The state will provide a loan, but the county must pitch in as well.
Frederick, Md (KM) A resolution covering the financing of JLG Industries’ expansion into Frederick is before the County Council. The measure calls for the state to provide a $500,000 conditional loan from the Maryland Economic Development Assistance Authority Fund to pay for retro-fitting 113,000 square feet of space on Progress Drive into JLG’s new facility.
But the county must provide a 10 percent match, according to Beth Woodring, the Director of Financial Operations for the Division of Economic Opportunity. She spoke to the Council on Tuesday night. “We are proposing a $50,000 reimbursement of costs associated with this project as evidence of that ten percent match” she said.
“A few years ago, an economic opportunity fund was established for use in economic development projects where C&I {Commercial and Industrial} Tax Credits could not be used,” Woodring said, explaining where the match comes from. “That fund currently has a balance of $465,000 in it. We would be utilizing $50,000 out of that fund to provide that match.”
JLG Industries announced in February that it was expanding into Frederick. The company, which manufactures elevating platforms and telehandlers, is planning to open a facility at 8480 Progress Drive in Frederick at the Riverside Research Park. This new facility in Frederick would be used to develop new projects and have a new equipment testing area, says JLG Industries.
The company also said it plans to create 100 new full time jobs by December 31st, 2029. That prompted a question from Councilman Jerry Donald. “They say they’ll bring 100 jobs by 2029. And I’ve seen these for many years. Does your office follow up to see how many jobs they actually bought,” he asked Woodring.
“Absolutely. Absolutely,” Woodring responded. “We will periodically conduct site visits to the company.”
But she said the county has no way to “claw back” any of the money it lends out to JLG if it doesn’t fulfill its promises when it comes to job creation. However, the state may have this authority, says Woodring.
Councilwoman MC Keegan-Ayer asked of JLG is creating any part time jobs or other positions at its new facility. “Do you think your office could leverage maybe some apprenticeships for some of our students who don’t necessarily want to go to college. I know Workforce Services is always trying to figure out ways to get them hands-on experience for manufacturing positions,” she asked.
“Whenever we have a project, we always look for opportunities to have Workforce Services work,” Woodring responded. “And you’re absolutely right. With this being advanced manufacturing, this would be a perfect opportunity. In terms of the part time jobs, I’m not aware of any additional part time jobs that they’ve disclosed.”
The Council is expected to vote on this resolution at a later date.
By Kevin McManus