Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Pactiv LLC equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of up to three (3) years.
Pactiv LLC is one of the largest manufacturers and distributors of food packaging and foodservice products, supplying packers, processors, supermarkets, restaurants, institutions and foodservice outlets around the world. Since the company’s founding in 1965 as Packaging Corporation of America, the company has focused on producing and distributing high-quality foodservice packaging products. Pactiv product lines today include custom and stock foam, plastic, aluminum, pressed-paperboard, PE coated board, and molded-fiber packaging. Pactiv supplies every major foodservice retailer and distributor in North America, including McDonald’s, Wendy’s, Burger King, WalMart, Kroger, and Tim Horton’s.
Pactiv is proposing to consolidate assets into one manufacturing location as a result of excess capacity in the company’s manufacturing footprint. The consolidation will increase production capacity for the company’s existing operation located at 2120 Westbelt Drive, Columbus, Ohio 43228. Pactiv will invest approximately $4.5 million to purchase equipment valued at approximately $700,000, decommission and transport that equipment to the project site from other facilities, and transfer over 50 product lines into the facility. Pactiv will retain 120 full-time permanent positions with an annual payroll of approximately $5,349,103 and create 58 new full-time permanent positions with a new annual payroll of approximately $2,165,120.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Jobs Growth Incentive with Pactiv LLC equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of...
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