Clovis city officials approved a $3 million interest-free forgivable loan Wednesday to a beauty supply manufacturing company that could create up to 350 jobs in the area over the next five years.
Chase Gentry, executive director of Clovis Industrial Development Corp., said Beauty Health and Science Innovations hopes to be open by April.
“We are very excited about moving to Clovis and the positive impact it will have on both our company and our customers,” said Brian Sperber, CEO of Beauty Health and Science Innovations, during a phone interview.
“Clovis offers a tremendous workforce that we believe will play a key role in supporting our continued growth.”
Gentry said the company hopes to begin renovating an existing Clovis facility in January, but would not specify a planned location because a sale agreement was still being negotiated.
Beauty Health and Science Innovations will be created from two existing makeup manufacturers, COBE Chem Labs and Z. Bigatti, and will do white label (generic) manufacturing, Gentry said.
Sperber said the company will manufacture liquid cosmetics for skin care, color cosmetics and make-up, topical prescription drugs and over-the-counter drugs. The company will also research and develop new products in Clovis.
“It’s a great opportunity when we have company like this come in,” Clovis Mayor Gayla Brumfield said. “I remember back in the day we weren’t able to do the things that we can do now so it’s a real tribute to this community.”
Jobs and wages
Gentry said the average annual wage will be $31,624, with 80 percent of the jobs in production. The entry level production positions will start at $25,000, he said. Gentry said there will be around eight management-level positions that will pay between $65,000 and $250,000, and a number of administrative positions that will pay between $40,000 to $75,000. All positions will offer benefits.
Gentry said about six to eight outside professionals including chemists and engineers will be brought to Clovis but 98 to 99 percent of the company’s employees will be picked from the local market.
Dana Olson, CEO of EcoDev, a site selection and economic development analysis company, said a vast majority of the jobs such as shipping, warehouse, accounting and line production will be trainable positions.
According to Gentry, a forgivable loan is a monetary incentive dedicated to economic development; one-eighth of cent of the tax on purchased goods in Clovis goes to a fund that can be used to invest in industrial projects, which amounts to about $900,000 a year.
“The goal (of a forgivable loan) is to provide quality jobs for the citizens with benefits and above average pay,” Gentry said. “And bring in new money to the economy to create other jobs and ultimately make the area a better place to live.”
Gentry said the loan has a structure that allows CIDC to better protect the public’s investment of these funds.
“As long as they’re injecting money through salaries and payroll into the economy, then they would reap the benefit of that tax money that they’re going to take advantage of,” Gentry said.
The entire loan is contingent upon job creation. The loan comes with a large penalty the company would have to pay along with the loan’s total if it were to close the Clovis facility.
“It’s totally different when you put the obligation on the company. I think that has worked out better on the administrative side in this process,” Gentry said.
According to Gentry, Beauty Health and Science Innovations surveyed property in Florida and Texas before selecting New Mexico to house its facility. The Florida and Texas communities also offered competitive incentive packages to Beauty Health and Science Innovations, he said. Gentry said the company is looking to set up shop in a small community like Clovis where it can be a major player in the community.
“Another thing that I think is a selling point for us here was that we’re centrally located to the east and the west and we also have access to raw materials that come in by rail,” Gentry said.
“This company I think will diversify our economy. It’s going to bring in a little different industry than what we’ve had in the past. I think ultimately it’s about helping the citizens and those who need a better job or better pay, looking for benefits for their family. We can talk about the money all day long but if somebody can have a better life or raise their kids better, then in my opinion, that’s what all this is about,” Gentry said.