The City of Oak Ridge North has granted a tax exemption to STS Products so that the oilfield products supplier can open a facility in the city. The exemption means STS is not taxed on products that are shipped outside of the state, said City Manager Vicky Rudy.
Rudy said STS Products is constructing two buildings in the Oak Ridge Commerce Park. Rudy said the 30,000-square-foot and 35,000-square-foot buildings could be open and operational in six months.
During a presentation to the Oak Ridge North City Council, Gil Staley, president of the South Montgomery County Economic Development Partnership, provided a presentation that promoted STS Products. Staley said STS will bring 154 "direct and indirect" jobs to Oak Ridge North, while providing about $5.2 million in tax revenue over the next two years.
"STS is the probably the largest company to ever relocate in the city," Rudy said. "It's very significant. The entire business park has been a huge success. The expansion in terms of property and impact on the city is huge."
Rudy said the estimated $5.2 million economic impact is not a direct result of sales or property taxes, but rather through indirect jobs, employees who may move into the city, or those who may shop and eat in the city.
"The impact is always far greater than things you can see right away," Rudy said.
STS Products is based in Houston and has offices in 10 cities around the world.