(WNY News Now) – Wells Enterprises, Inc. has received significant incentives from the County of Chautauqua Industrial Development Agency (CCIDA) for the third phase of its $425 million redevelopment of its Dunkirk manufacturing facility, promising job growth and innovation in the ice cream industry.
At its November 19, 2024 meeting, the County of Chautauqua Industrial Development Agency (CCIDA) Board of Directors approved incentives to Wells Enterprises, Inc. The incentives, which include a Payment In Lieu of Taxes (PILOT) agreement and Sales Tax Exemption, will assist the company with the construction of its new, state-of-the-art facility in Dunkirk. This latest round of CCIDA incentives (Phase III) for the company follows two previous rounds of incentives (Phase I in 2019 and Phase II in 2023). When combined, all three phases result in Wells adding 270 new jobs and retaining approximately 380 full-time jobs.
In August 2023, Wells Enterprises, owned by The Ferrero Group, announced plans for the full redevelopment of its existing Dunkirk manufacturing facility, located at 1 Ice Cream Drive. The facility plays an important role in the company’s expansion plans for its national manufacturing network of Blue Bunny, Halo Top, Bomb Pop, and Blue Ribbon Classics brands. This Phase II project was anticipated to more than double the facility’s current production output and help support their continued plans for growth in novelty and packaged ice cream, while enabling future innovation. The estimated total cost of the Phase II project was $250 million and will create an estimated 250 new jobs by 2028.
Earlier this year, Wells announced that in addition to the previously announced redevelopment effort, it would also build a new state-of-the-art, 133,000 square-foot Segregated Compound Facility (“SCF”) which will serve as a new chocolate plant and increased production space. The SCF would be the first of its kind in ice cream in the US, with the ability to run a 15-line plant by 2028. This Phase III project is estimated to cost $175 million and will create 20 new jobs by 2030. An estimated 150 temporary construction jobs would also be created by the project.
To help ensure Phase III can move forward, the CCIDA on Tuesday provided a 10-year PILOT for the project and will result in payments to the affected taxing jurisdictions (City of Dunkirk, Dunkirk School District, and Chautauqua County) totaling $2,241,980.
The new facility increases the total project cost to $425 million between Phase II and Phase III. The Phase I portion of the project, announced in 2019, involved $87 million in capital investments to the existing Wells facility, which included the addition of new property to accommodate a $7 million power substation.
“We couldn’t be more excited about the future of Wells and the role this expansion in Dunkirk will play in our ambition to be the U.S. ice cream category leader. We are extremely grateful to the State of New York, Chautauqua County, and the community of Dunkirk for their unwavering support of our growth. Most importantly, this is testament to the leadership and commitment of every one of our team members in Dunkirk. Their passion, drive, and excellence in operations are truly what makes this possible,” said Liam Killeen, Wells Enterprises CEO.
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