Category: Job Creation Project: Severn Peanut

Category: Job Creation
Project: Severn Peanut Company
Project Location: 1204 Peanut Street, Severn, NC 27877
Status: Plant in operation
Cost: $25,879,976
Description: Severn Peanut Company, dba Hampton Farms is a leading producer of peanut
consumer products. These products include peanut butter, granulated peanuts, and roasted in-shell
peanuts. The products are sold in grocery chains, ballparks, produce markets, etc, throughout the
United States and Canada. The company proposed making a large financial investment in a new inshell processing facility along with peanut roasting, drying, inspection, and packaging equipment.
This expansion would allow an increase in our production capabilities of salted-in-shell peanuts. It
would also allow us to continue production in the new facility while the current plant facility
underwent renovation. This would aid in retaining the current 85 employees while the new facility
would create an additional 46 jobs. The expansion facility would also allow Hampton Farms to
continue on its upward growth curve, thereby providing stable twelve month employment for the
inhabitants of Northampton County, N. C. and the surrounding areas.
Community Needs Addressed: The addition of 46 jobs is healthy for the local economy which has
limited employment opportunities. From Gary Brown, Northampton County Economic Development
Officer: "The Town of Severn (2010 population 275) is one of nine municipalities in Northampton
County (2010 population 22,095), a low-wealth minority majority county located in northeastern
North Carolina. Historically, the economy of Northampton County was dominated by labor intensive
agriculture where educational attainment and worker training was low. However, Severn Peanut
Company, founded by natives of the region, invested in manufacturing operations in Northampton
County. The company's desire was to close the employment gap and create gainful employment
opportunities for workers with limited training and work experience while sustaining a fiscally sound
enterprise. Common to businesses located in non-metropolitan areas, growth of the company was
hampered by substantially limited local government financial resources to support business
development." Employees and their families, who had no industry provided benefits, will now have
paid vacation, paid sick days, access to health insurance, dental insurance (if selected), short and
long term disability insurance, 401 (k) company paid additions to the employee contribution, and life
insurance. Employees, who have no food industry experience, will be exposed to training in FDA
requirements, HACCP, sanitation procedures, good manufacturing practices, and food safety
standards.
Benefits and Outcome: Construction was a state-of-the art peanut salting and roasting facility.
Incorporated into the plant were electronic sorting and inspection (the first that we know in the
peanut in-shell-salting industry) and state-of-art packaging machines. Benefits for Hampton Farms
included increased production, allowing for the continued growth of sales in the salted-in-shell
business, which benefits peanut farms as an outlet for their peanut crops. The new stainless steel
processing area provides for better compliance with FDA standards for wet processing areas. As
the construction progressed, employment was provided for 12-18 months for approximately 80
general construction workers, 45 electricians, and 25 employees of other trades, who were locally
from northeastern North Carolina and southside Virginia. Multiple pieces of large equipment, such
NDC Academy 2015
Job Creation
Severn Peanut Company
as roasters, packaging equipment, and metal structure fabrication were purchased from all areas of
the United States.
Hampton Farms continues to diversify their peanut product lines resulting in an increased numbers
of twelve month stable jobs.
The financial impact to Northampton Qounty in increased property taxes for the Year Ending
December 31, 2014 was $86,729. Thi? projected taxes on equipment listed as of January 1, 2015
will be $90,840 to Northampton County and $19,254.43 to the City of Severn.
Project Collaborators: The following firms participated in the financial planning and execution of
the project:
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Meherrin Agricultural and Chemical Company
Severn Peanut Company, Inc.
Severn Peanut Real Estate, LLC
Meherrin Fertilizer, Inc
Jimbos Jumbos, Inc
Hampton Farms of NC, LLC
HEDC New Markets
Housing and Economic Development Corp.
National Development Council
NDC New Markets Investments
Sun Trust Community Development Enterprises, LLC
Sun Trust Bank
Sun Trust Community Capital, LLC
Hunton & Williams, LLP
Revelle & Lee, LLP
Kaufman & Canoles Consulting
Holland & Knight, LLP
Miles & Stockbridge, LLP
Cohn Reznick Advisory Group
Piedmont Natural Gas of North Carolina
North Carolina Department of Commerce
Northampton County Board of Commissioners
Northampton County Economic Development Officer
What Makes Your Project Unique? : The project was handled by two coordinating CDE's to
construct a manufacturing project in a non-metro area that created sustainable stable jobs.
Organization’s Name: Severn Peanut Company
Website: http://www.hamptonfarms.com/
Main Contact: Jeffrey T. Vinson
Email: Jvinson@meherrinag.com
Phone Number: 252-585-1744
NDC Academy 2015
Job Creation
Severn Peanut Company
NDC Academy 2015
Job Creation
Severn Peanut Company
$
$
$
$
$
Mechanical Electrical and Plumbing
Process Equipment
Site Work
Legal/Accounting Costs
NMTC Advisor Fee
Version: October 2014
Project Name: Severn Peanut Company
Project Contact: Jeffrey T. Vinson
Submission Category: Track II Job Creation
25,879,976
Total Uses of Funds $
288,728
255,364
25,000
28,000
$
$
$
4,250
60,000
370,505
666,459
10,200,000
6,811,776
7,149,894
20,000
Amount
$
Reimbursement of CDE Fees 2013
NDC Interest and Expense Reserve
Construction Interest
NMTC Allocation Fee
$
$
Buildings & Buildings Systems
Surveyor
$
Land
Use
Uses of Funds
$
$
$
$
$
$
$
$
25,879,976
513,364
8,052,395
20,000
30,217
2,655,120
1,953,000
6,111,000
6,544,880
Amount
Total Uses = Total Sources
Total Sources of Funds $
Severn Peanut Company (Other)
Severn Peanut Company, Inc., Equity
Severn Peanut Company Inc., Contributed Land
Release from reserve
ST CDE Equity (SunTrust)
CDE Loan B (NDC)
CDE Loan A-2 (NDC)
CDE Loan A-1 (SunTrust)
Source
Sources of Funds
PROJECT SOURCES & USES OF FUNDS
NDC Academy 2015
Job Creation
Severn Peanut Company