Northwest Herald

Packaging company gets incentives to locate ‘forever home’ in Woodstock, agrees to add 35 jobs

The city of Woodstock unveiled a new logo Feb. 12, 2024.

Action Packaging will be moving its operations to Woodstock – with a little help from the city.

The Woodstock City Council on Aug. 19 signed off on a redevelopment agreement with the company – which focuses on packaging and supplies for the health care, industrial and food service sectors – for a site at 1191 Lake Ave.

The company plans to have 40 employees to start “and continue building on its strong reputation for service, innovation and supply chain reliability,” city officials said in a news release.

But the redevelopment agreement requires 35 new jobs to be created in order for the company to receive city reimbursements, Woodstock Economic Development Director Jessica Erickson said, adding that Action Packaging’s goal is to create more jobs than that but, being “risk-averse,” the company was comfortable with committing to 35.

Action Packaging President Sean Cwynar told the City Council that the business has been in DuPage County the past 45 years but has headquarters in Woodstock, and he is from McHenry County.

“This is a big move for us,” Cwynar said, adding that he is “confident” the 35 employee number will be 100 or more in the coming years.

Haley Cwynar, CEO and owner of the company, said: “Our team is extremely happy to have found our forever home in Woodstock. The support of Mayor [Mike] Turner, Jessica Erickson and [McHenry County Economic Development Corp. Executive Director] Mark Piekos was critical for us choosing to relocate to Woodstock and make this large investment in the community. We are excited to grow alongside Woodstock and be an active member in the community.”

The city will offer an incentive package to the company, reimbursing it for 17% of eligible project costs up to $1.2 million, through a tax-increment financing district.

Eligible costs include “acquisition, necessary repairs, substantial renovation and other expenses permitted under the TIF Act,” according to city documents.

Turner, who was absent Tuesday when the vote was taken, said in the release: “The city of Woodstock is proud to welcome Action Packaging as a valued addition to our business community. I am pleased they have chosen Woodstock for consolidated operations and that the company will repurpose an existing facility within the city. ... Woodstock remains committed to being the premier destination for businesses, residents and visitors.”

The project has to be complete by Dec. 31, and Action Packaging has to maintain at least 35 net, new full-time equivalent jobs. Officials will check compliance through annual certifications of job counts, according to city documents. The agreement runs through Dec. 31, 2042, or until the reimbursement cap is hit, according to the agreement.

City officials estimated that Action Packaging was investing $7 million into the project, including $6.6 million for property acquisition, $300,000 in hard construction costs and $100,000 in soft costs. The company also is working on getting $1.5 million in environmental remediation funding to “remove existing contamination and eliminate a long-standing barrier to redevelopment,” according to city documents.

City officials said Action Packaging is growing nationally and was recently named one of 50 fastest-growing privately held companies in the Chicago area by Crain’s Chicago Business. Officials added that the company made the Inc. 5000 list “as one of the fastest-growing companies in the country for 2024 and 2025.”

“Action Packaging’s investment in Woodstock showcases the strength of our regional manufacturing sector,” Piekos said. “Their decision affirms the talent, connectivity and business-friendly environment that McHenry County offers. MCEDC was pleased to work alongside the city of Woodstock to bring both new jobs and fresh momentum to this facility.”

Claire O'Brien

Claire O'Brien is a reporter who focuses on Huntley, Lake in the Hills, Woodstock, Marengo and the McHenry County Board. Feel free to email her at cobrien@shawmedia.com.