You probably have seen the news that specialty trailer manufacturer the Faymonville Group plans to locate its first U.S. production facility at the Port of Little Rock.
An aggressive recruitment effort that included a classic car ride and Wright’s barbecue, paired with a robust incentive package, sealed the deal.
That incentive package is led by the city of Little Rock’s plan to convey about 50 acres at the Port to Faymonville, which is headquartered in Luxembourg. The Little Rock Board of Directors approved a resolution permitting the mayor and city clerk to execute an agreement to convey the land, which will be subject to measurable economic development targets.
“The Little Rock Port Authority has incorporated certain claw back provisions and employment provisions into the land conveyance document that will ensure the Little Rock Port Authority is appropriately compensated if certain requirements are not met by the Faymonville Group,” the resolution states.
In addition, the Board of Directors also approved the issuance of $120 million in revenue bonds to finance the construction and equipping of Faymonville’s facility. Neither the debt nor costs of the bonds will be the city’s; instead, the Faymonville Group will pay the city under a 15-year lease agreement.
The agreement also acknowledges that the properties comprising the project may be exempt from ad valorem taxes, so the city intends to enter an agreement with Faymonville requiring the company to pay 35% of the property taxes that would be due if not exempt.
In addition to the local incentives, the Arkansas Economic Development Commission offered the following incentives: Create Rebate, which provides annual cash payments based on a company’s annual payroll for new, full-time employees; and Tax Back, which provides sales and use tax refunds on purchases of building materials and taxable machinery and equipment to qualified businesses investing the requisite amount and signing a job creation agreement.
The Faymonville Group, which builds ultra-high-capacity trailers, expects to begin construction next year and begin production in 2026. Once the project is fully developed, the company expects it to employ 500 people at an average annual salary of $46,800.
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