Date published: 7/5/2008

BY EMILY BATTLE

A Spotsylvania County company that does high-end woodwork for a client list that includes the White House could get public incentives to move to Fredericksburg, where it hopes to expand its operation.

City Council members will receive the details of a proposed 10-year, $200,000 incentives package for Creative Dimension Group on Tuesday. The council could vote on the package at a special meeting July 15.

Creative Dimension Group has outgrown its space in the Spotsylvania Industrial Park, according to a letter written by company President Deborah Sullivan and sent to city economic development staff as part of the incentives application.

The 26-year-old business produces cabinets, exhibit displays, millwork, woodwork and other products for a number of government agencies.

CDG is working to purchase the former Insteel Industries Inc. plant at 1351 Belman Road, in Fredericksburg's Battlefield Industrial Park.

Company co-owner and Vice President Jack Johnson said the deal has not yet been finalized.

"There are still moving pieces, and we hope to have resolution and closure on the deal by the end of the month," he said.

The incentives package is proposed as a way to fill the financing gap that CDG has encountered in trying to make this purchase at a time when credit markets are tight.

In order to get the incentives, CDG would have to invest $7.5 million in the purchase and renovation of this industrial building. It would have to employ 60 people in architectural millwork manufacturing at the facility.

CDG would also have to invest an additional $325,000 within five years to to expand its operation, add five employees within its first year of operation and add at least 15 more full-time employees within its first five years in the city.

The company currently employs 58 people. City Economic Development Director Kevin Gullette said its jobs are high-skilled trade positions with salaries in the range of $45,000 a year.

The incentive is proposed in two five-year periods, so CDG would have to meet these benchmarks to continue getting the $20,000 annual payments for another five years.

During the second five-year period, the company would have to maintain a workforce of 80 full-time employees.

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Date published: 7/5/2008

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