- Paris Flash
- Real Estate
The Paris City Council tonight will hear the details of a new $26.2 million investment by Campbell Soup at its Paris plant to accommodate plans to begin manufacturing single-serve beverages in 5.5-ounce, 8.4-ounce and 11.5 ounce aluminum containers.
The single-serve beverages will consist of red juices, Fusion, potential for teas, and potential for carbonated products, company officials say.
Campbell Soup will fund the capital improvements at a cost “equal to or in excess of” $24,222,812, including acquisition and installation of the building modifications, machinery and equipment, and $2 million in related expenses.
Steve Gilbert, executive director of the Paris Economic Development Corporation, will ask the council tonight to approve abatement of taxes over a seven-year period beginning on Jan. 1, 2014, and continuing through Dec. 31, 2020.
Gilbert will follow this appearance with similar requests to the Lamar County Commissioners Court and the Paris Junior College board of regents.
For all three agencies, the total tax abatement from 2014 through 2020 would be $1,483,172 — $683,004 by the City of Paris, $550,608 by Lamar County, and $249,560 by PJC.
The lone exception would be the North Lamar Independent School District, will receive a projected $1,479,625 in taxes over the seven years. State law prohibits public school districts from abating taxes.
At the end of the seven-year period, Campbell Soup would begin paying taxes on the line — $73,648 to the City of Paris, $59,372 to Lamar County, $26,909 to PJC, and $159,547 to North Lamar ISD for a total of $319,576 in 2021 taxes, Gilbert says.
The PEDC has approved a half million dollars in incentives — $250,000 for workforce training and $250,000 for new jobs and capital investment.
“This is new capital investment and will not negatively impact existing property tax revenues,” Gilbert said.
It’s the second major expansion in a matter of months at the Paris plant. In late 2012, Campbell Soup announced a $45 million reinvestment in its Paris soup plant to include new technology and a new product line.
At the same time, the company also announced the Paris facility would absorb production from the closure of a Sacramento, Calif., plant.
Last year’s reinvestment in the Paris plant was cited in a recent report from the office of Gov. Rick Perry as No. 7 on the state’s “Top 10 List” for the food processing industry in 2012-2013.
Here is Campbell Soup’s proposed plan of work on the new single-serve juice line:
Engineering, Design & Construction: To prepare the site in the existing building where the new equipment will be located, including procurement of equipment, infrastructure and utilities modifications, and electrical and mechanical installation.
Building Modifications: Includes floor, wall and celiing finishes, as well as some structural changes to the building to 1) segregate the single-serve production from remaining manufacturing spaces; 2) provide a sanitary environment for the single-serve products; and 3) support specific pieces of manufacturing equipment.
Container Delivery: Depalletizer for purchased aluminum containers and dedicated container lines by diameter to filling operation.
Prep Operations: Multiple ingredient handling systems and hold/pre-blend tganks, and independent tomato paste standardization ssystem.
Bleeding Operation: 1,000-gallon blend tank, supprted by pre-blend, hold and feed tanks.
Sterilization Process: Shell-in-tube sterilizer and hot water sets, together with two plate and frame sterilizers and hot water sets.
Filling Operation: 103 Solburn waterfall filler and closer for 5.5-ounce and 8.4 ounce cans, and a 103 Solburn waterfall filler and closer for 11.5-ounce cans.
Cooling Process: Pasteurizer to provide for future carbonated capability.
Packaging Operation: Pre-printed shrink film multi-packing equipment, a tray-packer and shrink tunnel; and a palletizer; and stretch wrapper equipment.
Here is the year-by-year impact of the abatement request:
2014 – Asset Value, $21,300,442 in modification and equipment, $1,376,301 in real estate. Tax Abatement: $256,065 (City, $117,919; County, $95,060; PJC, $43,086). NLISD Taxes Paid: $255,453.
2015 – Asset Value, $19,605,596 in modification and equipment, $1,341,893 in real estate. Tax Abatement: $236,540(City, $108,927; County, $87,812; PJC, $39,801). NLISD Taxes Paid: $235,973.
2016 – Asset Value, $18,207,527 in modification and equipment, $1,307,485 in real estate. Tax Abatement: $220,363 (City, $101,478; County, $81,807; PJC, $37,078). NLISD Taxes Paid: $219,837.
2017 – Asset Value, $17,396,590 in modification and equipment, $1,273,077 in real estate. Tax Abatement: $210,819 (City, $97,082; County, $78,264; PJC, $35,473). NLISD Taxes Paid: $210,314.
2018 – Asset Value, $16,476,904 in modification and equipment, $1,238,669 in real estate. Tax Abatement: $200,044 (City, $92,121; County, $74,264; PJC, $33,659). NLISD Taxes Paid: $199,566.
2019 – Asset Value, $15,189,092 in mofification and equipment, $1,204,261 in real estate. Tax Abatement: $185,113 (City, $85,245; County, $68,721; PJC, $31,147). NLISD Taxes Paid: $184,671.
2020 – Asset Value, $14,259,513 in modification and equipment, $1,169,853 in real estate. Tax Abatement: $174,228 (City, $80,232; County, $64,680; PJC, $29,316). NLISD Taxes Paid: $173,811.
By CHARLES RICHARDS