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Statesville council approves incentive for GMS Fabrication expansion
Summary
The Statesville City Council unanimously approved a performance-based incentive grant for GMS Fabrication LLC to support a $14 million expansion that the company says will add up to 25 jobs; the grant is up to $219,115 paid over five years and tied to investment and job creation milestones.
The Statesville City Council on Dec. 15 approved a performance-based economic incentive for GMS Fabrication LLC, a race-vehicle manufacturer planning a 75,000-square-foot expansion near the Statesville Regional Airport.
Jen, the presenter for the request, told the council the company plans a $14,000,000 capital investment, expects to relocate existing machinery and add new equipment, and currently employs 22 people with plans to add up to 25 more. The packet cites an average wage near $81,000 and a county wage figure of $62,699; Jen confirmed the $81,000 figure during council questions. The expansion is expected to be completed by Dec. 31, 2028.
Under the approved agreement, the city will provide a performance-based economic development incentive grant of up to $219,115 paid over five years. The grant formula in the motion and handout ties payments to 80% of real property taxes and 50% of tangible personal property taxes; payments are contingent on the company making the capital investment and meeting contract terms. Council discussion included confirmation of the average wage cited in the packet, and a council member moved and amended the motion to restate the investment, job-creation and payment terms before the council voted unanimously to approve the incentive.
The public hearing on the incentive had no speakers signed up. The council’s approval does not itself obligate payments; the grant is described as performance-based and will be disbursed only after the company meets the contract conditions and investment milestones.
What’s next: city staff will finalize contract documents reflecting the terms approved by the council and monitor the company’s investment and hiring to trigger payments under the agreement.
