Kroger seeks tax abatement for $70 million expansion of Tamarack Farms Dairy in Newark
NEWARK — Kroger plans a $70 million expansion of Tamarack Farms Dairy in west Newark but has considered other locations for the project.
Newark City Council’s finance committee approved on Monday an Enterprise Zone agreement with Kroger that provides the company a 10-year, 75% tax abatement on increased property valuation associated with the 35,000-square foot expansion. The full council will consider the agreement on June 21.
Tamarack Farms Dairy, built in 1978, sits on 20 acres on Tamarack Road and has 145 employees. It is the largest fluid dairy in the state and supports about 160 Kroger stores in Ohio and West Virginia.
Mauter told the finance committee Newark is one of three sites Kroger considered for the project, along with Winchester, Kentucky and Murfreesboro, Tennessee.
But, Mauter said, the enterprise zone agreement will ensure the expansion occurs at the manufacturing facility located at 1701 Tamarack Road.
“They have selected Newark,” Mauter said. “My understanding, the selection of Newark is contingent on the enterprise zone agreement. It’s such a great win for the city that they decided to do this expansion.”
Kroger’s application for the enterprise zone states several locations have presented the company incentive packages for the project.
“Our company is experiencing significant reductions in margins associated with our major clients,” the company states in its application. “As such, our ability to expand and continue to remain a viable employer in Licking County is impacted.
“Several other locations, most prominently within the state of Texas, have presented us with incentive packages in an effort to secure the investment and job creation associated with this proposed project. Our ability to retain these job opportunities locally, and consolidate core functions, is dependent upon this incentive.”
Kroger states the incentives would not only retain the 145 jobs and $9.3 million in payroll, but allow it to add six jobs in three years. The company would invest $16 million to build the addition and $54 million to purchase and install new machinery and equipment.
The expansion will allow Kroger to install a state-of-the-art aseptic milk line capable of producing various sizes of half & half creamer, heavy whipping cream, coffee creamers, Carbmaster milk beverage and PET bottles varying in size from 8 to 64 ounces.
The Advocate asked Kroger if it will choose only one location to expand from its options in Newark and in Kentucky, Tennessee and Texas. The Advocate also asked the company if the expansion does not occur here, could the existing facility in Newark move to another location.
Ken McClure, the Kroger regional director for corporate affairs, responded with the following: "At this time, we are conducting due diligence on a potential project in Licking County and have nothing additional to share. I’m happy to reach back out to you should we have something to announce."
The expansion would begin by Sept. 30 and finish by June 30, 2023, the company states. The enterprise zone agreement is between Kroger and the Licking County Commissioners, but Newark City Council will consider a resolution consenting to the agreement.
kmallett@newarkadvocate.com
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Twitter: @kmallett1958
This article originally appeared on Newark Advocate: Kroger pursues tax abatement for Tamarack Farms Dairy expansion
