Warehouse may be built in Zephyrhills

If Sysco Food Service picks a site in the city, it will bring 257 new high-paying jobs.

By MINDY RUBENSTEIN
Published July 7, 2007

ZEPHYRHILLS - Sysco Food Service may open a 300,000-square-foot distribution center in the city, a move that would bring 257 jobs to the area.

The warehouse could hold things like 50-pound bags of flour, high-quality steaks and produce.

Sysco, based in Houston, employs 47,500 people and would offer salaries ranging from $45,000 to $100,000 to those working at the new center.

The warehouse would be located on 60 acres off Sixth Avenue. The other area the company is considering is North Tampa.

Sysco currently operates a distribution center near Orlando and one in Palmetto. The new facility would help serve the area in between, said company spokesman Mark Palmer.

Palmer said it's common for Sysco to ask for incentives when choosing a location.

"We want to get the most favorable deal we can and still be a good corporate citizen," he said.

Sysco is asking for some perks from the city and Pasco County. It wants to go five years without paying property taxes, and it wants more than $2-million in impact fees to be waived.

That comes to more than $5-million that Sysco would save in the first five years.

"Those kinds of tax abatements and incentives are fairly typical. The net benefit in the end is to the community," Palmer said.

The company would contribute about $6-million over the next decade to the city's and the county's tax base, according to information from Sysco.

Palmer expects the company to decide on a location within the next few months.

City Council president Kenneth Compton said he's in the process of reviewing the information, including the incentives proposed by Sysco.

"I'm very excited to have the opportunity to entertain the Sysco growth," he said. "We'll have to look at the short-term costs and weigh it against the long-term benefits. Hopefully, we can reach some sort of positive position for them and for us. They're looking for a nice relationship, and so are we."

To help offset the costs of persuading Sysco to open its facility here, the city may apply for a $750,000 economic development grant from the state.

It would cost Sysco about $61-million to build the facility in Zephyrhills, a city that has been working hard to lure businesses.

"We've been seeking an opportunity to develop our industrial base anyway," Compton said. "This really falls into our long-term plans."

Plus, the high-paying jobs would be great for the city and its residents, he said. "People making good money and spending it in the community -- it really sounds like a find."

The City Council will discuss the Sysco deal and the potential state grant at its meeting at 6 p.m. Monday at Zephyrhills City Hall, 5335 Eighth St.

[Last modified July 6, 2007, 22:10:40]