ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Thursday, December 7, 1995 TAG: 9512070039
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
DATELINE: PULASKI
SOURCE: PAUL DELLINGER STAFF WRITER
The state "Enterprise Zone" designation for part of downtown Pulaski came just in time to help keep the town's oldest continuous industry where it is.
Jefferson Mills needed room to expand and had considered moving, perhaps into Pulaski County. But, with the town's cooperation, it found a way to stay at its present location.
Pulaski Town Council voted Tuesday to close 251 feet of First Street so the yarn-processing plant can construct a connection between two of its buildings. The move would give the plant 20,000 more square feet of storage space and make it easier to move raw or processed yarn from one area to another.
"What we would like to do is build a new plant," said Jefferson Mills President and Chief Executive Officer Dave Spangler. "It came down to $75,000 a month for 30 years," he said. And that was too expensive.
The expansion, along First Street between Maple and Valley streets, should satisfy the company's needs for at least five years, Spangler said. Otherwise, Jefferson Mills would have to lease temporary warehouse space to handle its increased production. And that would increase costs and cause logistical problems.
Jefferson Mills also plans to upgrade its equipment, which will be made easier by the tax breaks from the enterprise zone, said Denny Pace, vice president for manufacturing.
The new machines, which stretch the yarn and prepare it to be used in hosiery products, must be imported, costing an average of $100,000 per machine plus $28,000 in tariffs.
"Without the purchase of new equipment to replace the old slow-speed machines, we will start seeing a decline in our share of the market," Spangler said. With the new equipment, both quality and production can increase.
The company has been under new ownership for the past four years, and has increased its production and market share during that time. Profits have gone back into the company, Spangler said.
Pulaski County Administrator Joe Morgan said the county would like to provide a site for the plant if it moved, but agreed that it would be difficult to replace the quality of its existing work force. Some of its employees live close enough to walk to the plant.
Barry Matherly, who became the town's economic development director a few months ago, said the Enterprise Zone status will allow Jefferson Mills to gain state tax credits on its new machinery and construction. "This was an area that needed jobs," he said.
Jefferson Mills is expanding from a $50 million annual operation to $75 million, Spangler said. The company already has started adding new jobs - it hopes to see as many as 50 - to its previous 390 employment figure.
Two Valley Street residents told council they opposed the street closing to accommodate the plant. Dorothy Donithan said she counted 97 vehicles using that section in one hour. James Murphy said the closing would force people a block out of their way.
But Juanita Mann of Maple Street said she had talked to her neighbors and none had a problem with the closing for the plant expansion. If the plant left that part of town, she said, there would be nothing there.
Other council actions included:
Approval of permits for 12 cabs for Blue & White Cabs Inc. and eight for the Jim Dandy Taxi Service in the coming year.
A resolution supporting continuation of the Bristol rail passenger study, which is looking at rail passenger service between Bristol and Washington, D.C., or Richmond.
Agreement to hold a public hearing on proposed sewer rate increases at the next council meeting Dec. 19. Council will vote on the increases at the same meeting.
LENGTH: Medium: 74 linesby CNB