Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Genpak LLC. The Ohio Tax Credit Legislation (Section 718.15 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
Genpak LLC (Genpak) is a leading manufacturer of single use food service packaging. Headquartered in Glenn Falls, New York, the company has been in business since 1969. Presently, the company has 16 facilities in the United States and Canada, including an existing facility in Columbus, at 800 Kaderly Drive on the City's west side. Genpak produces the widest assortment of "to-go containers" in the industry, being best known for Styrofoam hinged containers.
Genpak's food service containers include plastic, foam and laminated dinnerware, salad and soup bowls, supermarket trays, and bakery and ovenable products. Genpak's customers include Sysco, Performance Food Group, Dean Foods and US Foodservice.
Genpak's Columbus facility produces food containers for KFC, this facility's largest customer. Genpak's manufacturing process consists of processing raw materials into sheets of plastic, which are then stamped into various food containers. The Columbus facility is Genpak's only facility that produces the ovenable line of food packaging.
Due to increased business, Genpak needs to expand in order to add equipment for an additional product line. The company is proposing to purchase, renovate and move its operation into a building at 845 Kaderly Drive, across the street from its current facility. The new facility would add an additional 37,000 square feet to accommodate additional equipment, warehousing, shipping, and employee parking.
Genpak is also considering its Louisville, KY and Scottsburg, IN facilities as possible sites for this expansion.
This legislation is submitted as an emergency order to...
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