NEWS - Wirtz Beverage
Wirtz Beverage says no to Bloomington, yes to Lexington |
February 22, 2013 5:30 pm • By Mary Ann Ford | [email protected]
BLOOMINGTON — Wirtz Beverage Illinois plans to build a nearly $8 million warehouse and distribution center in Lexington rather than on Bloomington’s west side.
It will close its Peoria warehouse on Chanute Road and will relocate jobs to the Lexington facility, which is expected to be open in 2014, said Guy Chipparoni, spokesman for Wirtz Corp., the parent company of Wirtz Beverage Illinois and Wirtz Realty.
Wirtz is under contract to purchase 14 acres of property in the Hansen family land trust at the northeast corner of PJ Keller Highway and Interstate 55, Chipparoni said. The property is in a tax increment financing district.
“I’m happy Wirtz sees potential in our community,” said Lexington Mayor John Mohr.
Mohr said the town has spent the past several years trying to make Lexington a business-friendly community — approving a tax increment financing district in 2011 and making $4 million in school renovations last year.
The Lexington City Council has yet to approve a proposed redevelopment agreement with the company, but it will involve property tax sharing, Mohr said. Chipparoni said the split will be 75 percent for the company and 25 percent for Lexington.
The dollar amount will not be known until the developed property is assessed.
Mohr said the site already has sewer and water service. Wirtz will be responsible for building a road to its buildings, which will be about 800 feet from Interstate 55, he said.
Bloomington and McLean County officials learned of the decision Friday morning.
While Bloomington City Manager David Hales said he was disappointed Wirtz didn’t choose the site near the Interstate Center, “it’s very positive news they decided to locate in McLean County. I think it will be an asset for the county; keep jobs in the region.”
His comments were echoed by Ken Springer, director of research and client services at the Economic Development Council of the Bloomington-Normal Area, who worked with Wirtz on a proposed tax abatement plan for the west Bloomington site. The EDC was not involved with negotiations with Lexington.
“I’m tickled to death they are still in the county,” Springer said.
Seven government entities that receive tax money from the west Bloomington site — including Bloomington, Normal and McLean County Unit 5 — approved abating property taxes for Wirtz for five years — saving the company about $955,000 over the life of the abatement.
The biggest impact would have been for Unit 5, which abated $114,429.
Unit 5 Superintendent Gary Niehaus was surprised to hear of Wirtz’s new plans but said he was glad the company still will be in the neighborhood.
“Jobs and opportunities we thought would be coming to McLean County are still coming to McLean County,” he said. “I would feel differently if it was Peoria or Springfield.”
McLean County Board Chairman Matt Sorensen said he welcomed Wirtz to McLean County when he received the call Friday.
“I know Bloomington and the west side looked at the potential development as a shot in the arm and to that end, it’s unfortunate,” he said. “But I’m glad it’s in McLean County.”
Hales said there is other interest in the west Bloomington site.
Chipparoni said Wirtz chose the Lexington site because it is right off Interstate 55, has clear visibility from the Interstate, is near other highways and is in an existing TIF district. He said new jobs would be become available through attrition and future growth.
Last year Wirtz opened a new $70 million, 650,000-square-foot training and distribution center in Cicero.
It will close its Peoria warehouse on Chanute Road and will relocate jobs to the Lexington facility, which is expected to be open in 2014, said Guy Chipparoni, spokesman for Wirtz Corp., the parent company of Wirtz Beverage Illinois and Wirtz Realty.
Wirtz is under contract to purchase 14 acres of property in the Hansen family land trust at the northeast corner of PJ Keller Highway and Interstate 55, Chipparoni said. The property is in a tax increment financing district.
“I’m happy Wirtz sees potential in our community,” said Lexington Mayor John Mohr.
Mohr said the town has spent the past several years trying to make Lexington a business-friendly community — approving a tax increment financing district in 2011 and making $4 million in school renovations last year.
The Lexington City Council has yet to approve a proposed redevelopment agreement with the company, but it will involve property tax sharing, Mohr said. Chipparoni said the split will be 75 percent for the company and 25 percent for Lexington.
The dollar amount will not be known until the developed property is assessed.
Mohr said the site already has sewer and water service. Wirtz will be responsible for building a road to its buildings, which will be about 800 feet from Interstate 55, he said.
Bloomington and McLean County officials learned of the decision Friday morning.
While Bloomington City Manager David Hales said he was disappointed Wirtz didn’t choose the site near the Interstate Center, “it’s very positive news they decided to locate in McLean County. I think it will be an asset for the county; keep jobs in the region.”
His comments were echoed by Ken Springer, director of research and client services at the Economic Development Council of the Bloomington-Normal Area, who worked with Wirtz on a proposed tax abatement plan for the west Bloomington site. The EDC was not involved with negotiations with Lexington.
“I’m tickled to death they are still in the county,” Springer said.
Seven government entities that receive tax money from the west Bloomington site — including Bloomington, Normal and McLean County Unit 5 — approved abating property taxes for Wirtz for five years — saving the company about $955,000 over the life of the abatement.
The biggest impact would have been for Unit 5, which abated $114,429.
Unit 5 Superintendent Gary Niehaus was surprised to hear of Wirtz’s new plans but said he was glad the company still will be in the neighborhood.
“Jobs and opportunities we thought would be coming to McLean County are still coming to McLean County,” he said. “I would feel differently if it was Peoria or Springfield.”
McLean County Board Chairman Matt Sorensen said he welcomed Wirtz to McLean County when he received the call Friday.
“I know Bloomington and the west side looked at the potential development as a shot in the arm and to that end, it’s unfortunate,” he said. “But I’m glad it’s in McLean County.”
Hales said there is other interest in the west Bloomington site.
Chipparoni said Wirtz chose the Lexington site because it is right off Interstate 55, has clear visibility from the Interstate, is near other highways and is in an existing TIF district. He said new jobs would be become available through attrition and future growth.
Last year Wirtz opened a new $70 million, 650,000-square-foot training and distribution center in Cicero.