Vee Pak Ohio, one of the first companies to locate in the New Albany International Personal Care and Beauty Campus, is expanding.
Brandon Bayston, a controller for Vee Pak, said the company started a second shift in January.
Vee Pak officials plan to invest $8 million and add 60,000 to 70,000 square feet to the 105,000-square-foot New Albany facility.
The expansion would create 90 jobs with an estimated annual payroll of $3 million, said Jennifer Chrysler, New Albany’s community development director.
Daniel McCarthy, an attorney representing Vee Pak, said the family-owned company is based in Illinois and has 134 employees at the New Albany location.
McCarthy said the expansion should be completed by December.
Chrysler said the company has met its annual payroll benchmark of $3.8 million.
The company receives a 100 percent real property-tax abatement, which New Albany City Council on March 17 voted to extend by two years.
The abatement could be extended because the company will exceed $5 million in payroll after the addition is built and the new jobs are added, Chrysler said.
The abatement, initially approved in 2010, was extended from 10 to 12 years.
Chrysler estimated the expansion would generate $115,900 annually in income-tax revenue.
Per revenue-sharing agreements, each year the New Albany Community Authority would receive $40,000 for infrastructure-debt payments and the Johnstown-Monroe school district and the city’s general fund would receive $37,950 apiece from the income-tax revenue.
Bayston said Vee Pak produces lotions and soaps and one of its largest customers is Bath & Body Works, which is building a facility in the same business park.
By Lori Wince
ThisWeek Community News