Hans-Mill Corp. is moving ahead on renovating the vacant Northwest Jacksonville facility it bought to make metal trash cans and create 23 jobs.
The company has applied to the city for a permit to renovate office space on two floors in the former Cenveo Corp. envelope plant at 5406 W. First St.
Plans call it Phase 2 of three phases to consist of the office space and installation of racks. It’s a $150,000 project by contractor Duckworth Construction Co.
The first phase was installing assembly line machinery and equipment. Permits already have been approved, totaling $218,000, for a sprinkler system; electric heaters and fan; and wiring for the line equipment.
A third phase is described as installation of molding machinery and equipment, along with demolition and replacement of some of the concrete slabs.
In Phase 2, Duckworth Construction will renovate 7,380 square feet of space — 3,690 square feet on both the first and second floors. The first floor will be the lobby, breakroom, conference space, work areas, some offices and the first aid area.
The second floor will comprise eight offices, conference space and work areas.
Design Development Architecture Inc. of Middleburg is the architect.
The remainder of the 120,000-square-foot building is for manufacturing.
The building was developed in 1969. Cenveo closed the envelope plant in 2014.
Hans-Mill bought the almost 6-acre property June 8 for $3 million from Covington Group, doing business as 5406 West First Street LLC.
City Council enacted an ordinance July 26 for a $200,000 grant for the company to create 23 jobs and invest almost $11.8 million for the real estate, machinery and IT equipment.
The city Office of Economic Development estimates a minimum capital investment by Hans-Mill of almost $11.8 million, comprising $3 million for the real estate, nearly $7.8 million in machinery and equipment, and $1 million in IT equipment.
A project summary from the office said the company could complete the renovations within 90 days from the construction start, install the machinery and equipment and start operations by year-end.
The economic development agreement says construction could start by Aug. 1 and be completed by March 31.
The summary says the jobs would be created within the first 18 months after renovations are completed and the company starts manufacturing at the site.
Hans-Mill is required to hire at least five Northwest Jacksonville residents before the grant can be disbursed.
The legislation, which was introduced June 14, appropriated the grant from the Northwest Jacksonville Economic Development Trust Fund to offset the cost of renovations at the unused property. The grant works out to a per-job cost of $8,696.
The summary said Hans-Mill would create 23 jobs by June 30, 2018, at a minimum average wage of $30,000.
The grant would be disbursed after the improvements are completed and the jobs are created. The city could recoup funds on a sliding scale if the project is abandoned within the first five years after the grant is disbursed, according to a legislative summary.
The summary said Hans-Mill’s affiliated Chinese company makes metal household goods, including garbage cans, metal storage containers, kitchen knives and other utensils.
Hans-Mill works with Walmart, HomeGoods, JCPenney, Target, Crate & Barrel, Dillard’s, The Home Depot and Big Lots.
It registered in the state of Florida in February and its U.S. address is in New Vernon, N.J.
A representative said Wednesday by email the company wanted to keep its operations in anonymity until it is ready to operate. It expects a grand opening in the beginning of 2017.
OED said the project supports several public-purpose objectives by leveraging private capital in a target area; generating new ad valorem taxes; supporting job creation; putting vacant property back into use; and supporting the city’s desire to support manufacturing businesses in Northwest Jacksonville.
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