Gov. Bob McDonnell announced Monday that Cadence Inc. plans to expand here, creating 65 jobs and investing $15.9 million locally.
“The good news is that these jobs are going to be good jobs,” McDonnell said, addressing a crowd under a white canopy tent at Cadence’s headquarters in Green Hills Technology Center. “They’re in the technology sector, something we know we need more of in Virginia and America.”
Originally formed as Specialty Blades Inc. in 1985, the company manufactures cutting and piercing instruments for industrial, medical and life science applications.
Cadence CEO Peter Harris said the business climate here and quality of the local workforce figured largely in the company’s decision to expand in Staunton rather than at a Costa Rica site that was considered.
The incentives package associated with the deal included a $150,000 grant from the Governor’s Opportunity Fund to Staunton to assist in keeping the company in Virginia, and $65,000 from the Virginia Department of Business Assistance for employee training. Cadence also will be eligible for Virginia Enterprise Zone Program grants.
“In very short order, that $150,000 will multiply itself many times over in property taxes and sales taxes and other taxes the commonwealth gets back,” McDonnell said. “We only do this because it’s a good investment in our people and a good investment in future tax revenue.”
Staunton also plans to return increased machinery and tools tax generated by the expansion for five years to the company, resulting in another $175,000 in savings.
Assistant Economic Development Director Amanda Glover said Staunton began negotiations to bring the expansion to the city last fall.
The endeavor will include construction of a new 30,000-square-foot building.
In addition to presenting a large copy of a $150,000 check to Mayor Lacy King, McDonnell also bestowed a Virginia flag, flown over the capital, to Harris.
In return, the executive presented McDonnell with a specially crafted knife made by the company’s employees.
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