Archdale company seeks incentives for possible expansion
Jun. 25—ARCHDALE — An Archdale upholstered furniture manufacturer is seeking local government incentives to assist with a possible expansion.
Lancaster Customworks Inc. is considering building a new plant at a site on Archdale Road near Interstate 85, according to Kevin Franklin, president of the Randolph County Economic Development Corp.
Company owner Bill Lancaster initially proposed the project last year and has since broadened its scope and acquired the site — a 26.7-acre parcel adjacent to the Archdale Industrial Park.
"He was looking at this property previously, but it was a little bit of a challenge to get it under control," Franklin said. "He's been doing well and needs to expand his business, so they're looking at building a new facility to be able to accommodate their current needs as well as future growth opportunities."
If the company moves forward with the expansion, it would relocate from its current facility, which is nearby at 402 Interstate Drive, he said.
The company would develop about 70,000 square feet of building space on the site.
The Archdale City Council and Randolph County Board of Commissioners next month will consider authorizing a total of $120,700 in cash incentives for the project.
Franklin said Lancaster is also considering a site in Virginia for the expansion.
"So we're hopeful this incentive offering from the city and the county will be sufficient to see him grow right in Archdale," Franklin said.
To receive the incentives, the company would have to make an investment commitment of $5.02 million in the expansion over five years, with at least $4.29 million allocated to real property and site improvements, and $731,000 for business personal property, such as equipment.
In addition, the company would have to retain 25 current full-time employees and create 27 new full-time jobs in Archdale with an average annual wage of $46,000 in order to receive the full amount of the incentives.
The maximum amount provided by Archdale would be $41,700. The City Council on July 5 will consider authorizing the incentives, as well as a concession that would allow Lancaster to pay a fee in lieu of constructing a portion of a required sidewalk on Archdale Road.
County commissioners on July 11 will consider authorizing Randolph's maximum portion of the incentives, which would be $79,000.