THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Friday, February 21, 1997 TAG: 9702210803
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY BATTINTO BATTS JR., STAFF WRITER
DATELINE: PORTSMOUTH LENGTH: 53 lines
A company that supplies products and services to food industry giants such as Hardee's and Shoney's has announced plans to open an international office and distribution center in the PortCentre Commerce Park.
Fast Food Merchandisers Inc. will break ground today on a 23,000-square-foot building at the corner of PortCentre Parkway and Henry Street.
The office and distribution center, which is scheduled to be completed by July 1, will create 15 new jobs in the city and an additional $16,562 in tax revenue.
This is the second time in 10 days that a development has been announced for the 60-acre commerce park, which is only one-third full.
On Feb. 11, city officials announced plans to have Armada/Hoffler construct a 100,000-square-foot office building in the park that the city's Industrial Development Authority will lease in hopes of attracting businesses.
Matthew James, the city's director of economic development, said attracting business to the commerce park is critical to Portsmouth's efforts to rebound from years of economic decline.
``We are starting to get that critical mass that is critical to bring other development,'' James said. ``The development of the commerce park is critical in order to complement the city's economic base and create jobs. That's what the park was created for.''
Headquartered in Rocky Mount, N.C., Fast Food Merchandisers has about $1.5 billion in annual revenues. The company, which exports its products to 34 countries, needed to expand to meet its growing demand.
Portsmouth's location and its shipping industry made it attractive, company officials said.
``We chose the PortCentre site because of its centralized East Coast location, its enterprise zone benefits and the warmth and hospitality from city officials,'' said Ron Cornell, international director for Fast Food Merchandisers.
Challenge Construction Inc. of Portsmouth, which owns the site, will construct the building to meet the food distributor's needs.
James said past economic troubles had hampered the city's efforts to attract development in the commerce park.
``A lot of it is tied to the economic position businesses were in. They weren't expanding,'' he said. ``That has changed with improvements to the national and local economy.''
Challenge Construction already owns a 40,000-square-foot office/warehouse in the commerce park that has three tenants.
Don Powers, president of the company, predicts that the new buildings will bring additional development to the park.
``It is a great location and it is well connected,'' he said. ``This building and the one Armada/Hoffler is building is going to finally give us the nucleus we need. I think it will go very well.''