Frito-Lay seeks bonds for $150 million 'industrial project' - KAIT Jonesboro, AR - Region 8 News, weather, sports

Frito-Lay seeks bonds for $150 million 'industrial project'

(Source: KAIT) (Source: KAIT)
(Source: KAIT) (Source: KAIT)
(Source: KAIT) (Source: KAIT)

Frito-Lay has requested the City of Jonesboro issue bonds for an industrial project that will not exceed $150 million.

Frito-Lay representatives briefly discussed the issue this week with the Jonesboro City Council Finance Committee.

According to a Payment in Lieu of Taxes Agreement filed with the City of Jonesboro, the bonds would help with the development of a "substantial industrial project."

The PILOT Agreement states that the project will consist of "the acquisition and construction of warehouse and manufacturing facilities, infrastructure and improvements and the acquisition and installation of equipment for the preparation, processing, packaging, handling and storage of food products."

Chris Kuechenmeister with Frito-Lay told Region 8 News that the project consists of a 100,000 square foot building expansion at Frito-Lay’s existing manufacturing site in Jonesboro.

"This expansion will be substantially complete by year-end.  In addition to the expansion, site work has recently begun on a new manufacturing line, with support building of approximately 40,000 sq. ft., expected to be completed in 2018," Kuechenmeister said.

The finance committee voted to forward the proposed resolution to the full city council.

Per that resolution, the city will also hold a public hearing on the question of the issuance of those bonds on October 4.

In April 2015, Frito-Lay announced a $45.7 million expansion. That expansion added about 30 new jobs and 80,000 square feet to the company's facility on Highway 18.

Kuechenmeister said right now, potential new jobs for the manufacturing line "have not been scoped."

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