11-APPROVE ABATEMENT REQUEST OF CAMPBELL SOUP

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 08/22/2012 Council Date: PEDC Steve Gilbert, Executive Director 11. 08/27/2012 RECOMMENDED MOTION: Approve abatement request of Campbell Soup. PoLicY IssuE(s): This abatement request complies with the abateinent policies, guidelines and criteria approved by the Paris City Council on August 13, 2012 in Resolution 2012-072. This tax abatement helps maintain and enhance the commercial and industrial economic and employment base of the Paris area far the long- term interest and benefit of the City of Paris and its citizens. BACKGROUND: Campbell Soup Supply Company LLC, (Campbell) headquartered in Camden, Ncw Jersey, has determined it is in thcir best interest to invest $45,400,000 in real estate and equipment at their Paris, Texas plant to install a new product line described as follows: • Rcady-to-eat soup line, including preparation, blending, filling/chilling, packaging and finished goods warehouse. • Refrigeration equipment and infrastructure to support the required project chiller, conditioned manufacturing, prod uct/i ngredi ent storage and refrigerated dock spaces. • Ingredient preparation equipment, including hand scaling cquipment, extractor for bulk frozen ingredients, 4 frozen ingredient and 2 dry ingredient batching stations and fresh cream/milk handling system. • Prcmix systems, including emulsion and thickener systems. • Blending ccll, including 4 blending kettles complete with ingredient delivery and blending control systems. • Filling arca, including cup tiller, bulk pouch filler, and single scrve pouch tiller. • Product chiller with infeed mechanism for pouches and cups. • Packaging arca, induding the following for pouchcs: carton erector, manual casepacking station, checkweighing station and case sealer; and the following for cups: 2 product accumulators, overcapper, labeler, sleever, casepacker; and paletizer for pouches and cup products; All-interconecting conveyance. • Refrigeratcd finished goods warehouse with gravity flow i acking, including dock with dock doors and exterior paving. Campbell estiinates this new product line and associated technologies will create 68 new jobs over thc lifie of the agreement, and Campbell ' this agreement. agrees to retain sufticient einployment levels to efficiently operate and suppon its Paris plant during the term of The total economic benefit to Campbell of the proposed 7-Year, 100% tax abatement is $2,884,710. BOARD/COMMISSION RECOMMENDATION: Approve abatement request as proposed. EXHIBITS: Resolution ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $ ❑ Department Report E Resolution Budgeted Amt. $ ❑ Presentation ❑Ordinance y'I'D Actual $ ❑ Public Hearing ❑ Other Acct. Name Acct. Number FISCAL NOTES: Citv of Paris Revised 2/04/08 ~ - 49