(WNY News Now) The County of Chautauqua Industrial Development Agency (CCIDA) has offered Wells Enterprises, Inc. substantial incentives for the third phase of its $425 million reconstruction of its Dunkirk production facility, which promises innovation in the ice cream business and job creation.
The Board of Directors of the County of Chautauqua Industrial Development Agency (CCIDA) authorized incentives for Wells Enterprises, Inc. during its meeting on November 19, 2024. The incentives, which include a Sales Tax Exemption and a Payment In Lieu of Taxes (PILOT) arrangement, will help the business build its new, cutting-edge facility in Dunkirk. For the corporation, this most recent phase of CCIDA incentives (Phase III) comes after two earlier waves (Phase I in 2019 and Phase II in 2023). All three phases work together to help Wells retain about 380 full-time employment while creating 270 new ones.
The Ferrero Group’s Wells Enterprises announced plans in August 2023 to completely renovate its current manufacturing site in Dunkirk, which is situated at 1 Ice Cream Drive. The facility is crucial to the company’s efforts to grow its nationwide manufacturing network for the Blue Ribbon Classics, Halo Top, Bomb Pop, and Blue Bunny brands. In addition to supporting the facility’s ongoing objectives for expansion in novelty and packaged ice cream, this Phase II project was expected to more than quadruple the facility’s current production output and open the door for future innovation. The Phase II project is expected to generate 250 additional employment by 2028 and cost $250 million in total.
In addition to the previously planned renovation project, Wells said earlier this year that it would construct a brand-new, cutting-edge, 133,000-square-foot Segregated Compound Facility (SCF), which would house a new chocolate factory and provide more manufacturing capacity. With the capacity to operate a 15-line facility by 2028, the SCF would be the first of its kind in the US ice cream industry. By 2030, this Phase III project is expected to generate 20 new employment at an estimated cost of $175 million. The project is expected to generate 150 temporary construction employment.
The City of Dunkirk, Dunkirk School District, and Chautauqua County are the impacted taxing jurisdictions that will receive payments totaling $2,241,980 from the CCIDA on Tuesday, which also offered a 10-year PILOT for the project to assist ensure Phase III can proceed.
Between Phase II and Phase III, the additional facility raises the project’s overall cost to $425 million. Announced in 2019, the project’s Phase I included $87 million in capital improvements to the current Wells plant, including the construction of new land to house a $7 million power substation.
We are extremely enthusiastic about Wells’ future and how this Dunkirk expansion will contribute to our goal of dominating the US ice cream market. For their steadfast support of our expansion, we are deeply appreciative of the State of New York, Chautauqua County, and the people of Dunkirk. Above all, this demonstrates the dedication and leadership of each and every member of our team in Dunkirk. This is genuinely made possible by their enthusiasm, determination, and operational competence, according to Liam Killeen, CEO of Wells Enterprises.