Thursday, April 23, 2009

Cincinnati creates account for new Graeter's facility

Cincinnati City Council has voted unanimously to create a capital improvement program project account for a new Graeter's manufacturing facility in Bond Hill.

The account will house a $1.84 million grant from the Ohio Department of Development's Job Ready Sites program that will be used for the $11 million, 28,000-square-foot plant at Paddock Road and 66th Street.

The building, which will include a larger freezer, loading dock, and blend room, will allow Graeter's to extend its nationwide reach by quadrupling its ice cream output to 1 million gallons annually.

Last week, council approved the issuance of up to $10 million of economic development bonds to finance a loan package for the project, in exchange for the company's commitment to retain 68 jobs and to create 30 new jobs over the next three years.

Graeter's will repay the loan over 20 years, at 2 percent interest for the first two years and 4 percent interest for the remaining 18 years, and will purchase the 4.4-acre construction site from the City for $1.

The company has announced that it plans to break ground on the project within the next two months and plans to begin production at the new facility in January 2010.

Offices at its current Reading Road facility will be maintained and will continue to produce candy and baked goods.

Previous reading on BC:
Plans for new Graeter's plant in Finance Committee (4/1/09)