The Town of Cary is considering giving Kellogg’s more than $200,000 in incentives as the company considers a $19.5 million expansion to its Cary facility off Weston Parkway.
The Cary Town Council will hold a public hearing Thursday, Feb. 11, on the $216,450 incentive grant and may take action.
“Kellogg currently is considering an investment to expand production capacity at our Cary snacks plant,” company spokeswoman Kris Charles said Tuesday in an email. “We do not anticipate in increase in headcount as a result of this potential expansion.”
Charles would not comment on the number of employees at the current location, which produces a variety of snacks.
An additional $19.5 million in the tax base would result in $72,150 in tax revenue, according to town staff. The investment would be paid back within three years.
The incentive would be paid in two installments as the company meets performance milestones, according to the draft incentive agreement. Kellogg’s must invest $19.5 million by Dec. 31, 2017, to receive the full grant.
Grant funds would be repaid if the company does not meet milestones or does not maintain jobs.
If approved, the incentive would be more than the last three grants approved by the Cary Town Council in the past two years, but not nearly the amount of an incentive to MetLife in 2013.
In 2013, the town agreed to grant an estimated $1.9 million to insurance giant MetLife to create nearly 1,200 jobs with an average annual salary of $80,000.
The council also approved $115,000 for DB Global Technology, and $123,700 to HCL to create 1,237 jobs in Cary with an average annual salary of $51,653.
In April 2015, the town approved $23,500 for CBC Americas to bring $1.3 million in capital investments to the area along with 47 jobs with an average annual salary of $85,000.
The Kellogg’s facility once employed about 1,200 people when it was owned by Austin Quality Foods. Keebler Foods bought the plant in 2000 for $250 million and then sold it to Kellogg’s in 2001. In late 2009, the Cary facility had layoffs as part of a companywide reduction in employees.
Kathryn Trogdon: 919-460-2608: @KTrogdon