December 11, 2020

Phoenix Investors Leases Building to Agritech Company

Phoenix Investors Leases Building to Agritech Company

As reported on Maysville-Mason County Industrial Development Authority

(December 10, 2020, Maysville KY):  The Maysville-Mason County Industrial Development Authority Board (MMCIDA) is pleased to announce Enviroflight and parent company Darling Ingredients, Inc. (NYSE: DAR), will be expanding their commercial black soldier fly larvae (BSFL) production operations in Maysville, Kentucky with an estimated $20 Million investment.  A Kentucky agritech company capitalizing on US-first technology and processes, Enviroflight will nearly double its current employment in Mason County after opening operations in Maysville just two years ago, in 2018.

Enviroflight is currently the only company to commercially produce BSFL insects as an animal feed ingredient in the United States with their first manufacturing facility located in Maysville, KY.  Enviroflight is the leading developer of proprietary technologies which enable the rearing of black soldier fly larvae in a commercially scalable manner.  This innovative and responsible approach represents immense potential within the sizable, billion-dollar global animal feed industry as it provides an environmentally-friendly, sustainable source of high-value nutrients.

Enviroflight opened the first BSFL production facility in the United States, locating in Maysville, Kentucky, in 2018.  Since that time, the Maysville Enviroflight facility has experienced incredible growth and optimization, utilizing superior, world’s first technology and capitalizing on cutting edge agritech innovation.  Today’s Enviroflight expansion announcement will provide the added production space to continue their extraordinary momentum and ascension as the world’s leading BSFL technology company.

Enviroflight’s announced Maysville expansion will equate to more than a $20 Million investment in equipment, technology and an expanded production facility located at 1173 Progress Way.  Located adjacent to their current facility at 1118 Progress Way, Enviroflight will expand into the 173,000 sf building formerly known as the King Burley Building, located in Maysville’s Industrial Park II, and owned by Phoenix Investors, headquartered in Milwaukee WI.  The new facility will almost triple the amount of square footage for Enviroflight’s Maysville operations to accommodate new production and an ever-growing customer demand.  Enviroflight, which has grown from 12 employees at opening to a current staff of 73 people, is expected to add 40 new positions that include Production Techs, Processing Techs, Engineering, Data Analysis and Statistician positions.  Executives with Enviroflight expect the expansion project to get underway in January of 2021 and to be completed by September of 2021.

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment (KBI) program. The performance-based agreement can provide up to $800,000 in tax incentives based on the company’s investment of $19.78 million and annual targets of:

  • Creation and maintenance of 40 Kentucky-resident, full-time jobs across 15 years
  • Paying an average hourly wage of $22 including benefits across those jobs

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

Additionally, KEDFA approved Enviroflight for up to $100,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

In addition, Enviroflight can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.

Kentucky Governor Andy Beshear highlighted the project and the positive impact on Mason County, stating, “As a key contributor to the commonwealth’s agritech industry, it’s a testament to EnviroFlight and Kentucky’s partnership that the company will expand so soon after opening in Maysville.  This project, with its impact on Mason County and the surrounding region’s workforce, will help build a better future for Kentuckians. I want to thank EnviroFlight for growing its presence in the commonwealth, and I expect we will see much more in the years ahead.”

Through the Governor’s AgriTech Initiative, Team Kentucky is working to establish the state as an agritech leader for the nation. The initiative joins Kentucky’s advanced-manufacturing sector with our deep roots in agriculture. It partners Kentucky entities with international players to leverage best practices and technologies. Those efforts will foster innovation and growth in the industry for the long term.

Liz Koutsos, Enviroflight President stated, “We are excited to expand our US operations as the demand for insect-based ingredients continues to grow.  Enviroflight’s concerted efforts to gain US regulatory approval for our products, as well as our core strengths in agriculture, feed manufacturing and the animal nutrition industry, uniquely position us for growth in this exciting industry.”

Koutsos continued, “As an organization, we cannot say enough about the support and assistance from all levels in Kentucky.  From local entities such as Mason County, the City of Maysville, and the Industrial Authority to the invaluable support and guidance received from the state of Kentucky, with representatives from the Economic Development Cabinet, Department of Agriculture, and many others.  Ultimately, this team of local and state support highlights why Maysville, Mason County, and Kentucky are truly open for business.  We are proud to be a part of the Kentucky AgriTech Initiative, as the first commercial-scale producer of black soldier fly larvae in the United States.  We are excited to carry the agritech banner for Maysville, Mason County, and Northeast Kentucky, as a whole.”

