Komar BrandsApparel Manufacturing & Distribution The ProjectKomar Brands has built a world-class apparel manufacturing and distribution operation over the last century. Today, the company is 50% owned by women, and the Qualified Active Low-Income Community Business (QALICB) will maintain this status. With over 100 brands, a global footprint, and recent growth, the company is looking to expand on its track record of success. Now, as the company looks to meet the demand associated with recent growth and centralize operations onshore, Komar is embarking on a new $26 million project to design and develop a new ecommerce and distribution center in Bryan County, Georgia, which will also do receiving and distribution to retail clients. The world-class facility will require upwards of $5 million in equipment spend and intends to be as compliant with Leadership in Energy and Environmental Design (LEED) Platinum as possible but will not seek actual certification. The company has engaged a local general contractor (GC) to complete the project and are prioritizing using minority subcontractors throughout the process. In addition to the distribution center, a new $5 million logistics company will be created to pull Komar containers and provide services to other companies, including military clients. Not only will this new 765,000-square-foot facility bring critical operations back onshore, but it will also support the creation of 296 quality jobs upon stabilization. Economic Growth OpportunitiesWith a workforce at Komar Brands that is 70% women on average across all locations, and wages ranging from $16 to $20 hour, this project will meaningfully impact the community. These wages are in line with the living wage of $17.94 and well in excess of the per capita income for the low-income community (LIC) of $9.43. Moreover, the vast majority of these jobs will be accessible, with the highest credential for new jobs being a forklift certification. All jobs come with a comprehensive benefits package, including healthcare, retirement and paid time off (PTO). The Komar team has also utilized a bonus program for distribution center employees, offering up to an additional 6% of annual wages. As a pillar of its collaboration with Bryan County, Komar has established a partnership with Central Georgia Technical College to provide training for all employees hired at the facility. Internally, the company has developed Komar University to promote upward mobility. The culmination of these efforts is a new project that will catalyze equitable opportunities for countless residents in the area. The CommunityThe warm weather and proximity to Savannah make Bryan County, GA, a destination for many. This affinity is reflected in the population growth. Bryan County’s ever-growing and vibrant community boosts the sixth fastest growing county in the nation and the fastest growing county in Georgia, according to the 2020 census. Over the last decade, the county has experienced a growth rate of 31%, which far surpasses the national average of 7.4%. This growth has not come without challenges. The unemployment ratio is 1.69 times the national average. While the median salary is north of $70,000, the rise in population leads to the need for increased access to quality jobs, or there is a risk of many new residents being left behind. The HistoryThe company was founded over a century ago, in 1908, around the guiding principle of ‘one reputation, real values,’ which continues to guide the company today. Komar Brands is a trusted partner bringing deep expertise and a personalized approach to each aspect of its operations. As such, the company has become a global leader in apparel design, sourcing, manufacturing and distribution. The company has demonstrated a history of creativity, innovation, customer service and social responsibility. Komar Brands was the first apparel company to introduce nylon and rayon fibers as stable figures in 1946. Additionally, the sponsor has completed a new markets tax credit transaction previously and given generously in all the communities they operate. This culture of innovation and the development of products consumers and the community love have led the company to experience tremendous growth. Our AnalysisWhile Komar Brands has a history of success, this project pushes the boundaries of what they have completed domestically. Due to the added cost of doing business in the U.S. and the inflationary environment, the project far surpasses the original estimate of the cost to complete the project. They have maxed all the traditional sources, including debt, equity and state incentives, yet a $7 million gap persists, which can only be filled by NMTC equity. |
TOTAL PROJECT COST: NMTC MARKETS TAX CREDIT (NMTC) ALLOCATION: FINANCING COMPLETE: COMMUNITY DEVELOPMENT ENTITY (CDE): NMTC INVESTOR: ADDRESS: CENSUS TRACT: HIGHER DISTRESS CHARACTERISTICS: |
