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File #: 2614-2023    Version: 1
Type: Ordinance Status: Passed
File created: 9/12/2023 In control: Economic Development Committee
On agenda: 12/11/2023 Final action: 12/14/2023
Title: To authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with G & J Pepsi-Cola Bottlers, Inc. (the "Enterprise") for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of the Enterprise investing approximately $18,000,000.00 in real property improvements, the creation of forty-four (44) net new full-time permanent positions with an estimated annual payroll of approximately $2,200,000.00 and the retention of 546 full-time permanent positions with an annual payroll of approximately $27,550,000.00 at the proposed Project Site.
Attachments: 1. 2614-2023 GJ Pepsi - Fact Sheet EZ, 2. 2614-2023 GJ Pepsi - EZA Project Site Map
Explanation

BACKGROUND: The Director of the Department of Development is requesting authorization to enter into an Enterprise Zone Agreement on behalf of the City with G & J Pepsi-Cola Bottlers, Inc. (“G&J Pepsi”, and also referred to as the "Enterprise"). The Ohio Enterprise Zone law Section 5709.62(C) of the Ohio Revised Code authorizes the City to enter into a Council-approved tax abatement agreements between the City and qualifying companies.

In 1925, the owner of the Grand Pop Bottling Company in Cincinnati decided to put the company on the market. Nell and Walter Gross and Esther and Isaac Jarson decided to purchase the company and become equal partners. In 1935, a representative of the Pepsi-Cola Bottling Company called upon the Grosses and Jarsons after having been turned down by several other beverage companies and offered them a Pepsi franchise. Walter and Isaac agreed to try it and put several barrels of concentrates under some steps in the old plant. They did not produce the Pepsi product for several months, but when they did, it began to sell fairly well. Today, G&J Pepsi is a privately owned company comprised of seven franchises, which distribute Pepsi-Cola brand products in Athens, Columbus, Hamilton, Portsmouth, Ripley and Zanesville, Ohio and Lexington, Kentucky. G&J Pepsi is the largest family owned and operated Pepsi franchise bottler. Headquartered in Cincinnati, Ohio, the company operates distribution centers in Chillicothe, and Hillsboro, Ohio as well as Winchester and Harrod?sburg, Kentucky. In 2015, G&J Pepsi established a new production line in Columbus to manufacture its own plastic bottles for use in its soft drink bottling operation. The company distributes Pepsi brand products as well as packages under Lipton, Ocean Spray, Starbucks, and SoBe labels as well as Cadbury (Dr. Pepper) beverages. The entire G&J Franchise employs over 1,600 employees and has over 300 beverage routes.

G&J Pepsi is proposing to invest a total project cost o...

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