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Rebar firm seeking to relocate to King George

A national rebar fabrication company that wants to relocate to King George County is applying for $450,000 in state rail funds.

The King George Board of Supervisors announced on Tuesday that HGAC LLC of Delaware is interested in buying 32 acres next to the county’s industrial park for $1.37 million.

As part of the deal, the county passed a resolution supporting the company’s application for industrial access railroad track funds from the Virginia Department of Rail and Public Transportation.

The funds would be used to make “certain improvements to the existing rail on the property,” according to the memorandum of understanding.

Supervisors approved the memorandum and resolution after a closed session that ended about 9 p.m.

They didn’t read either document aloud or give any other details. When asked the company’s current location, Supervisor Chairman Joe Grzeika said, “You have the resolution,” and walked out of the room.

There are two rebar companies in the Fredericksburg area: Potomac Rebar, off U.S. 17 in Stafford County, and CMC Rebar, off U.S. 17 in Spotsylvania County.

The supervisors have been meeting in closed sessions for months to discuss a prospective business locating in the county.

Linwood Thomas, King George’s director of economic development, provides a written report to supervisors regularly about ongoing projects.

“Project Metal Works” is one of four on Thomas’ list, and has been mentioned since January. It’s the only one in the final stages of negotiation and near the industrial park.

According to Thomas’ reports, the company has more than 60 locations throughout the United States and the world. The move to King George would result in between $8 million and $12 million in capital investment and 60 to 80 jobs.

On April 15, Thomas wrote in his report that “King George County is on a short list of three potential sites for this project.”

In the memorandum, the county says it will pay to bring public water and sewer and fiber optic cable and broadband service to the property.

It also says the state will provide the first $300,000 in rail funds. After that, the county will match the state funding, dollar for dollar, up to $150,000.

If the cost of rail improvements exceeds $600,000, the company will be responsible for any additional costs, up to a maximum of $150,000, the memorandum states.

CSX rail tracks run through industrial park, though the memorandum doesn’t state what kind of improvements are needed to the line.

King George began to develop its industrial park in 2003 as a way to bring other businesses to the county, besides the Navy base at Dahlgren.

It has set aside $4 million in its capital improvement plan to help pay the costs of extending a natural gas line to the park.

The complex is off State Route 3 and across from the King George Landfill. It’s currently home to three businesses: Gerdau Ameristell, Faddis Concrete Products and Superior Paving.

In January 2009, Harris Teeter Inc. announced its plans to build a distribution center in the industrial park. The supermarket planned to pay King George $4 million for 100 acres of land and build a warehouse, which would have cost $101 million and created 335 new full-time jobs.

Negotiations were delayed when the economy slowed, and the company eventually dropped its plans.

The county also is looking for another source of revenue as the landfill has passed the halfway point of its life expectancy. The facility will be filled to capacity in 15 years unless Waste Management does a vertical expansion of the facility, which would extend the life of the landfill another 15 years.

Cathy Dyson: 540/374-5425

cdyson@freelancestar.com

 

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