PepsiCo Inc. has secured incentives from the Westchester County Industrial Development Agency (IDA) to help finance a $240-million renovation of its headquarters in Purchase and keep the drinks giant in the state.
Frank McCullough, a partner with McCullough Goldberger & Staudt, LLP, represented PepsiCo Inc. before the IDA in its application for inducement in connection with the renovation, the largest project to receive assistance from the agency in the last 10 years.
“The assistance provided by Westchester County and New York State were critical in keeping PepsiCo’s world headquarters in the State and will provide a major economic boost to the region,” said McCullough. “Additionally, the project will create much needed jobs in the construction trades.”
PepsiCo officials told IDA that the company had considered many options, including relocating its headquarters to Connecticut, Texas or North Carolina before making the decision to remain in Purchase.
The renovation, which is expected to begin in the first quarter of 2013, is one of the largest corporate renovation projects ever undertaken in Westchester and is expected to create 1,250 construction jobs.
The project, which will involve renovations and improvements to the entire 440,000 s/f office complex at 700 Anderson Hill Road, is expected to take 30 months with completion in 2015.
The company will also receive $4 million in Excelsior tax credits from New York State and is finalizing a Payment in Lieu of Taxes (PILOT) agreement with the Town/Village of Harrison and the Harrison Central School District.
The world headquarters includes seven interconnected, three-story buildings constructed in the late 1960s when the company relocated to Purchase from New York City.
The renovation will enable the company to increase the capacity of the facility by up to 15 percent.
The improvements are expected to qualify the headquarters complex for LEED-Silver certification for energy conservation and other reductions in environmental impacts.
PepsiCo’s application to the IDA was based on a master plan for the renovation of the world headquarters site. McCullough represented the company before the Town of Harrison in 2009 and 2010 in securing the approval of that plan.
Among the site improvements are additional parking and reconstruction of roads on the 152-acre property, as well as providing extensive new landscaping, better fire access, water reclamation, wetlands mitigation and storm water management.
“After more than 40 years with minimal renovations, our worldwide headquarters requires updating to meet the future needs of the company,” said Rich Delaney, PepsiCo’s senior vice president of operations.
“This project will modernize our headquarters in ways that increase operating efficiency, create a more connected and collaborative work environment for employees and enable PepsiCo to continue to attract great talent to the company. “