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Kwik Trip to receive up to $21 million in tax credits, create 300 jobs

Kwik Trip’s new bread and bun bakery, part of a $300 million expansion underway, is currently being constructed at its headquarters in the La Crosse Industrial Park. 

Kwik Trip Inc. could receive up to $21 million in state income tax credits, according to an announcement by the Wisconsin Economic Development Corp., contingent upon whether its $300 million expansion creates more than 300 jobs in the La Crosse area during the next five years.

WEDC authorized the La Crosse-based company to receive the credits depending upon the number of jobs created, level of capital investment and amount it spends on equipment, goods and services from Wisconsin companies through 2022.

The tax credits are tied to Kwik Trip’s expansion in the industrial park on La Crosse’s North Side, where it is building a $42 million bread and bun facility with $71 million in state-of-the-art equipment. The new facility, which is expected to be finished in late 2018, will allow expansion of bread and bun production, and for increased sweet goods production in the existing bakery.

The project also includes expansions and improvements to the family-owned company’s dairy manufacturing facility, kitchen operations and transportation fleet, directly creating more than 300 jobs in the La Crosse area.

“The multimillion-dollar capital expenditures in Kwik Trip’s bakery, dairy, kitchen and transportation facilities will generate a significant return on investment for the state of Wisconsin and the city of La Crosse in the form of new and expanded tax base, job opportunities for our co-workers, construction contractors, subcontractors and suppliers,” said John McHugh, director of corporate communications for Kwik Trip.

“This will result in the purchase of additional fleet vehicles and the construction of more efficient production plants that will create higher capacity, productivity and cost savings which will allow Kwik Trip to better accommodate the needs of our guests in the 621 stores and numerous communities we currently serve,” he said.

An economic modeling study projects the Kwik Trip expansion will indirectly generate 235 jobs in the region in addition to the 300 directly created. According to WEDC, the direct and indirect jobs could generate up to $1.1 million annually in additional state income tax revenue.

“Kwik Trip’s decision to expand is great news for the La Crosse region as well as the entire state,” said Mark Hogan, secretary and CEO of WEDC, the state’s lead economic development agency. “Kwik Trip currently purchases over $900 million each year in goods and services from Wisconsin companies, and this expansion will further increase opportunities for statewide supply chain.”

The capital investment project is part of a long-term growth strategy for the company, which includes plans to open 40 to 50 new stores annually. The family-owned company plans to open 56 new stores next year, including 36 in Wisconsin.

“With more than 380 stores and 12,000 employees in Wisconsin, Kwik Trip has already shown a strong commitment to our state, and that commitment is being solidified with this expansion,” Gov. Scott Walker said. “Kwik Trip is the latest example of companies seeking to expand in Wisconsin because of our pro-business policies and dedicated workforce.”

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City government reporter

Jourdan Vian is a reporter and columnist covering local government and city issues for the La Crosse Tribune. You can contact her at 608-791-8218.

(12) comments

Monteee

And everyone I know who works for Kwik Trip tell me that it stinks.

awol2009

More corporate welfare for the "capitalistic" socialists whores. Due to their regional near monopoly, it's tough to boycott them but still possible at a handful of BP stations. I just don't believe in comingling tax dollars or breaks to private enterprise.

Greengate

Switch to an all electric car..I did 5 years ago..Nissan Leaf.. and now I put less than 500 miles a year on my gas car. 98% of our driving is in the Leaf, which costs next to nothing to drive and there is no maintenance beyond rotating the tires. A used Leaf can be purchased for less that $5,000..so how can you not afford, financially and environmentally not to do this? This is what is called.."put up or shut up."

awol2009

I've researched the Leaf and other electric models. The miles per charge range just isn't there yet for my travel needs. Stop every 100-110 miles to charge? That's crazy for my business travel, not a practical purchase for me or many folks I know. I think Tesla's new models will offer a bit more, but still not enough miles per charge. I'm sure they are great for short distance commuters or traveling, though. Just curious, Greengate, how are they in winter with heating the interior and is the battery compartment sealed well to prevent rusting out from road salt? How does it start on -20 to -30° mornings in an unheated garage or after sitting overnight in those temps?

you think you know

And you get your electricity to charge said car from a coal powered plant. So where's the 'green'?

Greengate

Lets see..thats 300,000,000 dollars divided by 300 jobs..seems like that is a million dollars a job...tell me how this makes any economic sense? Ask these fools to just give a million dollars to 300 people and they would go nuts!! So who is nuts here? Why don't we try something like this else where in the state..lets do something in Kenosha. Spend a zillion dollars of the WI tax payers money, create a few jobs, many of which will be taken by the people in IL since they are but a stones throw away, and call it a "jobs creation" program while we pollute the sh*t out of our environment with this Fox Com tax payer scam.

Whatup Dog

Read the story again but this time pay close attention to how much money would come from the state (hint, 21 million) and how much the total expansion will cost (hint, 300 million

kingman10

so that comes to 70,000 per job by my calculations. How long before the state gets that money back from each job? Prolly another 25 years at least. Why is the state subsidizing a highly profitable business? I can see maybe helping those that are struggling by giving them loans, but this is getting to be ridiculous.

new2Lax

Subsidizing failing businesses nine out of ten times is like pouring money down a rat hole. It's a bad investment, they are much better off if gobbled up by a successful company at 1/3rd the cost.

you think you know

300,000,000 is not enough amount of the tax break. That's the total investment by KT. Your 1 million per person is 14 times too high.

canman

WEDC finally supporting a viable Wisconsin business instead of what if out of the country pie in the sky scams.

johnnybragatti

Sell more alcohol and tabaccky...
that"ll learn ya !!!
Give more to the punk :Walker ...too

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