Fairfield company looks to double its size, add more jobs

Fairfield City Council will consider Monday night giving a shipping and packaging supply distributor a tax break in exchange for the company doubling its footprint with a $1.7 million expansion project.

Ship-Paq, 3845 Port Union Road, wants to add an additional 47,000 square feet to the existing 46,500-square-foot facility.

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In exchange, the city will exempt 60 percent of the property tax over five years, but the company will make annual payments to Fairfield City Schools and Butler Tech — $6,800 and $120 annually, respectively — which receive property tax dollars.

The company is expanding because “basically we need additional growth,” said Ship-Paq President Randy Jarboe. “Our capacity for new customers in this area is limited.”

Ship-Paq employs 17 full-time people, and Jarboe said they would most likely hire four more full-time with the expansion. The proposed tax incentive agreement with the city calls for four full-time equivalent positions.

“It’s always nice when an existing company can expand and grow, and stay in our community,” said Fairfield Department of Development Director Greg Kathman. “Especially as the city gets low on available land, it’s more and more important for us to retain our growing companies.”

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Kathman said according to company officials, the growth of Ship-Paq has been a direct result of the rise in e-commerce.

“Their business has grown because they sell packaging type supplies,” Kathman said. “There’s a lot more stuff being delivered.”

One part of the business that’s grown is the custom packaging tape, which he said the company is at about 80 percent capacity in their printing operation.

The city’s ability to provide tax incentives is “critical” for a growing tax base, said Fairfield Chamber of Commerce President and CEO Kert Radel.

“It’s vital for the businesses to see there is value in what they are offering and they should stay in the city of Fairfield,” he said.

And this company, and others expanding in the city, are “indications the economy is moving upward,” Radel said.

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