Zephyrhills has incentives to lure new Sysco facility

The city would refund $2-million in taxes and $760,000 in fees to secure 250-plus jobs.

By MOLLY MOORHEAD
Published July 24, 2007

ZEPHYRHILLS - A hefty incentive package attached to a proposed Sysco Food Service distribution center gained initial approval from the City Council on Monday night.

The board voted unanimously to accept a deal that includes refunding more than $2-million in city taxes and $760,000 in impact fees and utility connection fees to Sysco over a decade. Officials from Pasco County are coordinating further incentives that enrich the total package to about $5-million. The County Commission is scheduled to consider it in a meeting today.

Sysco wants to build a 393,000-square-foot plant on 62 acres off Sixth Avenue, east of the CSX railroad tracks. The center would employ 257 people with annual salaries between $45,000 and $100,000. The company says it's a total investment of almost $70-million. In return for coming to Pasco, Sysco is seeking an incentive package of a level not seen before in this small city.

Many of the details are still being worked out. On Monday, state Sen. Mike Fasano, R-New Port Richey, alerted officials to new possible funding sources: a $10-million governor's pool for transportation infrastructure, and another state grant for infrastructure in rural cities.

Zephyrhills has its sights set on a $700,000 economic development grant to offset some of its costs.

City officials toured a similar Sysco plant in Palmetto in May. On Monday, they presented pictures of a palm-lined entrance road, sprawling warehouse buildings and parking lots busy with trucks.

City planner Todd Vande Berg called it a "class-act facility."

Not all the 257 jobs would be new. Sysco says 132 employees would be transferred from other facilities. But within 12 months, 125 positions would be added, plus 50 more after 36 months, according to county documents.

Zephyrhills has been in competition with other sites, including north Tampa and Sumter County.

County Attorney Robert Sumner said the incentive deal amounts to a commitment by Sysco to choose Zephyrhills.

"They have the commitment as soon as we sign it," he told council members Monday night.

The package of incentives will come back to the City Council on Aug. 13 for final approval.

[Last modified July 23, 2007, 21:59:19]