Project Bluegrass: New Company Brings Promise of More Jobs to Flagler County

Hose manufacturer, MH Operations plans to bring 125 new jobs to Flagler County over the next two years.

Palm Coast, FL – August 17, 2010 – The Flagler Board of County Commissioners approved an 18-month lease of the former CAPT building at the airport to MH Operations, LLC. The ultimate goal of the company is to construct a permanent facility in the county within the next two years. The company will manufacture an inovative hose for both commercial and residential use. The building will serve as the location of the company’s headquarters and all operations activities, including administration, marketing, manufacturing and distribution. Flagler vied with several other locations to be the company’s selected location.
Over the next two years, the company is expected to create 125 new jobs within the county in two phases. Phase one (year one) will consist of 83 new jobs. Phase two (year two) will add 42 more. The average salary for the new positions will be $33,603, or 115% of the county’s current average wage. The anticipated capital expenditure, including construction of a 50,000 to 100,000 square foot building is $4.5 million.
MH will manufacture and market "Micro Hose," touted as the "hose that grows." The residential product is six feet long, but expands to thirty feet when in use.  [Watch Video] (It will take a while to load but is worth the wait) The residential product will be rolled out first, followed by products with commercial and industrial applications.
The lease agreement calls for a staggered monthly rent payment, starting August 20, 2010 at $2,000 per month through October 30, 2010, followed by four months at $5,000 and twelve months at $8,000. The lease term can be extended for one additional year at $10,000 per month. The county will expend no more than $30,000 on culvert, gate driveway improvements, and fencing. The improvements will make the facility more attractive to future tenants.
Palm Coast Holdings introduced the prospective opportunity to the county several months ago. To maintain confidentiality, the effort was codenamed "Project Bluegrass." The space use agreement culminates a joint effort that included Enterprise Flagler and county staff. Company representatives credited their choice of Flagler County to the persistent efforts of Enterprise Flagler Director, Greg Rawls in recruiting them. Enterprise Flagler assisted MH Operations by connecting them with investors providing needed startup capital and to secure the state grants.
In April, County Commissioners approved a resolution recommending the project as a "Qualified Target Industry" to allow the state to award $48,000 towards the project. Because Flagler’s classification as a rural county, it is exempt from the normal 20% matching funds requirement of the states grant program.
5 replies
  1. Bob
    Bob says:

    Same company promised Kentucky 125 jobs.

    This company recently bought a 48,000 s/f warehouse in Kentucky for $250,000 with the promise to create 125 jobs by 2013. But instead they decided to move here and build a 50,000 to 100,000 s/f building at an expenditure of $4.5 million?

    Yes we need the jobs but they will use us here with dirt cheap rental rates during start up then move to KY before 2013 with all of the jobs.

    Also the $48,000 is under the states economic incentive program that refunds the company $3,000 per job for creating jobs that pay better than 115 % of the prevailing wage. This makes only 16 jobs over the 115% of the prevailing wage.

    Check out the warehouse and history at Their website also states the warehouse is in the process of being fitted for production, but their CEO says there are no immediate plans to start up an operation in Kentucky.

    Something wrong here but score another great victory for Flagler County and Enterprise Flagler.

  2. Evelyn Palmeri
    Evelyn Palmeri says:

    Project Bluegrass: New Company Brings Promise of M

    So taxpayers are already in for $78,000 (that we know of) with no guarantees that this project won’t go south in the fine tradition of other initiatives like Ginn, Embry-Riddle, Chinese pilot school, Cakes Across America … s/off

    Does anyone know how much county, city and state taxpayers have paid for all the infrastructure, "grants," initiatives, junkets, including county and Palm Coast staff salaries, CRA’s, etc. and how much actual cash money saw its way into our coffers. I doubt very much we are anywhere near black ink after ten or more years of courting jobs.

    Let the business community raise whatever money they like to bring more business to the area. Dissolve the CRA’s which are draining taxpayers white. We taxpayers have enough of a burden keeping the wheels of government running in the black.

  3. Denise
    Denise says:

    Great but Need More

    Its great to see any business move into Flagler County but what is Enterprise Flagler doing about bringing someone in that would create a lot more jobs, like Costco. They are a perfect enterprise for Flagler. They are viewed as a stellar employer, and this type of business, would benefit the country greatly. And at Town Center, we have plenty of space, so why not a larger employer, like Costco??

  4. Toby
    Toby says:

    Reply to Denise

    Retailers have criteria which must be met before they locate a store in a particular market. Costco needs a population at least twice the size of the Palm Coast SMA.

    As to other jobs, we do not have the resources to compete for large companies against larger markets. Also, we don’t want to become dependent on a single major employer. We need lots of smaller, diversified companies just like MH Operations.

    With the population growth created by new companies coming to town, Costco will follow.

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