Campbell Soup Co. and Blanchard Valley Port Authority on Thursday took steps enabling Campbell to avoid $1 million in taxes for construction of a distribution center on Findlay’s north end.
The $37.5-million, 741,000-square-foot distribution center will employ nearly 220 when it opens in the summer of 2018, Campbell reported. Construction will start this summer.
Campbell on Thursday bought land south of Hancock County 212 and the McLane distribution center for its own distribution center. That set in motion other steps to save Campbell Soup $1 million in taxes from construction of the warehouse:
Campbell on Thursday leased the land it bought to the port authority. Government bodies like the port authority do not pay sales tax. So, sales tax will not be levied on construction materials for the warehouse, and that will spare Campbell $1 million in sales tax.
Campbell paid the port authority $87,500 on Thursday for its help in the maneuver. When the port authority received that payment, it issued up to $37.5 million in bonds to finance construction of the warehouse. Campbell will pay off the bonds.
Campbell will lease the warehouse from the port authority for four years with no lease fee. After four years, Campbell must buy the building from the port authority for $10,000. When Campbell buys the building, the land lease to the port authority will end.
With rapid change occurring in consumer shopping patterns, retail and e-commerce, Campbell’s Findlay distribution center will be something different for the company.
Campbell has hired DHL Supply Chain, headquartered in Bonn, Germany, to manage and staff the distribution center. DHL specializes in distribution, warehouse management technology and process capabilities.
“Consumers are shopping in new ways, retailers are demanding increased customization and channels are continuing to diversify, especially with the growth of eCommerce,” said Robert Furbee, senior vice president of supply chain at Campbell Soup Co. “To compete and thrive in this environment, we need to enhance our distribution capabilities.”
Over the next two years, Campbell will be developing two other distribution centers which also will be operated by DHL. They will be in the Dallas/Fort Worth, Texas area and Charlotte, North Carolina, region. Campbell will continue to distribute from an existing DHL-managed warehouse in Rancho Cucamonga, California.
Wilin: 419-427-8413 Send an E-mail to Lou Wilin