A food manufacturing company that promises to bring almost 400 jobs to Wichita will be exempt from taxes on its expansion for at least five years.
The City Council approved the exemption unanimously on Tuesday.
Hormel Foods Corp., which manufactures brands like Skippy peanut butter, Spam and Hormel Black Label bacon, wants to undergo a $132 million expansion to the Dold Foods food plant at 2929 N. Ohio. That’s near 29th Street and I-135 in north Wichita.
The company says it wants to add 384 jobs in Wichita to its existing 275 employees in the next five years. The average salary for the new jobs would be $62,000 including benefits.
The expansion would almost triple the company’s size in Wichita, said Tim Goodpasture, an economic development analyst with the city.
Hormel would receive a 100 percent tax exemption for the expansion for the next five years. In the first year, the exemption would be worth $1.2 million in estimated tax value to the city, state, county and schools.
A second five-year exemption period could be added by the City Council later.
Andrew Nave, the Greater Wichita Partnership’s executive vice president of economic development, said the expansion would help diversify the economy.
“We see this capital investment as not only a key thing for the corporation, but the community as a whole,” he said.