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County Adjusts Sysco Deal After Construction Delays

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By JULIA FERRANTE and NICOLA M. WHITE, The Tampa Tribune

Published: January 12, 2008

ZEPHYRHILLS - County commissioners have amended their incentives agreement with Sysco Food Services Corp. to adjust to the company's delayed construction plans.
Sysco officials have told the Zephyrhills and county governments they remain committed to building a food distribution plant and creating more than 100 jobs here, but the current financial climate and rising gas prices have prompted them to push back the timeline.

Houston-based Sysco still intends to buy property off Sixth Avenue but not until the end of the first quarter of 2008, which would delay the project at least three months. Officials are moving forward with site plans and design work.

County Commissioner Michael Cox told board members Tuesday that the company discovered some environmental issues on the property but has resolved them. Now, attention has shifted to protecting the company's finances and stock value.

"I do not believe the project is in jeopardy," Cox said. "I believe they are keeping up their end of the agreement."
Sysco approached Zephyrhills officials in July to discuss building a $60 million, 393,000-square-foot distribution center. The city and county agreed in October to provide an unprecedented $5 million in tax breaks to bring Sysco here.

The food distributor promised to bring more than 250 jobs, 125 of which would be transferred from existing Sysco facilities. The salaries would average $55,000, and the center would be built in an area city officials are keen to develop.

Sysco, which employs 47,000 people, is the largest food service distributor in the country.

Distribution requires trucking, which has been affected by the cost of fuel.

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