A new land development deal will let West Valley City keep cashing in on Frito-Lay's chips.
Frito-Lay Inc., a producer of corn chips and other snack products, will pay about $4 million over the next 15 years as it develops 27 acres of land in the city's West Ridge Commerce Park. The company already occupies 20 acres at 4700 S. 6301 West in the park.John Patterson, West Valley's city manager, said the deal was approved late last year and it means good things for the city's future.
"They're a great company, solid financially, with no national competitor," Patterson said. "They will provide good, family-sustaining jobs for the citizens of West Valley City. . . .
"It was a company that we sought, and we were thrilled when they came (in 1994). We're even more thrilled now."
When Frito-Lay opened, its building occupied 160,000 square feet and employed 350 people. Local company officials referred questions about future expansion to corporate headquarters in Dallas, and officials there could not provide specifics about growth plans.
But Patterson said the additional land should last the company for years and it should mean more jobs for West Valley.
"They needed this land in order to have an ability to expand long-term," Patterson said. "This will probably be as much as they'll ever utilize at this site."
The land Frito-Lay is getting was in the city's redevelopment agency, he said. That means Frito-Lay will not pay for it with out-of-pocket cash but through compensation to the RDA over 15 years. The tax increment revenues will probably be about $4 million in that time, Patterson said, giving a return to the agency of about $85,000 per acre when computed in present value dollars.
"We call it an ADL, agreement to develop land, that they enter into," Patterson said.
"Here's other evidence that a redevelopment agency translates into jobs and family security for the city and for the state of Utah."
The tax increment revenues could be used to retire bond debt at West Ridge, he said. "In an RDA area, the money you generate goes back to continue the cause of RDAs, which is to get jobs and expand the tax base."
The additional acreage is perfect for Frito-Lay, Patterson said, because it includes a rail spur.
And he said he hopes the chipmaker's move could spur further development of the commerce park.
"We hope that this will lead to another manufacturing company coming just south of them," Patterson said. "So long as it's clean and has the same corporate citizenship mentality, then we'd love to have them come."