Monogram Snacks Martinsville, LLC, a wholly owned subsidiary of Monogram Food Solutions, LLC, received a New Markets Tax Credit allocation of $8 million from Rural Development Partners as part of a financing package for a major expansion project at its Martinsville, Virginia production plant. The overall expansion cost $61.7 million, added 56,000 square feet and renovated space in the original production plant.
The project is located in a severely distressed census tract with unemployment of 11.2% in April 2014 and job growth stagnated or decreasing. The unemployment for this census tract compares unfavorably to the Commonwealth of Virginia unemployment of 4.9% in April 2014. Monogram Martinsville will commit to over $30 million capital investment in building, equipment, acquisition of the distribution center and inventory for the project.
The Phase II expansion had approximately a $3.5 million financing gap for completion of the distribution center facility and final purchase and installation of equipment. Monogram Martinsville committed to creating over 50 new permanent jobs for the low-income community. Monogram specializes in strategic co-packing, private label and branded business, with both owned brands and licensed brands.