Hans-Mill Corp., which awaits city incentives to redevelop a site in Northwest Jacksonville to make metal trash cans, has purchased the property for $3 million.
The deed was made June 8 and recorded with the Duval County Clerk of Court on Friday.
The company, which registered with the state in February, bought a vacant 118,592-square-foot manufacturing facility on almost 6 acres at 5406 W. First St. in the city’s targeted Northwest area.
Legislation was introduced June 14 appropriating a $200,000 grant from the Northwest Jacksonville Economic Development Trust Fund to offset the cost of renovations at the unused property.
The legislation is in the council Finance Committee.
A project summary from the city Office of Economic Development says Hans-Mill would create 23 jobs at a minimum average wage of $30,000. The economic development agreement says those jobs would be created by June 30, 2018.
The summary says a grant from the fund would be necessary “to induce the company to select Jacksonville and the site identified in the Northwest area.”
The company received an indication of approval in May.
On May 16, the Northwest Jacksonville Economic Development Fund Advisory Board recommended council approve the $200,000 grant, which works out to a per-job cost of $8,696.
OED Executive Director Kirk Wendland said Friday through a city spokeswoman that Hans-Mill has been working with the city “for a considerable period of time.”
“When we agreed to terms they indicated that they needed to get moving,” he said.
The city issued a “Letter Preserving Inducement” on May 6, meaning the company could proceed without jeopardizing the “but-for” or material factor requirement.
“This is done at the company’s risk, as there are no assurances provided that the incentives will be approved, only that the request will be submitted,” Wendland said.
Hans-Mill is described in city documents as a newly formed U.S. corporation that proposes to create a manufacturing facility in Jacksonville to make metal trash cans for sale and distribution in the United States.
The OED summary says Hans-Mill’s affiliated Chinese company makes metal household goods including garbage cans, stainless steel flatware, metal storage containers, kitchen knives and other utensils.
OED estimates a minimum capital investment by Hans-Mill of almost $11.8 million, comprising $3 million for the real estate, almost $7.8 million in machinery and equipment, and $1 million in IT equipment.
The project supports several public-purpose objectives, according to OED: It leverages private capital in a target area, generates new ad valorem taxes, supports job creation, puts vacant property back into use and supports the city’s desire to support manufacturing businesses in Northwest Jacksonville.
The summary says if approved, the company could complete the renovations within 90 days from the construction start, install the machinery and equipment and start operations by year-end 2016.
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 location. Hans-Mill is required to hire at least five Northwest area residents before the grant can be disbursed.
Hans-Mill would work with Walmart, HomeGoods, JCPenney, Target, Crate & Barrel, Dillard’s, The Home Depot and Big Lots.
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.
Hans-Mill bought the property from Dallas-based 5406 West First Street LLC, whose manager is West First Management LLC. They are part of the Covington Group Inc./Huntington Group LLC.
The building was developed in 1969. Duval County property records show it is assessed at $924,748 for tax purposes.
It had operated as an envelope plant. West First Management bought it in December 2014 after Cenveo Corp. closed it that year.
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