The future Sawmill Pointe Business Park has its first development ready to move forward after Delaware City Council approved a combined preliminary and final development plan for Exxcel Project Management to construct a new building for Delaware-based packaging company Inno-Pak on the site.
With the approved plan, a 202,165-square-foot building will be constructed on approximately 13.95 acres of land located north of the future Sawmill Parkway extension and east of the proposed Founders Court. Headquartered at 1932 Pittsburgh Drive, Inno-Pak will use the new building as a continuation of its production facility while also relocating some of its logistics.
The approved development is part of an approximately 87.34-acre site, commonly referred to as the Wilgus property. Exxcel was granted approval for a final subdivision plat for the Sawmill Pointe Business Park during the meeting.
Exxcel is proposing to subdivide the property for the creation of the industrial subdivision while also constructing Founders Court to access the Inno-Pak building. As part of the proposal, Sawmill Parkway will be extended from its current terminus near Innovation Court to Section Line Road.
Plans for the Sawmill Pointe Business Park began nearly four years ago with the annexation and rezoning of the site in June of 2018. In February, council approved an off-site development agreement and school compensation agreement between Exxcel, Delaware City Schools, and the Delaware Area Career Center (DACC) to fund the needed infrastructure associated with the site, including the Sawmill Parkway extension.
A Community Reinvestment Act (CRA) agreement was approved by council last month, along with an amendment to the school compensation agreement to include Inno-Pak. The agreement is expected to yield a net abatement of $4,049,855 over the 15-year CRA agreement. Inno-Pak is expected to create 34 new full-time jobs, with a payroll of $2 million by the end of 2027 as part of the agreement.
The entire site will be included in a Tax Increment Financing (TIF) agreement, which will provide a split of property tax revenues between Delaware City Schools and DACC on improvements for 15 years after the CRA abatements expire, according to Economic Development Director Sean Hughes.
During Monday’s meeting, Planning and Community Development Director Dave Efland called the development by Inno-Pak “exciting to keep them in our community and allow them to expand at this location.”
Approval of the new Inno-Pak facility marks a continuation of a productive week for the company. Earlier this week, Inno-Pak announced its acquisition of Stalk Market, a manufacturer of cutting-edge compostable and eco-friendly packaging.
According to a press release announcing the acquisition, “The strategic move dramatically expands Inno-Pak’s ability to offer sustainable products throughout the Americas and serve the evolving needs of industries in which green packaging is increasingly paramount.”
“The acquisition of Stalk Market adds an exciting, comprehensive array of new eco-friendly products for our customers,” Inno-Pak Chief Executive Officer Jon Sill said. “Expanding our compostable product offering reinforces the commitment we have made to be the market leader in providing innovative, cost-effective, sustainable packaging solutions to the supermarket, C-store, and foodservice industries.”
Inno-Pak Chairman Chris Sanzone added, “We are excited about the acquisition of Stalk Market. This enhances our overall innovative product offering. We are aggressively looking for complementary acquisitions in the sustainable space.”