Orgill Inc., a large Memphis, Tenn.-based hard-goods distribution company, has bought for $12 million the former Kimball Office Inc. manufacturing plant in Post Falls, where it plans to open a distribution center and hire more than 100 employees.
Orgill has scheduled a March 31, 2017, opening date for the 475,000-square-foot distribution facility at 1881 W. Seltice Way, in west Post Falls, says company spokeswoman Kristyl Lawson.
“We’re remodeling now,” Lawson says of the former Kimball plant. “It will go through a significant renovation before we can go operational.”
The company currently is seeking candidates for a Post Falls human resources manager who will be the main point of contact for hiring, she says.
“Orgill plans to have more than 100 well-paid employees, including truck drivers as well as workers within the distribution center,” Lawson asserts.
Orgill, a privately held company founded in 1847, is the largest independent hard-goods distributor in the world, Lawson claims.
The company distributes hardware and home-improvement products to building material retailers, she says, adding, “We handle pretty much everything you would see in a Home Depot or Lowe’s store with the exception of lumber.”
Post Falls Mayor Ron Jacobson says Orgill has indicated that the workforce number will be significantly higher than 100.
“I’ve heard it will be up to 140 jobs, with starting wages at $15 to $18 an hour on the low end,” Jacobson says.
He anticipates that nearly all of the employees for the Post Falls plant will be hired locally.
“My understanding is they will bring very few jobs with them,” Jacobson says.
Jasper, Ind.-based Kimball Office, which closed its Post Falls plant last year, had about 260 employees in Post Falls when it announced in 2014 that it would transfer its Post Falls production to other facilities.
“It’s difficult to find tenants for a facility of that size, and to find one user for it was a tremendous piece of good luck for us,” Jacobson says.
Guy Byrd, managing director of Spokane commercial real estate brokerage SVN Cornerstone, negotiated the Orgill transaction.
“It was a unique opportunity to acquire a building that fit their criteria,” Byrd says. “There’s not a lot of existing 475,000-square-foot buildings built this well with 30-foot ceiling heights and truck docks.”
Jacobson says Post Falls had the advantage of state and local support in attracting Orgill.
“It was truly a collaborative effort,” he says. “Jobs Plus brought it to our attention and got the city involved. We had meetings before Orgill arrived to figure out how to assist them.”
Other parties putting out the welcome mat on behalf of the Post Falls site include the Idaho Department of Commerce, Idaho Department of Labor, the Kootenai County Board of Commissioners, and the mayors of Coeur d’Alene and Hayden, Jacobson says.
Orgill has qualified for Idaho’s Tax Reimbursement Incentive, which allows certain expanding and relocating employers credits of up to 30 percent on income, payroll, and sales taxes for up to 15 years, he says.
“They have to adhere to a certain performance level as well,” Jacobson says of Orgill.
He says Orgill also will receive a property tax abatement incentive through Kootenai County.
“They will continue to pay taxes currently assessed, but they will get an abatement for the increase (in property value) they will create for a number of years,” Jacobson says.
Since the loss of Kimball as a major employer, Post Falls has seen a net gain in employees, including through a Transamerican Auto Parts Co. distribution center and retail store, Tedder Industries relocation from Hayden, among other moves.
“Our goal is to continue to create and produce more good-paying jobs,” he says.
Orgill has six distribution facilities, including the closest one in Utah.
Orgill’s Lawson says the Post Falls facility will serve its growing customer base in Washington, Idaho, Montana, Oregon, and Alaska. It also will serve three Canadian provinces.
Lawson says the Post Falls distribution facility will be key to Orgill’s plans to expand its customer base in Canada, where the company last year acquired the assets of hard-goods distributor Chalifour Canada.