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Trust allocates up to $175,000 in bond proceeds for Kearney National to support 81 new jobs
Summary
The Trust approved allocating up to $175,000 of GO bond proceeds for job-creation incentives to Kearney National Inc. to support establishment of an aluminum light-pole manufacturing facility in Oklahoma City, creating a planned 81 jobs over five years and investing in machinery and real estate.
The Oklahoma City Economic Development Trust on July 29 approved a joint resolution allocating gold bond proceeds not to exceed $175,000 for job-creation incentives to Kearney National Incorporated (doing business as HebcoPole Products). Staff described the project as manufacturing aluminum light poles in a proposed 270,000-square-foot facility (OKC 577) that would serve western and Midwestern markets and shorten shipping from the company’s East Coast base.
Kenny Sutil introduced the item as a job-creation deal intended to create 81 new jobs over five years with an average annual wage just under $51,000. Fred Vermeer, retained as project manager and the former president and CEO of HebcoPole (HebcoPol Products), said the company manufactures aluminum light and flag poles and is expanding west from its Abingdon, Virginia facility.
Vermeer told the Trust the company plans to invest about $14,000,000 in machinery and equipment and expects the real estate cost to be in the $35 million to $40 million range. He described aluminum poles as lower total cost of ownership than steel or composite poles and said customers include departments of transportation, utilities, municipalities and military bases. Vermeer estimated the firm’s construction and site ramp-up could take roughly 12–14 months after final design and cost confirmation.
Sutil said the allocation would support the company’s move to a proposed OKC 577 site, and the Trust took a motion to approve the allocation; the item passed after a motion and second. The transcript does not record the mover, seconder, or a roll-call tally. Staff indicated the company sees Oklahoma City as a favorable distribution location along I-40 for shipping westward and cited the availability of welders and a skilled labor force in the area as part of the rationale.
The action is an allocation of previously available bond proceeds for job creation incentives; staff noted the company expects payroll to ramp from under $1 million early to about $4 million by year five. Vermeer said the 81-job figure is conservative and could grow faster as production scales. The Trust’s approval authorizes allocation up to the specified amount; any incentive agreement terms and disbursement schedule will be reflected in the formal documents returned to the Trust and City Council as required.
