SPRINGDALE — Up to 150 jobs will be added to the economy representatives of a California-based company announced Wednesday.
Kent Hayden, chief executive officer of South Coast Baking Co., said the company picked Springdale over locations in several other states after deciding a year ago to expand. South Coast, in Irvine, provides frozen cookie dough to Sam’s Club, Mrs. Fields and Panera Bread.
“We make over 2 million cookies per day,” Hayden said. “We’ve been a supplier to Sam’s Club for 22 years.”
The company plans to renovate a 104,000-square-foot building at 800 S. 40th St. The company will spend nearly $8.7 million to transform the building into a manufacturing and warehouse facility, Hayden said.
Production is to begin in July, Hayden said.
Hayden described his company as a family business. He introduced his family and those of his business partners who were among the crowd of about 125 that attended the announcement.
The reception the company received when first talking to Springdale officials was a major reason the city was chosen for the expansion, Hayden said.
“The first time we met, Mayor (Doug) Sprouse was asking what it would take to bring us here,” Hayden said.
Increasing employment is a goal for city officials, Sprouse said.
“Jobs are the lifeblood of economic growth,” Sprouse said.
Sprouse also praised state officials for coming up with incentives for South Coast’s expansion to Springdale. The company will receive incentives from the Arkansas Economic Development Commission and Gov. Mike Beebe’s office.
“The jobs will be in the $25 per hour range,” Beebe said. “The effects of the jobs will spread and create a better life for all residents.”
The incentives from the Economic Development Commission include an income tax credit of 1 percent of the total payroll of new jobs for five years, and sales tax refunds on building materials, machinery and equipment, according to Bentley Story, commission spokesman.
The Governor’s Quick Action Fund contributed $700,000 toward building renovation, Story said.
The commission also provided a $4.51 million bond guaranty, Story said. The guaranty is similar to a loan, he said.
The company plans to begin production with 80 employees and increase to 120 in two years. The total number of employees should reach 150 in three years, Hayden said.
The Springdale plant will allow the company to reduce transportation distances by 2.5 million miles per year, Hayden said.