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Superior Paving Corp expanding business in King George Industrial Park

The King George Economic Development Authority (EDA) took action on a request by Superior Paving Corporation to authorize the sale of Lot #2 in the King George Industrial Park to the asphalt paving company.  
The action took place earlier this month at a meeting on November 13.  
The lot, which contains 5.1 acres, will be purchased for $229,500, which comes to $45,000 per acre.  
The lot being purchased is adjacent to another lot owned by Superior Paving.
A written offer from Superior’s Executive Vice President James A. Mitchell provided more information about the company’s plans for the property.  


Mitchell’s letter said the company was anticipating a capital investment in equipment of $750K.
Mitchell’s letter also stated, “We will be able to preserve natural resources in King George and surrounding counties by having the ability to recycle old asphalt as part of our existing manufacturing process.  This will also keep this material from using up capacity in the county landfill.”
Mitchell also said the planned recycling operation would generate between 2 and 4 additional jobs at the facility, at an annual salary of $50K each per year.
It was further stated that the development of the additional lot would allow the company to meet its goal of running a paving crew out of the location on a daily basis.
Mitchell explained that currently a crew comes over from Fredericksburg to work out of the existing plant in King George.  
Mitchell added, “When the market improves, we expect there to be enough work in the area, that we will be able to run a crew out of this location full time. Obviously, our increased ability to compete for this work will enable us to reach this goal, and reach it sooner. A dedicated crew out of this plant will yield an additional 12 -15 employees.”
Mitchell noted that with the uncertain economic conditions, the timing of the expansion is not clear, but he added, “We hope to add the recycling unit within two years, and the full time crew within five years.”
Conditions attached to the sale by the EDA include a requirement that closing on the purchase occur within 60 days.  
Another condition of the sale is that the $750K capital investment in new equipment take place within three years from closing.  
Should the capital investment be delayed or no longer a consideration, the owner would be responsible for paying the EDA $2,400 per year.  
Additionally, the EDA will hold a first right of refusal on the property should the owner desire to sell the property separate from the primary business and/or to a business or industry different from that which they currently operate.
 

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