State’s Support Leveraging $80 Million Private Investment
CHICAGO – The Illinois Department of Commerce and Economic Opportunity (DCEO) today announced that Central Grocers, Inc. (Centrella) will be relocating and expanding headquarters and distribution operations from Franklin Park to Joliet, Ill. The expansion of one of the nation’s top retailer-owned wholesalers is expected to result in the creation of 100 new jobs and the retention of 350 jobs, and is projected to be operational in the first half of 2009. DCEO provided Centrella with a $ 3.9 million business incentive package grant as part of its Opportunity Returns economic development program to help companies create and retain job opportunities in Illinois.
Centrella, which recently announced plans to combine with Certified Grocers Midwest, will become a retailer-owned cooperative serving 225 members that operate approximately 450 stores in Illinois, Indiana, Iowa and Wisconsin. As part of its relocation, Centrella is constructing a 920,000 square foot warehouse to provide extensive storage capability, as well as to meet increasing distribution needs to its members, such as Strack & Van Til and Ultra Foods.
“We work hard to make Illinois a great place for businesses to establish themselves and find success,” said DCEO Director Jack Lavin. “One of our goals is to help companies be competitive, regardless of their size. Being able to leverage their market status helps businesses keep costs low and pass the benefit on to consumers. Companies, like Centrella, that increase their productivity and create new jobs help drive our overall economy. We are pleased to assist them in this effort.”
“Our growing volume required that we relocate to a larger, more adaptable facility that would accommodate our current needs and allow room for further growth,” said Jim Denges, CEO of Centrella. “With DCEO’s assistance we have been able to serve a broader market, retain jobs in Illinois, and provide improved services for our members. That ultimately translates to cost-savings for grocery and retail customers.”
Centrella received $3.8 million in DCEO’s Economic Development for a Growing Economy (EDGE) corporate tax credits, and an $87,500 Employer Training and Investment Progam (ETIP) grant. Centrella was established in 1917 by a group of grocery storeowners working together to achieve buying and marketing efficiencies. The conglomerate’s buying power and economies of scale help its independent members maintain marketing efficiencies and competitive advantage.
Gov. Blagojevich’s Opportunity Returns regional economic development strategy is the most aggressive, comprehensive approach to creating jobs in Illinois’ history. Since a one-size-fits-all approach to economic development just doesn’t work, the Governor has divided the state into 10 regions – each with a regional team that is empowered and expected to rapidly respond to opportunities and challenges. Opportunity Returns is about tangible, specific actions to make each region more accessible, more marketable, more entrepreneurial and more attractive to businesses. It is about upgrading the skills of the local workforce, increasing the access to capital, opening new markets, improving infrastructure, and creating and retaining jobs. Opportunity Returns is about successfully partnering with companies and communities, both large and small, to help all of Illinois reach its economic potential.