New HVACR wholesaler builds in The Yards - Johnstone Supply store has Sioux Falls headquarters
By Michele Linck / Journal staff writer | Posted: Thursday, March 20, 2008
SIOUX CITY - Owner Rick Hull says he expects his new Johnstone Supply store in The Yards Industrial Park in Sioux City to be ready for business by early summer.
The company is a wholesaler of heating, vacuum, air conditioning and refrigeration (HVACR) equipment, parts and supplies, with locations in Sioux Falls, Appleton, Wis., and Fargo, N.D.
But it is already has customers in Siouxland, said Hull, who owns the stores with his wife, Glynis.
"We currently service the Sioux City market along with a number of other locations in Iowa out of Sioux Falls via truck route," Hull said. "The business has grown so much in Sioux City we're currently doing two truck routes a week." He said if they weren't building a store in The Yards here, they would have to add a third truck each week.
The Sioux City location, at 1401 Cunningham Drive, is on 5.6 acres, the site of the former Needham Packing plant purchased from the city for $1.
The store will operate under the under the Hulls' company, Dakwa Inc., doing business as Johnstone Supply. It is headquartered in Sioux Falls.
The Sioux City store will be the fourth Johnstone Supply store for the Hulls, and their first in Iowa. They, along with the owners of more than 320 stores in the U.S., Guam and Korea, are members of the Johnstone Supply cooperative, from which they purchase their inventories and certain services. Hull said the coop itself is not-for-profit and operates somewhat like the rural electrical cooperatives.
The nearly $2 million project in The Yards will cover 28,750 square feet, holding a 17,500-square-foot warehouse and 11,250-square-foot showroom, office and training space. Hull said it will employ six people to start, and, assuming their business plan works, will add four more employees by the end of three years. They will have an average hourly wage of $16.78.
The company is receiving a projected state tax incentives valued at $275,000, including $92,000 in Targeted Jobs Withholding Tax Credits and nearly $184,000 from the Enterprise Zone program.
The city will also provide $310,000 to the company: a $210,000 forgivable loan and $100,000 at 4 percent interest, according to Chris Myres, economic development specialist with the city.
In return, the company has agreed to a minimum assessment of $1.5 million for a period of 10 years beginning Jan. 1, 2009. The city expects to see a return on its investment within five years.
"It's a good success story," Marty Dougherty, Sioux City Ecomomic Development director, said. "It's good for The Yards."
The company is a wholesaler of heating, vacuum, air conditioning and refrigeration (HVACR) equipment, parts and supplies, with locations in Sioux Falls, Appleton, Wis., and Fargo, N.D.
But it is already has customers in Siouxland, said Hull, who owns the stores with his wife, Glynis.
"We currently service the Sioux City market along with a number of other locations in Iowa out of Sioux Falls via truck route," Hull said. "The business has grown so much in Sioux City we're currently doing two truck routes a week." He said if they weren't building a store in The Yards here, they would have to add a third truck each week.
The Sioux City location, at 1401 Cunningham Drive, is on 5.6 acres, the site of the former Needham Packing plant purchased from the city for $1.
The store will operate under the under the Hulls' company, Dakwa Inc., doing business as Johnstone Supply. It is headquartered in Sioux Falls.
The Sioux City store will be the fourth Johnstone Supply store for the Hulls, and their first in Iowa. They, along with the owners of more than 320 stores in the U.S., Guam and Korea, are members of the Johnstone Supply cooperative, from which they purchase their inventories and certain services. Hull said the coop itself is not-for-profit and operates somewhat like the rural electrical cooperatives.
The nearly $2 million project in The Yards will cover 28,750 square feet, holding a 17,500-square-foot warehouse and 11,250-square-foot showroom, office and training space. Hull said it will employ six people to start, and, assuming their business plan works, will add four more employees by the end of three years. They will have an average hourly wage of $16.78.
The company is receiving a projected state tax incentives valued at $275,000, including $92,000 in Targeted Jobs Withholding Tax Credits and nearly $184,000 from the Enterprise Zone program.
The city will also provide $310,000 to the company: a $210,000 forgivable loan and $100,000 at 4 percent interest, according to Chris Myres, economic development specialist with the city.
In return, the company has agreed to a minimum assessment of $1.5 million for a period of 10 years beginning Jan. 1, 2009. The city expects to see a return on its investment within five years.
"It's a good success story," Marty Dougherty, Sioux City Ecomomic Development director, said. "It's good for The Yards."
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