October 4, 2022
The California Statewide Communities Development Corporation (CSCDC) has provided $8,500,000 of New Markets Tax Credit (NMTC) allocation to Fireclay Tile, Inc. (Fireclay) for expansion and enhancement of the Fireclay Tile manufacturing facility in Aromas, California.
Fireclay Tile is a California-based tile manufacturing firm that was founded in 1986. The firm brought in new leadership in 2009 and, in 2014, Fireclay transformed from a wholesale manufacturer to a vertically integrated tile brand that works directly with architects, designers, brands, contractors, installers and homeowners. This change has led to tremendous growth for Fireclay, and an expansion of the Aromas facility was critical to allow Fireclay to meet its significant demand for product.
The NMTC financing will support expansion and enhancement of the Fireclay manufacturing facility through construction of two new buildings, renovation of existing buildings, purchase and installation of tile manufacturing equipment, and extensive infrastructure work and site improvements. The project will expand Fireclay’s existing approximately 30,000 square foot facility into an approximately 80,000 square foot multi-building manufacturing complex with production, warehouse, headquarters and training space.
The facility expansion is expected to allow Fireclay to quadruple its production and sales by 2025. As a leading employer in San Benito County, the project will result in significant job opportunities for local community residents. The project is expected to create/retain 400 permanent jobs. As a certified Benefit Corporation (B-Corp.), Fireclay is committed to investing in its employees, providing outstanding employee benefits, employee equity ownership and competitive wages.
In addition to the $8,500,000 in NMTC allocation from CSCDC, the project also received NMTC allocation from New Markets Community Capital, LLC. Chase provided NMTC allocation and served as NMTC equity investor for the financing. Santa Cruz County Bank provided a loan for the project.
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