Explanation
BACKGROUND: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Pactiv Corporation (Pactiv) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of four (4) years. The company will invest approximately $380,000 to increase production capacity at 2120 Westbelt Drive, create 43 new full-time permanent positions and retain 130 full-time employees.
Pactiv was founded in 1999 and is a well-known leader in the consumer market for foodservice/food packaging products. The company manufactures and distributes its products through 43 manufacturing and 9 distribution facilities in North America. Pactiv derives over 80% of sales from markets in which the company is in the top two for market-share position. The company's Hefty brand includes slider storage bags, disposable tableware, waste bags and disposable cookware. The company was purchased by Reynolds Group Holdings Limited in late 2010 and is now a privately held company.
Pactiv is proposing to consolidate assets into one manufacturing location as a result of excess capacity in the company's manufacturing footprint due to the recent merger with Reynolds. The company has considered Texas, Illinois and Ohio for the consolidation. The Columbus site is located at 2120 Westbelt Drive and is currently used for manufacturing. The consolidation will increase production capacity for the company's pressware division.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with Pactiv Corporation equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of four (4) years in consideration of the company's proposed investment of $380,000, the creation of 43 new permanent full-time positions and the retention of 130 existing jobs...
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