DeKALB – In a significant development for the local economy, Kraft Heinz's $400 million facility in DeKalb has encountered a setback that will push its opening date back by two years to 2027. This delay has left both company representatives and City of DeKalb officials tight-lipped about the causes. The 775,000-square-foot automated distribution center was announced in July 2023 with promises of bringing around 150 jobs and an early 2025 opening. However, as revealed through public records requests, it won't be ready until at least 2027.

City Manager's Perspective

City Manager Bill Nicklas shed some light on the situation, stating that there was a pause due to a design conversation that was ongoing. He emphasized that he wasn't privy to the details but that this was the information he had been given. This delay has understandably raised questions among the local community and stakeholders.

Distribution Center's Significance

Once completed, this distribution center is expected to play a crucial role in Kraft Heinz's operations. According to the company, it will handle more than 60% of their dry goods distribution to North America. This shows the importance of this facility in the company's supply chain and its potential impact on the local economy. It will bring significant economic activity and job opportunities once it is up and running.

Email Exchange Insights

Shaw Local News Network obtained records of an Oct. 10 email exchange between DeKalb Mayor Cohen Barnes, Nicklas, Lynsey Elve (Kraft Heinz's director of global corporate communications), and Sarah Doran (associate director of state government affairs at Kraft Heinz). In this email, Doran stressed the company's commitment to completing the build. She wrote that the parties involved are working to address the issue and they expect to open the facility sometime in 2027. This shows that Kraft Heinz is actively working towards resolving the delay and getting the project back on track.

Impact on Tax Incentives

Nicklas also addressed the impact of the delayed opening on tax incentives. He stated that it will not affect the tax incentives that may be owed to the company. Tax breaks were approved for the development before it was announced, and after the first year of a full assessment, Kraft Heinz will become eligible for a 50% property tax abatement for 15 years. This provides some relief to the company and shows the local government's support for the project.

Enterprise Zone Benefits

Kraft Heinz is also in DeKalb County's enterprise zone, which offers corporations incentives to invest in the area. Because of this, the company may be spared from paying some of the sales tax on construction materials. This further reduces the financial burden on Kraft Heinz and makes the project more attractive. Nicklas expressed his satisfaction with the resumption of construction and the company's energetic pursuit of the project. The area around the tall portion of the structure continues to be worked on, indicating that progress is being made.