Packaging Specialties seeks $24 million expansion; city to certify tax-back participation

City staff presented a request to certify Packaging Specialties Incorporated for the Arkansas Economic Development Commission’s tax-back program, saying the company plans a $24,000,000 expansion in Fayetteville that would create 101 new jobs over five years at wages “over $25 an hour.” Devin Howland, speaking for staff, described the tax-back program as a performance-based refund of state and local taxes on eligible construction materials and qualifying equipment during the construction period.

Howland said the program is intended to reduce upfront construction costs and encourage companies to keep investment local. “Packaging Specialties is a long time legacy Fayetteville employer,” he said, noting the company has operated in the city since 1974 and currently supports roughly 250 local jobs, rising to about 350 after the expansion.

Councilors asked no substantive follow-up questions on the item during the agenda session. The certification before the council is a standard part of the tax-back enrollment process; staff framed it as authorizing the Arkansas Department of Finance and Administration to refund city sales tax on qualified purchases if the company meets its performance commitments.

Next steps: the item remains on the consent agenda for the council meeting. If council approves certification at the full meeting, packaging specialty’s participation in the state program will be contingent on the company meeting the performance conditions required by the Arkansas Economic Development Commission.