PALESTINE — Palestine is competing with two Central Texas communities for a water bottling company which could open for business as soon as the fall and initially create approximately 40 jobs.   After emerging from closed session during a meeting Monday night, the Palestine City Council authorized the Palestine Economic Development Corp. to execute an agreement with Mountain Pure, LLC to construct a local facility.

Little Rock, Ark.-based Mountain Pure, LLC produces and markets Mountain Pure Water, a bottled water, and fruit drinks. Earlier in the day, Brian Malone, executive director of the PEDC, addressed Anderson County commissioners, indicating that Palestine was competing with McGregor and Hillsboro for the prospective business.

Malone said the business would initially create “at least 40 jobs” and possibly as many as 100 jobs within “four or five years.”  Average salary for those jobs would be $29,000 annually, according to Malone, with the lowest paid positions starting at $12 an hour. The business would also offer its employees health care and profit sharing plans, he added.

Mountain Pure is on a “super-tight time frame” on the project, with Malone saying the company desires to be making product in its new location by mid-October.  At Monday’s commissioners’ meeting, however, Malone did not indicate when the company hoped to make its decision.

The business’ initial capital investment will be “well over $7.5 million,” according to the PEDC executive director, indicating its building would cost approximately $1.2 million and plant equipment around $6 million.  Malone also pointed out the possible new business does not carry any environmental baggage.

“This industry is as clean as it gets,” Malone said. “There’s not any pollution, not any odor.”  Mountain Pure estimates its daily water usage will fall between 160,000 and 250,000 gallons per day which will not place any significant stress on the city’s capabilities, Malone said. 

“This is really a small drop in the city’s capability,” Malone told commissioners.  On a peak day, Palestine’s total water usage hits approximately 5 million gallons, according to Malone.

As part of its incentive package, Malone said the PEDC plans to offer:

• Land for the project at Willow Creek Business Park.
• $200,000 in job creation incentives.
• Infrastructure improvements.
• Water and sewer at a reduced rate.
• Five-year tax abatement.
• Expedited permitting.
• Drilling of wells to serve as backup.

Malone explained the five-year tax abatement was based on a “scoring system” which placed the prospective business in that category.  If the business elects to come to Palestine, it would not pay taxes the first two years; get a 75 percent abatement in the third year; a 50 percent abatement in the fourth year; and a 25 percent abatement in the fifth year.  The commissioners’ court is expected to vote on the abatement program during an upcoming meeting.