$1M incentive deal for plant OK’D
Facility near
The Denver City Council approved a $1 million incentive package on Monday night designed to help global beverage giant Pepsi Co. move into a state-of-the-art manufacturing plant out by Denver International Airport.
The money will only be awarded when the company meets agreed-upon goals at the still conceptual facility, such as a $250,000 payment awarded when it employs at least 350 people there and can document training costs for those workers.
Councilwoman Candi Cdebaca argued Monday night that the agreement was unnecessary.
Pepsi Co. brought in $79.5 billion in revenue in 2021, according to its year-end financial report, a 13% increase over 2020. Its board of directors has authorized $10 billion in stock buybacks that will be carried out through February 2026.
“Pepsi is not necessarily a group that needs a million dollars to stay in Denver and they are well on their way to completing this move with or without this incentive,” Cdebaca said.
The 1 million-square-foot facility would occupy 150 acres of land off east of Tower Road near DIA, according to a city staff presentation. Technically a project from Pepsi subsidiary Bottling Group LLC, it is a $400 million investment, according to the staff with the Denver Office of Economic Development.
The property is in the city’s District 11, represented by Council President Stacie Gilmore. Residents including members of a committee that worked on longrange plans for the area have talked about the benefits and challenges of bringing a major manufacturing facility into the neighborhood, Gilmore said Monday.
“The community saw … that this was a great use for this area and this will bring close to 500 jobs to the region as well,” Gilmore said.
The incentive package passed 11-1 with only Cdebaca voting no.
The new bottling plant is a replacement for Pepsi’s longtime digs at 3801 Brighton Blvd., according to Deborah Cameron, the city’s chief building development officer.
“Pepsi has outgrown the capacity of the Brighton Boulevard site and we all know how the neighborhood has changed around this existing facility,” Cameron said at a council committee hearing earlier this month. “Yet, Pepsi has committed to remaining and growing in the city.”
The company sold its parking lots across the street from the Brighton Boulevard facility a few years ago as the area, now part of the River North Art District, has rapidly redeveloped from an industrial area into a mixed-use neighborhood heavy on apartments and modern office space.
The would be state of the art, including automated storage and product retrieval systems, Cameron said. Construction and commissioning for the project is expected to take between 18 and 26 months. Workers at the Brighton Boulevard facility will be transferred over once work is complete.
Pepsi expects to eventually employ 475 people there, paying an annual average wage of $65,000 plus benefits, according to Cameron.
In addition to reimbursement for employee training costs, the incentive deal approved Monday also offers up to $500,000 in incentives for moving costs, including for furniture and equipment bought for the future facility. If Pepsi does not claim all $1 million it is eligible for by Dec. 31, 2028, the deal expires.