Covington, Ky. – Northern Kentucky Tri-ED announced today that expansions by FedEx Ground Package System Inc. and Messier-Bugatti USA, LLC in Northern Kentucky were presented to the Kentucky Economic Development Finance Authority (KEDFA) Board for approval.
“Northern Kentucky is proud to kick off 2016 with growing manufacturing operations such as Messier-Bugatti and logistics companies like FedEx expanding in our region,” said Dan Tobergte, president and CEO of Northern Kentucky Tri-ED. “Through NKY Boost, our business retention and expansion program, we facilitate investment and growth by our primary industry companies which ultimately leads to new jobs in our region.”
Messier-Bugatti USA, LLC is planning to invest $150M in an expansion of its Walton, Kentucky facility that will create 84 full time jobs. This is the company’s seventh expansion since opening in 1999. The Walton facility supports leading North American programs such as Boeing 787, 737, 767, 777 and the Airbus A320 family.
To encourage the investment and job retention at the plant, the KEDFA Board preliminarily approved Messier-Bugatti USA for tax incentives through the Kentucky Business Investment Program (KBI) and the Kentucky Enterprise Initiative Act (KEIA). The KBI incentive provides income tax credits and wage assessments over the agreement term for meeting certain investment and job retention targets, while the KEIA incentive provides a refund of Kentucky sales and use tax paid for eligible building, construction, and equipment costs.
FedEx Ground Package System Inc., a subsidiary of FedEx Corporation, is also planning a $150M investment and expansion of its operation in Northern Kentucky that will support the creation of 62 new full time jobs. The distribution hub opened in 2005 in Enterprise V Industrial Park in unincorporated Boone County.
The KEDFA Board approved FedEx for a seven year industrial revenue bond agreement which will abate a percentage of property taxes at the expanded FedEx facility.