Houchens subsidiary Pan-Oston buys building at industrial park

Wednesday, December 08, 2004

A Glasgow-based subsidiary of Houchens Industries is moving its factory to Bowling Green, bringing 215 jobs and creating 125 more, company officials announced today.

Pan-Oston Inc., a manufacturer of store fixtures and checkout counters, is spending $6.5 million to buy the former Treasure Quest building in Scottys Industrial Park and install its production equipment.

The company has historically made metal fixtures, but is adding wood and has recently expanded its customer base, according to a statement from Pan-Oston CEOs John Kelly and Terry Scariot.

The company lists Wal-Mart, Target, IBM, Sears, Houchens, Stop and Shop, IKEA and Michaels among its clients.

Bowling Green city commissioners revealed the move at last nights regular meeting through two last-minute additions to their agenda. Both items, passed unanimously, provided incentives for the company to come here.

Commissioners gave tentative approval to exempting the company from city property taxes through 2009, with final approval due at the current commissions last meeting in two weeks.

State law allows companies to be exempted from local property taxes for up to five years, city Chief Financial Officer Davis Cooper said. The same has been done for 10 other local companies.

The second incentive will funnel 75 percent of the citys occupational tax on jobs at Pan-Oston back to the company, as has been done for 22 other local firms, according to a memo from Cooper.

Pan-Oston is expected to bring a $33.2 million payroll over five years, he said. The occupational-tax break works out to a $499,000 savings for the company.

The city has only been negotiating with the company for two months, Cooper said.

Tennessee lobbied hard to get the Pan-Oston plant, putting together a much larger incentive package, but the company chose Bowling Green in part because of its local ties, Mayor Sandy Jones said.

Houchens Industries, which bought Pan-Oston in 2002, is headquartered here and company executives live in Bowling Green, including Jim Vance.

Vance, who stepped down in May as head of the agency developing the Kentucky TriModal Transpark adjacent to Scottys Industrial Park took a job as vice president and general manager of Pan-Oston.

Were very appreciative of the support weve received throughout the region, Vance said.

The company is getting standard incentives for the move from the state as well, he said. But he would not detail the contents of that package.

The company will shut down its seven facilities in Glasgow and consolidate those operations in the one Bowling Green building, he said.

Not only will the consolidation improve efficiency, but theres room to grow on the Treasure Quest site, Vance said.

We need to expand, he said. Our business operations are expanding.

The firm, originally based in Canada, came to Glasgow in about 1985, Vance said.

Pan-Oston is a trade name, he said. The company plans to acquire more related businesses and move them to Bowling Green under the umbrella name of Retail Logic, Vance said.

The company searched for a new site in a fairly narrow area, seeking to keep as many local employees as possible, he said.

We draw from 10 counties, Vance said. Moving to Bowling Green should make for a reasonable drive to work for current employees, he said.  Daily News ·813 College St. ·PO Box 90012 ·Bowling Green, KY ·42102 ·270-781-1700