NCRR Injecting $500K Into Fit Precast’s Rail-Served Facility
Through NCRR Invests, NCRR said it uses private revenue to support job creation, freight rail use, and long-term economic growth across North Carolina. Its funding for Fit Precast’s rail spur will cover design and construction, including drainage, track, and signal work.
Fit Precast, a National Infrastructure Holdings (NIH) company, is investing $102 million into its 154,000-square-foot facility in Gastonia, N.C., which will manufacture precast concrete and piping products used in stormwater management, transportation, and utility construction projects. Upon completion, the company is expected to receive and/or distribute a minimum of 500 railcars annually, and create 125 full-time jobs with an average annual salary of $102,168.
Other key partners in the Fit Precast project include Norfolk Southern, the Office of Governor Josh Stein, North Carolina Department of Commerce, Economic Development Partnership of North Carolina, North Carolina General Assembly, North Carolina Community College System, Gaston College, Duke Energy, Enbridge, Gaston County, Gaston County Economic Development Commission, and the City of Gastonia.
“The demand for resilient, American-made infrastructure has never been greater, and North Carolina is the ideal place to meet that challenge,” Fit Precast President Matt Goreski said. “This flagship headquarters and production facility is the most advanced precast concrete manufacturing site in the country, investing in both leading-edge technology and the people of North Carolina with high paying, meaningful careers. The Gaston County EDC and the State of North Carolina consistently went above and beyond to secure this project; we would like to thank them for making this our new home.”
“We’re proud to help strengthen Gaston County’s rail connectivity and support the significant job growth that Fit Precast will bring to the region,” said Carl Warren, President and CEO of NCRR, which manages 317 miles of rail corridor. “NCRR works closely with local partners to ensure communities have the rail infrastructure and strategic support they need to attract and sustain new industry.”
“Fit Precast’s operation in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee,” according to the North Carolina Department of Commerce. “Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $530 million. Using a formula that takes into account the new tax revenues generated by the new jobs and $71 million of the company’s investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $2,303,100, spread over 12 years. State payments occur only following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
“The project’s projected return on investment of public dollars is 170%, meaning for every dollar of potential cost to the state, the state receives $2.70 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
“Because Fit Precast chose a site in Gaston County, which is classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving as much as $255,900 into the state’s Industrial Development Fund–Utility Account. The Utility Account helps rural communities anywhere in the state finance necessary infrastructure upgrades to attract future business.”
