PepsiCo may be expanding its operations in Tolleson.
The company, which is famous for the Pepsi drink but also manufactures Mountain Dew, Doritos and Gatorade, will lease a facility being developed at 75th Avenue and Buckeye Road.
The site is slated for a PepsiCo expansion including an e-commerce portion as part of the development, according to the city council agenda packet.
PepsiCo already has a production facility in Tolleson less than 20 minutes away from the proposed site.
Tolleson City Council members unanimously approved a new agreement Jan. 12.
Merit plans to lease 21 acres near Estrella Commerce Park to PepsiCo for e-commerce and distribution. The agreement will last for a minimum of five years.
“For years it’s been difficult to put any kind of retail there. … PepsiCo gave me their estimates for about $9 million a year in sales. If you multiply that by five years, that’s $45 million, and 2.5% of that will come to the city of Tolleson,” said Tolleson Development Services Director Jason Earp.
PepsiCo will most likely agree to a 10-year lease, Earp said, and he hopes that Tolleson will get 10 to 20 years of business from their facility.
The site is expected to be completed by the beginning of November, and PepsiCo will likely be looking to hire new employees for the facility, according to TJ Wead, an investment officer for Merit Partners.
The plan for PepsiCo to agree to the lease was met with minimal questions and an abundance of praise.
“There’s multiple benefits here, and I think the greatest benefit is that we have a partner that has been a part of Tolleson tradition for a very long time,” Tolleson Mayor Juan Rodriguez said.
“It’s development like this that has rendered Tolleson recession proof,” City Manager Reyes Medrano said, adding, “This might be the most active economic development year that we’ve ever had.”