KENDALLVILLE – One of Kendallville’s largest employers is making a major investment in its local operations.
Kraft Heinz will be pouring $30 million into its marshmallow and caramel plant at 151 W. Ohio St.
“It’s great to see they are reinvesting in their facilities,” Kendallville Mayor Lance Waters said.
The Kendallville City Council last week unanimously approved a $10-year tax abatement on the project that will save Kraft-Heinz nearly $1.5 million over that 10-year span.
The investment will be made in new manufacturing equipment and upgrades.
In an abatement, the taxable value of new equipment and buildings is graduated. In the first year of the abatement, none of the investment will result in higher taxes for Kraft Heinz.
By Year No. 10, the company will be paying on 90% of the assessed value of its new improvements.
The investment won’t lead into any additional jobs, according to abatement application documentation, but it will help retain the 338 jobs currently held there. Those 338 jobs have an annual payroll of $23.7 million, according to the application.
To retain that many jobs – it’s exciting,” Waters said. “They have been here forever.”
The city’s Economic Development Advisory Committee voted unanimously on Aug. 11 to recommend approving the 10-year abatement, according to a letter signed by committee President Chelsea Yoquelet.
Be Noble, the Noble County Economic Development Corp., also wrote a letter of support for the project. The letter cited the job retention the abatement would lead to.
Read More: Kraft Heinz investing $30 million in Kendallville operation | Business
