OWENSBORO, Ky. -Two economic development projects have been announced for Owensboro, Kentucky that which create 500 new jobs and retain an additional 296 jobs in the community.
The projects include a major expansion by U.S. Bank Home Mortgage’s Servicing Center in Owensboro. The company, which supports U.S. Bank’s growing national loan portfolio, will add approximately 500 new jobs over the next few years and invest more than $14.1 million as a result of the expansion. Additionally, Pinkerton Tobacco, a subsidiary of Swedish Match, plans a significant investment in its Owensboro plant that will allow the company to upgrade its facility and retain nearly 300 employees.
U.S. Bank Home Mortgage is ranked sixth among originators and servicers nationally. The Owensboro Mortgage Servicing Center supports U.S. Bank’s national portfolio of nearly 1.4 million loans totaling $198 billion. An increase in demand for U.S. Bank mortgage products and services has spurred the expansion. The company plans to lease an 81,000 square-foot facility in the Mid-America Air Park to house the new employees, which it will begin to hire in the spring of 2011. One of the largest employers in the area, U.S. Bank currently employs over 1,100 staff at its existing Owensboro facilities.
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Dan Arrigoni, president of U.S. Bank Home Mortgage said, “We continue to add quality loans to our solid mortgage portfolio and also invest in our infrastructure so that we can keep providing top-notch service for our existing customers while building for our future mortgage growth.”
Bob Smiley, U.S. Bank executive vice president and loan servicing manager at U.S. Bank Home Mortgage added, “Our portfolio has continued to grow at a rapid pace since reaching a milestone in 2007, by surpassing $100 billion in servicing volume. Today, only 36 months later, we have nearly doubled that volume to $198 billion.”
The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved U.S Bank National Association for tax incentives up to $4,370,000 through the Kentucky Business Investment program. The incentive can be earned over a 10-year period through corporate income tax credits and wage assessments. Additionally, KEDFA approved the company for tax benefits up to $130,000 through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures and equipment used in research and development.
KEDFA preliminarily approved Pinkerton Tobacco for tax incentives up to $1.85 million through the Kentucky Reinvestment Act, a program that was expanded in the Governor’s Incentives for a New Kentucky bill last summer to assist companies that need to make significant capital investment in Kentucky facilities in order to remain competitive.
Pinkerton Tobacco, which was established in Owensboro in 1973, produces smokeless tobacco products under the brand name of Red Man, Timber Wolf, Longhorn and Renegades at its 450,000 square-foot Owensboro plant. The company will invest $3.7 million in equipment upgrades that will allow for a continued production level, retention of the current market and the ability to maintain an existing workforce of 296 people. The reinvestment project will also encourage projections of up to 10 percent annual growth.
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