A proposed expansion at an ice cream manufacturing plant in Dunkirk has been given county support through tax assistance. During the Chautauqua County Industrial Development Agency meeting Tuesday, board members approved a Payment In Lieu Of Taxes agreement for Wells Enterprises, Inc.

In August, Wells Enterprises announced plans for the expansion of its Dunkirk manufacturing facility, located at 1 Ice Cream Dr. The facility plays an important role in the company’s expansion plans for the company’s national manufacturing network of its Blue Bunny, Halo Top, Bomb Pop, and Blue Ribbon Classics brands. The expansion is 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.

Officials noted it will result in the retention of over 400 jobs and, once completed, add more than 200 jobs.

The day Wells announced the project, President and CEO Liam Killeen gave a one-on-one interview with the OBSERVER to discuss the plans for the company. “What we are about to do here is build a world class state of the art ice cream manufacturing plant in Dunkirk, New York. The significance of that is that Wells has been consistently growing. … The growth has been really great, and Dunkirk sits inside what is by far the largest ice cream market in the United States — the northeast. So the strategic importance for us to produce here is really there,” he said in August.

Plans call for the current plant to be torn down and replaced with a new state-of-the-art facility. It won’t happen all at once. “It will take us a couple of years to fully install all of the lines we intend to install for that building,” Kileen said during the summer interview.

On Tuesday, County Executive PJ Wendel reiterated his support. “We are thrilled to witness Wells’ enduring dedication to Chautauqua County and the City of Dunkirk. The substantial investment made by this global company in our community speaks volumes about the exceptional caliber of our local workforce,” he said. “Additionally, I would like to express my gratitude to the CCIDA, led by Mark Geise, for their tireless efforts in bringing this project to fruition.”

Vince DeJoy, the director of planning and development with the city of Dunkirk said both current Mayor Willie Rosas and Mayor-elect Kate Wdowiasz support the project. “We just want to thank Wells for the significant investment. We want to thank the Chautauqua County Industrial Development Agency for all that you’ve done to help them with the financial assistance package and make this project a reality,” he said.

The county IDA Board of Directors unanimously approved the PILOT agreement. The tax breaks are for 10 years and will result in payments to the affected taxing jurisdictions (City of Dunkirk, Dunkirk School District, and Chautauqua County) totaling $2,219,067, with Wells Enterprises saving $450,900 in property tax payments during that time period. The sales tax exemption will total $11.5 million.

After the vote, Geise issued a statement, praising the decision of the board. “This is a game changer for the County and Region, and I am proud that the CCIDA was able to assist Wells Enterprises in bringing this exciting project to fruition. They have been a great partner, and I am grateful that they recognize the quality of the workforce in Dunkirk and chose to make their investment here in our community versus elsewhere,” he said. “Our team has worked diligently with the Wells team and the city of Dunkirk over the past several years, which has culminated in this substantial project; the benefits are going to be widespread.”

According to the county IDA, the total local economic benefit of the project is $490.8 million.

In addition to the assistance provided by the county IDA, New York State is also supporting the project with up to $10 million in Excelsior Jobs Program tax credits and a $6 million grant from Empire State Development in exchange for job creation and capital investment commitments.

It was a complete turnaround for Wells. In July of 2022, Wells Enterprises announced it was scaling back operations at its Dunkirk facilities, which would mean the elimination of hundreds of jobs. The following year the company reversed course and decided to move forward with the expansion.

During the interview in August, Killeen acknowledged the difficult decision that was in 2022, but it allowed them to refocus and regroup. “We needed to consolidate our best assets and the team we had here in order to reliably produce the products that we made. A year ago, the conversations weren’t about growth. This opportunity now presents the opportunity to really double the output from this location,” he said.

The project is estimated to begin in the first quarter of 2024.

The Ferrero Group recently acquired Wells Enterprises, its operations, and its ice cream brands.

The two family-owned businesses have a strong history of success. Ferrero, which was founded in 1946, has grown to become a global leader in sweet-packaged foods, including confectionary, ice cream, biscuits, and snacks. Wells has become the world’s largest family owned and managed ice cream company since it was founded in 1913 as a dairy delivery business.