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Economic Development Exemption for Hormel Foods Corporation Expansion

Learn about Hormel Foods Corporation's proposed expansion, adding 384 new jobs and receiving an economic development exemption, with detailed financial benefits and recommendations for approval.

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Economic Development Exemption for Hormel Foods Corporation Expansion

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  1. Hormel Foods CorporationEconomic Development Exemption Office of Economic Development August 1, 2017

  2. Hormel Foods Corporation • Hormel Foods Corporation owns brands Skippy, SPAM, Hormel Black Label Bacon • Owns local Dold Foods facility • Manufacturing sliced bacon • Located at 2929 N. Ohio (near 29st St. N. and I-135)

  3. Hormel Foods Corporation 29st St. N. near I-135

  4. Hormel Foods Corporation

  5. Hormel Foods Corporation • Hormel occupies 82,700 square feet today, 275 employees • Need to expand, has capacity at 2929 N. Ohio • Proposes to add 156,000 sf manufacturing facility

  6. Hormel Foods Corporation • $50,000,000 (bldg) + $82,000,000 (M&E) = $132,000,000 • Add 384 new jobs to existing 275, average annual salary $62,000 (including benefits) • Qualifies for Economic Development Exemption - EDX (manufacturing)

  7. Hormel Foods Corporation • Value of one year tax abatement ($50,000,000 at 80%) • City $326,250 State $ 15,000 • County $293,930 USD 266 $536,830 TOTAL = $1,172,010 *Hormel currently pays approximately $71,000 general taxes

  8. Hormel Foods Corporation CEDBR Benefit/Cost Analysis:

  9. Hormel Foods Corporation • Recommendation: • It is recommended that City Council close the public hearing, and approve first reading of the ordinance granting Hormel Foods Corporation a 100% tax exemption, except for any capital outlay levy assessed by the local school district, on the identified real property improvements for a five-year term, plus a 100% tax exemption, except for any capital outlay levy assessed by the local school district, for a second five-year term, subject to City Council review and authorize the necessary signatures.

  10. Hormel Foods Corporation Economic Development Exemption Office of Economic Development Serving You, In Many Ways, Every Day

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