Allen Foods Announces Decision to Build Manufacturing Facility in Topeka
07-May-2010Greater Topeka Chamber of Commerce
May 7, 2010
Allen Foods has confirmed its decision to build a new manufacturing facility in Topeka, Kansas on a 20-acre site in the Central Crossing Commerce Park in south Topeka. The Company, which produces fresh baked goods, will build a state of the art commercial bakery and create in excess of 50 new jobs in the area. The company’s capital investment in Topeka will exceed $30 million.
Allen Foods is part of the Bimbo [pronounced BEEMbo] Bakeries USA family of companies, a leading commercial baker in the United States and part of the world leader in the baking industry, Grupo Bimbo. The company manufactures baked goods for all eating occasions and the Topeka facility will focus providing fresh, high quality bread products for the local market.
“We are very excited to be coming to Topeka,” said Dick Bay, Regional Vice President of Operations for Allen Foods. “We are familiar with the community and the work ethic, skill and commitment of people who live and work in the area. We are going to build a great place to work, focused on the safety of our associates, the quality of our products and service to our customers.”
“Allen Foods represents another great international addition to the diverse mix of employers who continue to choose Topeka/Shawnee County,” said Doug Kinsinger, president and CEO of the Greater Topeka Chamber of Commerce/GO Topeka. “This will be a state-of-the-art high technology facility which will provide quality wages and attractive benefits.”
GO Topeka, the economic development arm of the Greater Topeka Chamber of Commerce has worked with Allen Foods to develop plans for the facility. An incentive package offered by GO Topeka involves performance-based cash incentives in addition to the land in Central Crossing Commerce Park. In addition to the land which is valued at $600,000, GO Topeka will provide an average performance-based cash incentive of $4,721 per job for up to 52 employees. The average wage will be $39,710 plus benefits.
According to economic impact projections over the next 10 years, the new facility will create 137 direct and indirect jobs, resulting in roughly $64.2 million in salaries for direct and indirect workers and $44.7 million in taxable sales and purchases in Shawnee County. In addition, the city of Topeka is projected to receive $858,357 in net benefits and Shawnee County projected for $255,255.
“Allen Foods will be a great addition to our corporate community and will continue the growth of the food processing sector,” said Steve Jenkins, senior vice president economic development. “The company has a stellar reputation and we are proud that Topeka was selected for this important facility.”
All incentives are subject to approval by the Joint Economic Development Organization (JEDO) which oversees the proceeds from the county-wide half-cent sales tax for economic development approved by the citizens of Shawnee County. “The Allen Foods project is a tremendous example of the partnership we have in Shawnee County for economic development,” says Shawnee County Commissioner Ted Ensley and chair of JEDO. “Through the sales tax dollars generated from our citizens we are able to provide incentives and compete regionally and nationally for such projects.”
Allen Foods will be seeking tax abatements from Shawnee County.
“We’re excited that Allen Foods has decided to establish a new facility in Topeka,” said Kansas Secretary of Commerce Bill Thornton. “The company found Kansas to be a great fit, thanks largely to the state’s central location, strong workforce and business-friendly policies. We look forward to a long and productive relationship with this great organization.”
Allen Foods is eligible for the following incentives from the Kansas Department of Commerce to assist in their new business location in Kansas: forgivable loan, workforce training, sales tax exemptions on construction, machinery and equipment, and corporate income tax credits for job creation and capital investment. Kansas was competing with Missouri, Arkansas and Oklahoma for this new business.
“Once again, the KC region’s central location, dynamic workforce and willingness to be a long-term partner with the customer put us in a position to win a major manufacturing operation. The fact that Allen Foods will build a green field facility shows a strong commitment this market. We celebrate this great news with our partners in Topeka, the State of Kansas and our entire OneKC region.” Bob Marcusse, president and CEO, Kansas City Area Development Council.
The company and the Topeka economic development team worked closely together as Allen Foods considered other locations. “The City of Topeka made our choice easy,” Bay said. “The team clearly demonstrated that they wanted us to build in this City. We are anxious to get started.”
Allen Foods expects to begin construction in the coming weeks and plans to have baked goods from the new facility in the market within twelve months.