The Longmont City Council on Tuesday unanimously passed a $6.5 million economic development incentive package for the J.M. Smucker Company on first reading with virtually no discussion.
City Manager Harold Dominguez praised city staff and Longmont Economic Development Partnership officials who hammered out the deal for a $340 million manufacturing facility for Smucker’s Uncrustables product.
Second reading will be Feb. 21.
Dominguez also told the council and the audience that phase one of the facility — projected to bring a 200,000-square-foot space and 250 new jobs to the city — could be bigger than staff originally thought.
“Phase one will be bigger than the numbers we were presented with, so I just want you to know that,” Dominguez said at the start of the presentation about the incentive package from the city.
Phase two of the project would entail a 200,000-square-foot expansion and 250 additional new jobs, according to the agreement between the city and the company.
The deal that the council approved on first reading would give the J.M. Smucker Company approximately $6.5 million in rebates on taxes and permit fees in exchange for the company agreeing to build the facility on land that is in both Weld County and Longmont.
Smucker’s would have to pay its 500 new employees an average of $48,977 annually, which is 105 percent of the annual average wage in Weld County.
Staff projects that before the $6.5 million in rebates, the new facility will generate about $12.34 million in direct revenue to Longmont over 10 years.
Additionally, the J.M. Smucker Company is receiving a Weld County economic development personal property tax rebate that will hold a value of about $2.4 million over 10 years.
Vernon Petty, director of corporate engineering for the J.M. Smucker Company, spoke to council and said the proposed facility would be the company’s first in Colorado and largest capital investment to date.
While the J.M. Smucker Company may be known for Smucker’s jam and jellies, it includes several other household brands, Petty said.
“We’ve been in business almost 120 years now and our purpose is bringing families together for memorable moments,” Petty said. “We have other household brands such as Jif, Crisco, Folgers, Milk-Bones and Kibbles ‘n Bits. So we have a lot of brands in your pantry — or I hope they’re in your pantry.”
Petty said the company wants to move quickly on construction with improvements happening at the site near County Line Road and Ken Pratt Boulevard/Colo. 119 as soon as April and something going vertical as soon as June.
Councilman Gabe Santos gave the lone comment before the vote. He thanked the J.M. Smucker Company for choosing Longmont.
Karen Antonacci: 303-684-5226, antonaccik@times-call.com or twitter.com/ktonacci
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