Romeoville OKs tax abatement for food company expansion
By Brock A. Stein For The Herald-News September 6, 2012 8:12AM
Updated: October 10, 2012 6:16AM
ROMEOVILLE — Village trustees approved a tax abatement for Aryzta LLC, a food manufacturing company.
The five-year, 50 percent abatement assists with the company’s expansion and construction of a new facility at 1045 W. Crossroads Parkway.
Aryzta is a global food company with brands including Otis Spunkmeyer, Lebrea Bakery and Great Kitchens, a specialty bakery with a manufacturing plant at 300 Innovation Drive in the village. That location employs 130 locally and another 500 temporary workers.
The new 22-acre site will house a 360,000- to 450,000-square-foot facility that is expected to generate 270 new jobs.
The project is expected to cost about $100 million with $35 million in construction and the remainder in production investment.
Mayor John Noak said the tax abatement will have a long-lasting, positive impact on the community, noting the millions of dollars being invested in the village.
“You just don’t see manufacturing facilities of this nature come your way very often,” Noak said.
He said the project would add highly valued manufacturing jobs in the village.
Village Administrator Steve Gulden said that typically his staff doesn’t recommend tax abatements but the manufacturing project would help spur further economic development.
“It’s a win-win for everybody,” said Gulden.
The abatement is projected to be worth $250,000, economic development director Steve Rockwell said.
Under the conditions of the agreement, Aryzta will be required to continue operating its manufacturing facility on the site for a number of years subject to penalties. The total amount abated each year will be equal to 50 percent of the total taxes due for the property. Total taxes abated aren’t to exceed 10 years or $4 million under the agreement.
In addition to the new jobs from the Aryzta project, the village is expected to net another 200 new jobs with the construction of a new 138,000-square-foot Sam’s Club and adjacent gas station on a 13.3-acre lot.
The new warehouse store will be built near an existing Walmart near Weber and Airport roads.
The infrastructure and parking lot construction on the site is 90 percent complete, and construction is expected to begin in spring 2013 with a nine-month construction window.
Trustee Ken Griffin urged the developers to create walking paths for residents coming from the Grand Haven subdivision near the proposed site.