General Mills is getting a $326,000 tax break over five years for "modernizing" its factory, according to the Rutherford County Chamber of Commerce.
This tax incentive comes six years after General Mills received $2.9 million in tax incentives over five years (from 2015-2020 for those keeping count) to expand its existing facility in Murfreesboro. This was half of the company's real property tax burden for the five-year span. The factory 2015 factory expansion cost $253 million and added 117 jobs.
The 2021 payment in lieu of taxes plan (PILOT) "discounts the personal property tax for a few years on the proposed new $65 million investment. This is expected to yield over $2 million in tax benefits while abating $326,000 over the first five years, yielding a 6.3:1 benefit-to-cost ratio. After that, the company would be paying full taxes on this investment. Again, this is new property tax revenue that is not yet on the tax rolls," explained Kristina Troglen, senior director, Communications & Marketing for the Chamber.
General Mills announced an investment in its Murfreesboro manufacturing facility today, securing their continued growth in Rutherford County, Tennessee.
“With production facilities around the world, we are pleased that they chose to reinvest in Murfreesboro,” said Bill Jones, chairman of Destination Rutherford. “General Mills commitment will ensure that we will keep 1,000 well-paying jobs and the resulting tax revenue in our community.”
The company will use the tax break to offset the $65 million it plans to spent at the facility, with a focus on technology and equipment improvements. This investment will also help the plant’s operations become more efficient to meet increased consumer demand.
“Middle Tennessee, and particularly Rutherford County, continues to partner with employers on programs that benefit existing companies as well as attract new companies to drive growth in the region. This investment will allow our Murfreesboro plant to remain competitive in the marketplace,” said Dave Tincher, Plant Manager, General Mills Murfreesboro Plant.
“General Mills has been an incredible corporate citizen in Murfreesboro for many years, providing high-paying jobs, responsible environmental stewardship and committed community service,” said Mayor Shane McFarland. “We are honored that the worldwide company is making a significant reinvestment in our growing community.”
About General Mills
General Mills' brands includes household names such as Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Yoplait, Annie’s, Wanchai Ferry, Yoki and more. Headquartered in Minneapolis, Minnesota, USA, General Mills generated fiscal 2021 net sales of U.S. $18.1 billion. In addition, the company’s share of non-consolidated joint venture net sales totaled U.S. $1.1 billion.