FAITH HARPER, firstname.lastname@example.org
A company that manufactures industrial plastic was granted a tax abatement from the Tyler City Council, in exchange for new investment into the facility and retention of jobs.
Hood Flexible Packaging, 2410 N. Lyndon Ave., is the largest manufacturer and supplier of heavy-duty plastic shipping sacks in North America. It is privately owned with headquarters in Hattiesburg, Mississippi, according to the Tyler Economic Development Council.
The incentive package would relieve the company from paying property taxes to the city in exchange for it spending $4.5 million in new investment to upgrade and expand its line. The company also would add four jobs locally in addition to retaining four positions.
Following the council’s unanimous approval on Wednesday, the EDC will present the deal to the Smith County Commissioners Court as well as the Tyler Junior College Board of regents for their individual participation. By law, school districts cannot participate in tax abatements.
Tyler is competing for this investment with another Hood location in Canada, according to the EDC. Hood Tyler requested tax abatement to help make the expansion project more competitive.
This will be the second tax abatement package offered to the company.
The company was given a three-year abatement in 2013, which gave the company relief from city, county and TJC taxes. That abatement was extended a year, but only for the city’s portion of property tax. The company currently is in that extended year.
Hood Packaging has exceeded its job-setting and capital investment goals. The jobs pay well.
According to the EDC it has invested more than $38 million in major capital projects in Tyler, and more than $15 million was made in the last two years.
Employment increased from 78 in 2012 to 140 in 2016, according to the EDC. The average hourly rate is $20.11 before benefits and $26.55 with benefits.
Hood Packaging annually contributes $6.8 million to the local economy through its net payroll, local purchases and tax payments.