New $4.3M warehouse in Alexandria asks for tax help
Potential occupants of the warehouse include Bimbo Bakeries, Nott Companies
ALEXANDRIA – A project to build a $4.3 million, 32,000-square-foot warehouse is seeking tax help from the city.
At its Monday, May 22 meeting, the Alexandria City Council scheduled a public hearing to consider the tax increment financing request from Goodneighbors – 2410 Building LLC. The parcel that’s being developed is located at 2410 42nd Avenue on 4.65 acres of land, northwest of SERVPRO.
The warehouse would be a Butler steel building. Goodneighbors' TIF application lists two potential occupants:
- Bimbo Bakeries USA, the largest commercial baking company in the U.S. delivering bread, bagels, buns, English muffins and sweet baked goods. It has 20,000 associates across the U.S. working in bakeries, sales and distribution centers, on routes and in support functions, according to its website. Some of its brands include Thomas, Sara Lee, Little Bites and Bays. Bimbo Bakeries is part of Grupo Bimbo, the world’s largest baking company with operations in 34 countries.
- Nott Companies, an employee-owned manufacturer of fluid power products and systems, industrial power transmission products and systems, and custom rubber fabricated products.
With TIF, the taxes on the property are frozen at the current amount for a certain period of time, in this case nine years because it is an economic district, not a housing district. The difference between the existing tax and the tax after the development is used to help pay for some of the project costs.
The city benefits because property is being developed that otherwise would not have been improved. Also, the value of the property will increase, adding to the city’s tax base.
The project, according to Goodneighbors, would create at least three new full-time permanent jobs.
If approved, Goodneighbors would receive an estimated $800,000 in tax increment financing, which would be used to offset higher new construction costs and financing in order to make the project’s leasing rates competitive, according to the company.
The public hearing was set for Monday, July 10 during the council’s regular meeting.
The application lists Robert Thompson and Ted Christianson as the major stockholders or principals. They said the project will continue the long-term development of the city’s industrial park and add to the tax base when the TIF period expires.
If the city approves the TIF, the state requires that a business subsidy agreement must also be approved and a public hearing for the subsidy is also required. That public hearing will take place during the July 10 meeting as well.
Warehouse construction is expected to start at the end of July and be finished by the end of the year.