PB Community Impact Fund provided $8.25 million of New Markets Tax Credit (NMTC) allocation to Two Rivers Lumber Company, LLC (Two Rivers) to finance the construction and equipping of a sawmill that manufactures dimensional lumber from southern yellow pine in Kellyton, Alabama. The Project created 132 high-paying jobs in a rural low-income community.

 

Prior to the Project, Two Rivers only operated out of a facility near Demopolis, AL. However, due to capacity constraints at the Demopolis facility, Two Rivers undertook the Kellyton Project to meet the increasing demand for its lumber products.  NMTC Financing was crucial to the Project’s ability to move forward given the unforeseen infrastructure expenses totaling over $8 million and the high costs associated with upskilling the local workforce to operate the advanced sawmill equipment.

 

Kellyton exhibited a clear need for the accessible, high paying jobs created by the Project. According to the US Census Bureau, only 10.6% of Coosa County residents aged 25 and older hold a bachelor’s degree or higher. Therefore, roughly 90% of the county’s residents depend on access to jobs with educational attainment requirements no greater than a high school diploma. In addition, Coosa County’s 18.1% poverty rate further evidenced the need for the jobs created by the Project. On top of high wages, these jobs provide a comprehensive benefits package, including health insurance, a retirement savings plan, paid vacation, and a 5% annual bonus.

 

To recruit and train local job seekers, Two Rivers partnered with Alabama Industrial Development Training (AIDT). AIDT and Two Rivers worked to create a workforce development program specifically tailored to Two Rivers’ operating needs, including recruitment and training services, employment screening, a dedicated Project Manager, leadership development, a fleet of mobile training units for on-site use, maintenance assessments, and robotic and PLC automation training. Through the program’s services, new and existing employees have access to a comprehensive training program for industry specific procedures and machinery, as well as numerous career advancement opportunities within Two Rivers. 

 

The Project has received significant support from community leaders across the local, state, and federal levels. U.S. Representative Mike Rodgers stated that the Project “has the potential to change the economic landscape of Coosa County by diversifying its rural economy, providing highly skilled jobs to citizens, and adding a much-needed boost to the tax base.” According to Alabama Governor Kay Ivey, the Project “will have a significant impact on Coosa County and cast many economic ripples throughout the region.” Finally, Ellen McNair, Secretary of the Alabama Department of Commerce, said that the Project “means new opportunities and a brighter future” for the local residents and low-income communities of Kellyton and Coosa County.