Yakima County Development Association - Paragon Films

Paragon Films

Development Association Helps Oklahoma Based Plastics Manufacturer Locate New Facility in Union Gap

Paragon quoteParagon Films needed a facility on the West Coast to serve growing customer demand for their plastic stretch wrap.  The company wanted to find an existing building to support their growth and looked at facilities in Oregon, Washington and Nevada before settling on a building in Union Gap.   We got involved with the company's expansion project when local realtors Mike Abrams and Russ Redfield brought Paragon's management to our office to learn about how we could help support their new facility.  At that time the company was interested in a facility in Terrace Heights.  We immediately started helping Paragon with permitting and development issues only to learn that the building would not ultimately meet their needs.

Paragon left town at this point and our local support team worried that we would lose them to another community.  Company representatives told us that they had identified a workable building in Nevada and that they were doing another look for other facilities that could meet their needs.  Luckily for us our local realtors showed the company a building in Union Gap that met their needs.  Paragon's team tapped our office's help again with permitting issues and we also helped them address their needs for rail service and additional electric power capacity.

manual-stretch-film-53015-2337603The company started operations at the new facility in June 2013 and they have approximately 20 employees currently.  Over the next few years Paragon Films will be adding more production lines and employees.  The company ultimately projects to employ over 50  people at its Union Gap facility.

Paragon's Return On Investment for the Yakima Valley - the impacts of Paragon Film’s operations ripple throughout the Yakima Valley.  The following discussion details the direct and multiplier benefits of the company's operation within Yakima County’s economy

Construction Phase. Investments made by Paragon Films total approximately $20.0 million in building construction and new equipment. The realized local portion is estimated at about $1.5 million (in current economic values). This in turn stimulated $0.7 million in additional related business revenue, including revenues from local employee spending. The total increase in local construction related business revenue approximately $2.2 million.

Figure 21.        Construction Phase Economic Contribution of Paragon Films


Economic Benefits of Construction

Impact Category




Capital Investment




New Building




Construction Jobs




Construction Payroll




Average Wage




 Source:     Cascade Planning Group – based upon IMPLAN Input-Output model for Yakima County.

Construction and equipment procurement activity generated 20 jobs directly, and an additional 10 indirect and induced jobs due to economic multiplier effects. This employment generated a total of $1.3 million (in current economic values) in construction related wage income.

Annual Business Income. Paragon Films produces an estimated $242.7 million of output in Yakima County. Paragon Films and their employees also purchase goods and services from other businesses in the county. This additional activity represents the indirect multiplier (or spin-off) effect. The dollar volume of the indirect business activity is estimated to be $114.1 million annually.

Annual Taxable Sales & Property Values. An estimated $1.4 million of employee payroll is spent on local taxable goods and services. Employees also spend a portion of their income on housing. This analysis assumes employees spend one-third of their income on housing, which is estimated at a net present property value of $24.8 million.

Annual Employment & Income. Paragon Films directly employs 200 workers. These workers are estimated to receive about $5.4 million in wages annually (not including benefits), for an average wage of about $27,000 per year.

This economic activity is estimated to support an additional 620 jobs throughout the economy countywide. The total employment impact is 820 jobs. Total annual wages, including economic multiplier effects, are estimated at $25.9 million.

Figure 22.        Annual Operational Economic Contributions of Paragon Films


Annual Economic Benefits

Impact Category




Business Revenues




Number of Jobs




Total Payroll




– Average Wage




Taxable Retail Purchases


Supported Housing Values



Source:      Cascade Planning Group – based upon IMPLAN Input-Output model for Yakima County.

Tax Benefits. In addition to the private sector economic benefits, the expanded business activity also generates increased taxes for state and local government.

Paragon Films directly invested $20.0 million in business capital. In addition, income spent on housing from employees equates to an estimated $24.8 million in property values. Taken together, these activities support approximately $527,700 in property tax revenues to state and local government.

Retail spending by employees also generates sales taxes. As noted above, an estimated $1.4 million is spent annually at local retail stores. This retail spending is estimated to generate $22,400 per year for local governments and $91,000 annually to the state – for a combined total of $113,400 in annual state and local sales tax revenue. Another $121,500 in one-time sales taxes from the capital investments is generated for local and state governments.

Figure 23.        Fiscal Benefits Associated with Paragon Films

Tax Generated



Property Taxes:    
Business Capital Investment  


Employee Housing Values  


Supported Assessed Value  


Average Property Tax Rate  


Property Taxes  


Retail Sales Tax:    
Business Capital Investment


Employee Taxable Retail Purchases  


Sales Tax Rate



State & Local Sales Taxes



Source:      Cascade Planning Group.

[i]       Multiplier effects with this analysis include what are technically termed as indirect effects (from added business spending) and induced effects (from added household spending).

"A lot of the leaders here in Yakima are very probusiness and make it easy to do business in Yakima." - Lisa Shields-Long, Co-President, Shields Bag & Printing