The New Albany City Council has voted to proceed with a $7 million economic incentive package in hopes of convincing General Mills Inc. (NYSE: GIS) not to close its Pillsbury facility in the city. The News and Tribune reports the company has not made a commitment to staying open, even if the incentives are approved. Council voted 5-2 to move forward with the package. It would still need further approval from the council and the New Albany Redevelopment Commission before becoming official.
Originally Posted January 24, 2015
New Albany, Ind. — Today, Mayor Jeff Gahan called a special meeting of the New Albany Common Council for Tuesday, January 27th at 7:30pm.
Mayor Gahan's staff and City Council appointments, working in conjunction under the recently established joint executive and city council committee to explore possible economic incentives and initiatives for Pillsbury/General Mills, have submitted a resolution to the City Council that will allow up to $7 million in bond proceeds for the modernization of the plant, including the purchase and installation of new manufacturing equipment, subject to the plant remaining in operation in New Albany.
“We are putting our best foot forward by reminding General Mills of all the reasons why they chose New Albany 55 years ago,” stated Mayor Jeff Gahan.
Pillsbury is the 5th largest employer in the City of New Albany. In fiscal year 2014, General Mills had net sales of $19.2 billion, and have paid stock holders dividends for over a century.
“The City is submitting what we believe to be a competitive incentive package,” stated City Councilman and joint committee member Scott Blair. “What we are offering we feel like we can reasonably afford.”
“Losing these good jobs would genuinely be a huge loss for the families of the employees and the community, one that we want to prevent,” stated City Councilman and joint committee member Bob Caesar. “It will be difficult to replace the value of these jobs in our community.”
“We have assembled a business retention and factory-modernization package for our friends at General Mills to consider,” stated Mayor Gahan. “Our goal is to keep the New Albany facility in continuous operation for as long as possible.”
Source: City of New Albany