County in a pickle for Grillo tax abatement

This is an updated story on the Grillo’s Pickles tax abatement, with new information from Greater Columbus Economic Development Corp. President Jason Hester/

Last June, the California corporation that owns the King’s Hawaiian brand announced they will nearly double the number of jobs they intend to bring to northwest Bartholomew County by 2028.

But at the request of the corporation, Irresistible Foods Group, Inc., local officials gave no exact reason why the number of jobs has shot up so dramatically.

“Everything else, except for the identity of the product and naming the subsidiary, was explained,” Greater Columbus Economic Development Corp. president Jason Hester said.

The subsidiary was identified during public meetings only as Project Greenfield.

On Monday, the real identify was revealed. Taylorsville will be home to the next location where Grillo’s Pickles are manufactured. The basic shell of the pickle manufacturing facility should be up by the end of this year, Bartholomew County commissioner Tony London said.

The abatements for $40 million in real estate, as well as $14 million for new equipment, were approved for the Grillo’s facility by the Bartholomew County Council.

Irresistible Foods Group, Inc. estimates the addition of the pickle manufacturing subsidiary in Taylorsville will create 150 jobs by 2028. The blended average salary for Grillo’s employees will be $25.27 an hour, according to Hester.

In contrast, about 147 jobs will be created for the King’s Hawaiian facility with a blended average salary of $29.94 an hour, Hester said.

Combined, King’s Hawaiian and Grillo are expected to save an estimated $4.6 million in abatement deductions, he said. However, the Irresistible Foods facilities in Taylorsville will pay an estimated $5.5 million in net new taxes during their first 10 years of operations, according to Hester.

During an abatement period, new taxes are phased in gradually at a rate of 10% a year. Only in the first year is 100% of the increase in assessed value abated.

Originating in Boston in 2008, Grillo’s pickles are made in a fresh pickling process with no added chemicals or preservatives. They can be differentiated from similar products in that they are made, shipped and sold cold.

 

ORIGINAL STORY

Last June, a California corporation announced they will double the number of jobs they intend to bring to German Township in northwest Bartholomew County.

But at the request of the corporation, Irresistible Foods Group, Inc., nobody explained why the number of jobs was going up so dramatically.

On Monday, the answer was made clear. Taylorsville will be the only community in the country where Grillo’s Pickles are manufactured, Bartholomew County commissioner Tony London said. The basic shell of the Grillo’s facility should be up by the end of this year, London said.

Much of the additional $40 million in abatements for real estate, as well as $14 million for new equipment, that was approved in June will be spent on creating the Grillo’s Pickles line. But London said some investment will expand the output of other Irresistible Food’s products, including King’s Hawaiian bread and rolls.

It will be Grillo’s Pickles that gave the boost that will result in almost 300 jobs being created with an average wage of $29.94 per hour, London said.

Originating in Boston in 2008, Grillo’s pickles are made in a fresh pickling process with no added chemicals or preservatives. They can be differentiated from similar products in that they are made, shipped and sold cold.

It was acknowledged during council, planning and zoning meetings last spring that the company seeking tax abatements was Irresistible Foods, London said. However, the code name Project Greenfield was used to distinguish the Grillo’s line from other foods that will be made at the future food processing facility as early at 2027.

Irresistible Foods had requested that the Grillo’s name and product not be made public until Monday’s issuance of building permits, London said.

Since the council and community was already familiar with Irresistible Foods and King’s Hawaiian from the company’s original 2023 abatements, it wasn’t necessary to specify a brand name during public meetings, London said.

“I don’t like this kind of secrecy,” Bartholomew County Council president Jorge Morales said. “But if a company is bringing hundreds of well-paying jobs here, I will abide by whatever their wishes are.”

Initially, the corporation announced in 2023 that they plan to invest $150 million into a food manufacturing facility, creating 147 new jobs with an average wage of $29.94 an hour. The King’s Hawaiian line could become operational as early as 2027.

During an abatement period, new taxes are phased in gradually at a rate of 10% a year. Only in the first year is 100% of the increase in assessed value abated.

Over the life of the abatement, the future manufacturer being built off County Road 200W, east of the Indiana Premium Outlets, will save an estimated $1.2 million in abatement deductions.

However, the company will pay an estimated $1.1 million in net new property taxes to the county, as well as eventually maintain a $7.8 million payroll in German Township, according to the Greater Columbus Economic Development Corp.