By John Dobberstein, Editor
Paccar Winch has signed an economic development agreement with the Broken Arrow Industrial Trust (BAIT) that includes an expansion of their plant and creation of new jobs.
The longtime manufacturer will be investing $4.5 million to increase the size of their operation at 800 E. Dallas St. The agreement includes Paccar Winch buying 3 acres of city-owned property located in the center of their site footprint that they’ve been leasing since 1963.
The company, which makes hoist, winch and drive systems for commercial applications, consists of two manufacturing facilities in Broken Arrow and Okmulgee.
The Broken Arrow facility’s 230,000 square feet houses a machine shop with grinding, shaping, hobbing and turning equipment, a state-of-the-art parts warehouse system that decreases pick-to-ship time, and a heat-treat facility that ensures the high-quality, durable gearing.
The manufacturing plant is located on land that was once school-district property, part of the farm area for the Haskell Agricultural College campus and farm area.
On January 31, 1963, the company signed a 20-year agreement to lease 3 acres of city-owned land, and after that expired the agreement became year to year for a period not to exceed 70 years.
The yearly lease payment from Paccar Winch to the city was $5,000 per month and the estimated lease amount remaining on the agreement was approximately $190,000.00.
Last year, Paccar Winch president Mike Rodgers approached the city about expanding their current facility and expanding their Broken Arrow workforce, and wanted to end the lease payment and deed the 3 acres to Paccar Winch to assist with financing improvements to the facility.
The city ordered an updated appraisal on the property from John Story III and assigned a value of $290,000.
Paccar will develop, construct and facilitate the expansion of the facility to become an approximately 250,000 square feet, and it will include a $3.5 million investment for a new paint system and other related equipment.
Paccar will also expand its number of full-time employees from the current 142 to 192 at a minimum starting wage of at least $25 per hour.
BAIT agreed to pay back Paccar Winch for the $240,000 deposit on the fifth anniversary date of the execution of the agreement so long as the company fulfills its obligations.
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