An aircraft maintenance and repair company with a Piedmont Aviation lineage said Thursday it will expand its operation at Smith Reynolds Airport.
Piedmont Propulsion Systems LLC has pledged to create 25 jobs and spend up to $2 million on capital investments over five years as part of taking over a 66,772-square-foot space at 4400-4401 Lansing Drive.
In exchange, Piedmont has been made eligible for up to $52,500 in local performance-based incentives over five years and a $50,000 grant from the One North Carolina Fund.
The company specializes in servicing aircraft for regional airlines, corporations, the military and general aviation. It is based currently at 3817 N. Liberty St., also on the airport campus. It has 31 full-time and four part-time employees.
Sammy Oakley, general manager of Piedmont Propulsion, could not be reached for comment Thursday. Piedmont Propulsion is one of three primary subsidiaries owned by First Aviation Services Inc. of Westport, Conn.
"These are exactly the sort of jobs we want to bring to the Triad and our state," said N.C. Rep. Earline Parmon, D-Forsyth.
"Piedmont Propulsion saw that the policies we have pursued in the past were oriented toward the future, not short-term gain. Those policies created the kind of business climate that made this announcement possible."
The average annual wage for the new jobs would be $34,304, according to the governor's office.
The Forsyth County Board of Commissioners approved up to $21,000 in incentives.
The Winston-Salem City Council approved providing $500 for each job created — up to $12,500 — and up to $19,000 for the capital investment.
The city also approved the company's request for a $100,000 loan at a 3½ percent interest rate to help with buying new equipment and machinery. The loan came from the city's Economic Development Loan Fund.
The company is subject to an incentive clawback provision that includes a 100 percent payback if it ceases operations at the Lansing Drive facility within two years.
According to the city incentive proposal, Piedmont had sales of $9.7 million and a profit of $620,000 in 2010. It had sales of nearly $7.8 million and profit of nearly $1.1 million through the first 10 months of 2011.
The company was founded in the late 1940s by Tom Davis, the founder of Piedmont Aviation Inc. It served as Piedmont Aviation's propeller shop.
Aaron Hollander, chairman and chief executive of First Aviation, said in a statement the company was attracted by the state's skilled work force, a business friendly environment and a government focused on job creation.
"We are very pleased that North Carolina will be a long-term home to an important First Aviation business unit," Hollander said.
Smith Reynolds was facing competition from other local building sites, including at Piedmont Triad International Airport, as well as out-of-state sites operated by the company or First Aviation.
The airport recently regained the Lansing Drive space from US Airways Group Inc., which had not had operations there since 2005, but had maintained a lease.
Mark Davidson, director of Smith Reynolds, said the county Airport Commission is finalizing the lease with Piedmont. He expects them to be in the building by May.
Tom McKim, chairman of the airport commission, said having Piedmont in the Lansing Drive facility not only provides what he hopes will be a stable tenant, but also frees up space at the airport for Piedmont Aviation Components.
"Piedmont Aviation is constrained by space now, so this will allow them to expand their operations, which is a win-win for the companies and the airport," McKim said.
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