Newton approves incentives to keep Pregis PolyMask expansion, citing jobs and $11 million investment

Newton City Council unanimously approved an Economic Development Agreement and a Building Reuse Grant agreement on Nov. 1 to support an expansion by Pregis PolyMask that the city’s economic development partner said would retain 67 existing jobs and create 10 new positions tied to an $11 million facility investment.

The vote came at the conclusion of a public hearing in which Nathan Huret of the Catawba County Economic Development Corporation told the council the expansion would add a film-coating production line and new technology to the Newton facility, and that state and county incentives plus the city’s participation would improve Newton’s competitiveness against other potential sites in Italy and Illinois.

The agreements approved by the council include a proposed 50% property tax grant for three years (the staff materials list that grant as approximately $30,298 per year, or $90,894 total) and participation in a state Building Reuse Grant application (anticipated $70,000). The record notes a 5% local grant match; meeting documents contain an inconsistent set of figures for the city’s share (one place lists $1,750 as the estimated maximum City cost, another line-item lists a City 5% match as $3,500). The meeting minutes and on-file agreements in the City Clerk’s office are the authoritative source for the final match amount.

During the public hearing, resident questions focused on location and job access. Huret said the Newton facility uses a Conover mailing address but is located within the City of Newton, and that “the positions are open to anyone regardless of where they live,” adding staff expect many hires to come from within a 30- to 40-minute drive of the plant. Several residents asked about timing; Huret said incentive payments would not begin until 2025 under the proposed schedule.

Council members framed the action as a retention effort as much as new-job creation. Council Member Jerry Hodge described the deal as a “save” that protects the local tax base and workforce, and Council Member Jody Dixon moved to approve the agreements; the motions were seconded and carried unanimously.

The Economic Development Agreement requires Pregis to invest at least $11,000,000 and create at least 10 new full-time positions (with job-creation milestones tied to the disbursement schedule for the building reuse grant). The Building Reuse Grant Agreement sets conditions on distributions and the City’s match; the full agreements are on file in the City Clerk’s office.

Next steps: with the municipal approvals in place, the county and state incentive packages will proceed as part of an intergovernmental effort to secure the expansion and the city will administer its portion of the grant obligations per the agreements.