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Greeley’s TIF Toolbox

Explore Leprino Foods' expansion journey, challenges faced, economic incentives utilized, and the significant impact on Greeley and surrounding areas. Discover the complexities of TIF financing, urban renewal, and site acquisition in the food manufacturing industry.

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Greeley’s TIF Toolbox

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  1. Greeley’s TIF Toolbox EDCC Overview 2017: Oct 3

  2. Urban Renewal Redevelopment District & Tax Increment Areas

  3. Say Cheese! Western Sugar TIF Urban Renewal Case Study

  4. Who is Leprino Foods? • World’s largest manufacturer of mozzarella cheese, supplying such operations as Pizza Hut, Domino’s & Papa Johns as well as individual cheese products through Wal-Mart and other food retailers • Operates plants in the US, including one in Ft. Morgan, and two in the United Kingdom. HQ based in Denver CO • Sought another mid-continent site for new prototype operation

  5. Project Overview: LF Site Criteria • +/- 100 acre site • Reliable water supply • Good transportation access • Industrial zoning for large scale manufacturing • Development incentives to compete favorably with competing Kansas site • Cooperative development review process

  6. Western Sugar Site: Assets • 100 acre: of sufficient size • For sale • Rail Spur and Hwy access • Within GURA Tax Increment District • Adequate supply of dairies nearby • In Enterprise Zone; site and industry eligible for additional economic development incentives (Ent. Zone, State tax credits, etc.)

  7. Western Sugar Site: Issues • Building obsolete, to be removed • Hazardous materials (asbestos) • Oil and gas wells • 800,000cy of waste lime deposit • UP denied rail access • Flood Plain • Airport influence area

  8. Economic Incentives • City: 50% waived sales and use tax (for > $10m in construction + essential job creation) • City: Industrial Water Bank rates (raw water purchase) and redundancy support with wastewater discharge • City & GURA:each owned adjacent parcels; able to sell LF some add’l land for lagoons/treatment • GURA TIF:up to 98% of property tax rebated over 20-yr life of district for eligible site development costs (infrastructure, hazard removal, etc.); was the ‘but for’ incentive, made deal possible

  9. Process • Land acquisition negotiated (Leprino & Western Sugar) • City incentives, water/wastewater incentives & support negotiated through a Development Agreement • Tax Increment Financing negotiated with the Greeley Urban Renewal Authority as part of a Redevelopment & Reimbursement Agreement • Variety of land use approvals • Along the way to the Deal…. • Extensive Problem-solving (lime removal, work around o/g wells) • Site surprises with excavation (new, hot asbestos dump) • The Economy (local bank failure, dairy/ag loans at risk, governmental budget impacts, eve of not-so-Great Recession )

  10. Economic Impact to Area • Projected Leprino investment of $270+ million (1st 2 phases) to generate economic benefits over 20 years of: • City of Greeley: $325.1 million • Weld County: $4.8 billion • Colorado: $10.1 billion • 2017: Company has commenced Phase 3 plant expansion, with an initial investment of $190million, adding to the ~ $600 million already invested, adding over 200k sf of working space to the existing facility

  11. Building Perspective - Scale

  12. Questions ?

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