ANDERSON — Nestle USA is planning a $200 million additional investment in its Anderson facilities.
The Anderson City Council on Thursday will be asked to approve a preliminary declaratory resolution to provide a 70% tax abatement for seven years for the expansion of the Anderson plant.
The council will be asked to set Jan. 9 for final approval of the requested tax abatement.
The Nestle USA investment is in the amount of $200,050,000 for the purchase and installation of new equipment.
The new investment is expected to create 30 jobs with an annual payroll of $2,250,000. The average hourly wage is $36.06 with benefits.
Nestle first announced it was locating in Anderson in 2006 with an initial investment of $359 million and the creation of 300 jobs. This is the fifth expansion of their Anderson facilities.
“In a time when many companies are scaling back their investment due to uncertainty in the global market, I am thrilled to see Nestle continue to make substantial investments in their Anderson facilities,” Anderson Mayor Thomas Broderick Jr. said. “Nestle is a great community partner and we look forward to working with them for many years.”
Broderick said the tax abatement of 70% was a negotiated agreement that was fair and reasonable.
“That’s consistent with what we have been doing in recent years when it comes to a tax abatement,” he said. “Nestle has a large investment in Anderson and this shows their commitment to our community.”
Broderick said Nestle will be paying 30% in taxes that would not have been available without the planned investment.
“This is great news for the city as we continue to move in the right direction,” he said. “There will be more announcements about business expansions and new investments in the future.”
Greg Winkler, executive director of the Anderson Economic Development Department, said since locating in Anderson Nestle has invested approximately $1 billion in its facilities and employs more than 800 people.
He said Nestle USA will pay more than $11 million into the tax increment financing district over 10 years.
The tax increment financing is a method used as a subsidy for redevelopment, infrastructure and other community improvement projects.
The local taxing units continue to receive property taxes based on the assessed value prior to any development.
The tax increment financing revenues are received by the Anderson Redevelopment Commission, which oversees how those funds are utilized.
The Anderson facility produces Coffee Mate, non-dairy creamer, and Boost energy drinks.