Founded in 2009, EnviroFlight produces sustainable insect ingredients designed for animal and plant nutrition with an emphasis on social responsibility and reducing the environmental and financial costs in developing a food supply. The company is a subsidiary of Darling Ingredients Inc., an international producer of organic ingredients used in sustainable protein and fat products, as well as renewable clean energy. Darling operates on five continents, where it collects waste from the agri-food industry, which is repurposed into specialty ingredients, such as hydrolyzed collagen, edible and feed-grade fats, animal proteins and meals, plasma, pet food ingredients, fuel feedstocks and green bioenergy.

Owen McNeill, Executive Director with the Maysville-Mason County Industrial Development Authority (MMCIDA) highlighted the company’s contribution to Kentucky’s burgeoning agritech sector, stating, “The Enviroflight expansion project highlights potential.  Darling and Enviroflight have assembled a team of unbelievably talented individuals pushing the agritech envelope daily.  Today’s announced expansion is yet another milestone in an explosively positive trajectory.  Today is also indicative of the Commonwealth’s focus on agritech and its potential.  Finally, I’m convinced that Enviroflight’s announcement is yet another indicator of the economic groundswell and increasing potential of the Maysville and Mason County region.   Locally, we could not ask for better corporate partners and we’re excited to see what the future holds for Enviroflight.”

Mason County Judge Executive Joe Pfeffer underscored McNeill’s thoughts and also highlighted the company’s unique approach to working closely with the community, stating, “It’s been truly amazing to watch Enviroflight’s growth locally.  Their openness and willingness to partner with local government has paid positive dividends for both.  Mason County receives a phenomenal cutting edge agritech employer while we feel, as locals, we’ve brought valuable ideas and assistance to them.  Liz, Donna, Levi and the Enviroflight Team are always willing to listen to new ideas and solutions, almost making us feel as if we’re part of the team.  We greatly appreciate the investment in Mason County as well as that sense of partnership.”

Maysville Mayor Charlie Cotterill stated, “The City of Maysville is elated with today’s announcement out of Enviroflight.  Anytime a City the size of Maysville can claim the title of ‘US first’, we’ll take it.  The cutting-edge technology that Enviroflight represents is phenomenal.  I’m personally very pleased with the additional, high-paying career-making jobs this announcement will bring to Maysville.  These new agritech jobs will help individuals and ensure they have well paying positions to support their families.  I’m thrilled to see the Enviroflight investment and the addition to our ever growing employment base here in Maysville, Kentucky.”

Phoenix Investors, headquartered in Milwaukee Wisconsin, owns the building in Maysville that Enviroflight will expand into.  Phoenix Investors Executive Vice President Anthony Crivello stated, “We are thrilled to have the opportunity to expand our relationship with Enviroflight.” Enviroflight’s growth trajectory and commitment to Maysville will continue to drive the creation of high-quality jobs to the region.

For more information on Enviroflight, visit www.Enviroflight.net.  To learn more about Darling Ingredients, www.Darlingii.com. 

More information on the Governor’s AgriTech Initiative is available at www.AgriTech.ky.gov.

Additional information on the Maysville-Mason County Industrial Development Authority (MMCIDA) can be found at www.ThinkMaysville.com or www.ThinkMaysvilleKy.com.

A detailed community profile for Mason County can be viewed here.

Information on Kentucky’s economic development efforts and programs is available at www.CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov and LinkedIn.

Read about other key updates, actions and information from Gov. Beshear and his administration at governor.ky.govkycovid19.ky.gov and the Governor’s official social media accounts Facebook, Twitter and YouTube.

Mr. Frank P. Crivello began his real estate career in 1982, focusing his investments in multifamily, office, industrial, and shopping center developments across the United States. From 1994 to 2008, Mr. Crivello assisted Phoenix Investors in its execution of its then business model of acquiring net lease commercial real estate across the United States. Since 2009, Mr. Crivello has assisted Phoenix Investors in the shift of its core focus to the acquisition of industrial real estate throughout the country.

Given his extensive experience in all aspects of commercial real estate, Mr. Crivello provides strategic and operational input to Phoenix Investors and its affiliated companies.

Mr. Crivello received a B.A., Magna Cum Laude, from Brown University and the London School of Economics, while completing a double major in Economics and Political Science; he is a member of Phi Beta Kappa. Outside of his business interests, Mr. Crivello invests his time, energy, and financial support across a wide net of charitable projects and organizations.

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