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$22M Redevelopment Keeps Jay's in City

CHICAGO-The potato chip and snack food maker will get $4.5 million in tax increment financing to offset the cost of renovating and expanding its operations at 825 and 1001 E. 99th St. The snack maker's properties totaling 221,600 sf were previously acquired by JFA Real Estate LLC for $3.3 million.

By Mark Ruda | Updated on January 10, 2006

CHICAGO-Despite overtures from neighboring Indiana, the reincarnated Jay’s Foods wanted to keep its manufacturing operations on the South Side. It will do so with the help of $4.5 million in tax increment financing, which will help pay for a $22.4-million renovation and redevelopment of two buildings at 825 and 1001 E. 99th St.

In addition to a sale of the company through bankruptcy, the potato chip and snack maker’s properties totaling 221,600 sf were acquired by JFA Real Estate LLC for $3.3 million. Jay’s Foods Inc. will lease those facilities for at least 10 years as part of the tax increment financing deal, which obligates the company to keep at least 350 employed at its 99th Street operations.

The redevelopment includes building a warehouse, eliminating the need to store snack foods in trucks parked on its 15-acre site. The overhaul will result in the need to spend 40% less on operations there, company officials say. The outdated and inefficient facilities were among the reasons the previous Jay’s was forced into bankruptcy, city officials say.

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