The firm signed a new lease, which expires year-end 2009, at the 1 Pepsi Way building in Somers. However, the deal will return approximately 170,000 sf of space at the building that is owned by the Witkoff Group in New York City. The deal was reported exclusively on Feb. 22 on GlobeSt.com.
"This is an important success in our effort to keep corporations in Westchester," says Westchester County Executive Andrew Spano. "Connecticut made a major effort to lure Pepsi Bottling away from Westchester. This proves not only that Westchester can be competitive but that the county is still a highly desirable location for corporation headquarters."
The lease extension culminates a six-month process during which time Westchester County's Office of Economic Development, under the direction of Salvatore J. Carrera. The Empire State Development Corp., an arm of the state government, worked to come up with a package to entice Pepsi Bottling Group to stay in Westchester.
Westchester County officials reveal that the Pepsi will be receiving a variety of financial incentives, amounting to $1,668,000 in local assistance and $4,138,500 from the state and Empire State Development. These include the following perks:Westchester County has arranged for $1.6 million in local and state sales tax exemptions; Empire State Development will give a $750,000 capital grant; New York State will give a variety of other tax breaks, including wage tax credits valued at $661,500; tax reduction tax credit valued at $900,00; and a real property tax credit valued at $780,000.
In addition, New York State Electric and Gas will give price reductions that will equal $480,000 over 10 years. Carrera comments that the deal is important not only for the retention of 1,100 jobs.
He said that the county has been forced to deal with the recent news that International Paper and Texaco are relocating their corporate headquarters out of Westchester County.However, he says that both deals involve merger transactions and therefore were not prompted by any negative view of Westchester as a corporate headquarters location.
"This deal (Pepsi Bottling Group) shows that Westchester County is still seen as a quality corporate headquarters location," he says. Pepsi Bottling Group is a separate company from PepsiCo Inc., which is headquartered in Purchase (Westchester County).
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
