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Ormond Beach Observer Tuesday, Sep. 10, 2013 7 years ago

S.R. Perrott to build new, larger facility with help from city incentives


The city has pledged to support construction of the $6 million, 160,000-square-foot facility with $81,900 in growth-assistance funding, plus tax rebates


Ormond Beach city officials have pledged $81,900 in growth-assistance funds, plus $101,927 in property-tax reimbursements over five years, to S.R. Perrott, a local beer distributor, for the company to build and occupy a facility on vacant land it owns at 1280 N. U.S. 1.

In return, the city will retain an employer of 146 local workers.

“This contributes to the retention of business here,” said Economic Development Director Joe Mannarino. “They contribute a lot of revenue in taxes and fees. And their employees own homes and shop in the area.”

The company, which has distribution rights for Miller Beer, Coors, Pabst and several others brands, plans to construct their new facility in phases, according to the agreement. It will first build a 90,000-square-foot distribution center and then, over a five-year period, increase the size to 160,000 square feet and relocate all of their operations there.

The cost of construction is estimated to be $6 million and new equipment for the facility is expected to cost $650,000. This total was used to figure the growth assistance funding amount.

The company is also expected to make improvements to the site, including parking, landscaping and utility upgrades. It will also need to have a sewer line extended to the property at a cost of about $150,000.

The company’s current facility, on Perrott Drive, will be available for lease or sale when all operations are moved to the U.S. 1 site, and Mannarino said this will provide an opportunity for development on Granada Boulevard.

“It could be used for retail, multipurpose or industrial,” he said of the company's current facility.

But this move is not a new idea. S.R. Perrott has been planning on relocating and expanding for several years, according to Mannarino.

The new location is good for the city because it’s near Ormond Crossings, Mannarino said, a major planned commercial-residential development.

“Sometimes development spurs development,” he added.

The money invested by the city not only retains a commercial enterprise but also brings a real return, according to city documents.

“We used an economic model that has been used across the country,” Mannarino said. “It’s proven to be successful.”

Using the model, called Impact DataSource, a city can estimate the return on their investment in taxes and fees. In the Perrott deal, Ormond Beach officials expect that over a 3.8 year period, the city will see a return of 44%.

Perrott was founded in Ormond Beach in 1962 by Samuel R. and Mariette Perrott. It now distributes beverages in Volusia, Flagler and Putnam counties.

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