The Fort Wayne City Council has approved an agreement to purchase a 6.4-acre parcel of riverfront property from P-Americas LLC, a subsidiary of PepsiCo Inc. (Nasdaq: PEP), for downtown redevelopment. The city will spend $4.5 million to acquire the property with the hope to attract private investment for the land.
A Pepsi warehouse currently sits on the property, but the beverage and snack maker intends to invest $19 million to build a new facility near Fort Wayne International Airport.
In addition to approving the land purchase, the council also approved a tax incentive on the new distribution center property to help with the relocation.
“Pepsi recognized the opportunity to be a good corporate citizen and maintain our strong presence in Fort Wayne as we have for the past 80 years. We are excited to be able to facilitate the ongoing redevelopment of the riverfront, while retaining all of our existing employees and reinvesting in the community,” said Sean Bishop, vice president of sales for PepsiCo Beverages North America North Division.
Construction of the new Pepsi facility is expected to begin summer 2022 and be completed mid-2023.
The city says the source of funding for the property acquisition will be the Riverfront local income tax rate, which required city council approval.
“The Harrison Street property is among the most strategically-located and valuable sites in the community,” said Fort Wayne Mayor Tom Henry. “The site is large enough to accommodate multiple projects, which will bring more people, businesses, and vibrancy to the north side of the river.”