Hartford Business Journal

8 Hartford Business Journal • May 6, 2019 • www.HartfordBusiness.com By Joe Cooper jcooper@hartfordbusiness.com S ardilli Produce & Dairy Co. Inc., which was recently con- sidering a major expansion in one of Hartford's last remain- ing tracts of undeveloped land, now plans to end its four-decade run in the city by relocating its manu- facturing and warehouse operations to vacant farmland in East Windsor. The family run food distributor, which currently occupies a 22,500-square-foot facility on Locust Street in Hartford's South End, is proposing to build a sprawling 202,400-square-foot distribu- tion facility in East Windsor for produce manufacturing, warehouse storage and office space. The plan also calls for construction of a 7,500-square-foot maintenance building to house a fleet of trucks, 372 parking spaces and 25 loading docks. Two of four tobacco barns located on the 22 acres at 12 South Main St. (Route 5) in East Windsor would be retained and renovated. The proposed project has been moving its way through East Wind- sor's approval process and is close to getting both town and state approval, according to town records. It's not clear what the project would cost or when it might be completed. Sardilli did not respond to multiple requests for comment on this story. The move would mean Hartford loses one of the region's largest food distributors. Sardilli has at least 135 employees, records show. Its 212 Locus St. property has an assessed value of $533,470, records show. It's not clear exactly why the com- pany, led by third generation brothers Devin and Jason Sardilli, is leaving Hartford, but it has been looking for larger quarters to accommodate its recent growth in the booming $12 bil- lion pre-cut produce manufacturing industry, records show. Michael Freimuth, executive direc- tor of the Capital Region Develop- ment Authority, said Hartford officials worked to keep Sardilli within the city's borders, but the East Windsor site ultimately provides the company more space to grow and provides easier access to Interstate 91. Both are key as- sets for any food hauler, Freimuth said. "I think they cut a deal they thought was favorable, one they thought fit within their business plan," he said. Hartford's 74.29 mill rate is also more than double East Windsor's 33.9 mill rate, which means moving will help the company reap significant property-tax savings. Sardilli was one of two produce distributors that submitted propos- als in early 2018 to build on 20 acres of industrial land in Hartford's South Meadows section. Sardilli, in addition to FreshPoint, a division of Houston-based food distribution giant Sysco Corp., each proposed to lease land at 100 Reserve Road, and build a 100,000-square-foot distribution center. That land, which is currently owned by the quasi-public Materials Innova- tion and Recycling Authority (MIRA), operator of the nearby waste-to- energy plant, is considered one of the largest remaining city tracts open for development. However, Sardilli withdrew its development proposal weeks before CRDA, which was overseeing the bid- ding, recommended FreshPoint's $39 million bid to MIRA last June. CRDA, at the time, indicated that Sardilli was looking to expand elsewhere. According to its proposal to CRDA, Sardilli said it had been searching for a new location in central Connecticut over the last five years to accommo- date significant growth, including a 21 percent increase in its workforce between July 2017 and Feb. 2018. "Unfortunately, we have had to turn away business over the past year due to space constraints at our current facility," the company's proposal said. "The approximately 20-acre location at 100 Reserve Road in Hartford may be the perfect location for our present and future needs." In addition to the distribution center, Sardilli's nixed Hartford proposal in- cluded development of a 75,000-square- foot addition for refrigeration space. The total project price tag ranged from $20 million to $30 million, and was projected to add an additional 300 jobs — mainly in manufacturing, management, food safety, quality control and distribu- tion — and generate about $167,000 in property-tax revenue. In attempts to keep Sardilli local, Hartford Mayor Luke Bronin said the city explored tax incentives and potential sites for the company, but adequate space is lacking. "Over the last three years, we've worked very hard to keep Sardilli in Hartford, and we've explored many FreshPoint still hopes for $39M Hartford expansion S ardilli Produce & Dairy Co. Inc. may be leaving Hartford but FreshPoint, a division of Hous- ton-based food distributor Sysco Corp., is still looking to expand near its current 40,000-square-foot facil- ity at the Hartford Regional Market. The Capital Region Development Authority (CRDA) last June recom- mended FreshPoint's $39 million bid to build a 145,000-square-foot distribution facility on unused land near the Materials Innovation and Recycling Authority's waste-to-ener- gy plant on Reserve Road. FreshPoint's proposed project was part of an open-bidding process that Sardilli bowed out of weeks before CRDA made its recommendation. However, several hurdles need to be cleared before FreshPoint's Hartford plans can move forward. MIRA must first decide how it plans to upgrade and operate its trash plant before it can free up the 20-acre lot and award FreshPoint's bid to redevelop there, according to CRDA Executive Director Michael Freimuth. MIRA has been in drawn-out negotiations with a private company — Sacyr Rooney — that has proposed to overhaul and operate Connecticut's largest waste-to-energy plant as part of a $229 million project. Meantime, the state Department of Energy and Environment Protection will also need to sign off on Fresh- Point's bid. Freimuth said FreshPoint is looking to move forward with its proposal to add 75 full-time jobs at the new site, and retain its 185 em- ployees at the regional market. FreshPoint, which did not return calls for comment, would lease the land from the state and pay property taxes to the city. — Joe Cooper Fresh Start After 40 years in Hartford, Sardilli Produce & Dairy Co. eyes move to E. Windsor Hartford's Sardilli Produce & Dairy Co. is proposing to build a 202,400-square-foot distribution hub on farmland in East Windsor. PHOTO | LOOPNET.COM

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