Frisco City Council has nominated Keurig Dr Pepper Inc. for the Texas Enterprise Zone Program, an initiative that would allow the company to apply for specific state tax rebates in exchange for guaranteeing job opportunities for persons meeting certain criteria.
The nomination comes ahead of a proposed $25 million that the company is considering spending within the city over the next five years, The Dallas Morning News reported. The investment would go toward facility and technology upgrades at its Frisco headquarters building.
In November, The Dallas Express reported that The American Bottling Company, a subsidiary of Keurig Dr Pepper’s Dr Pepper Snapple Group Inc., similarly planned to invest $25 million in its Irving facility. As in Frisco, the Irving investment was related to the company’s application for the state’s tax incentive program.
“The American Bottling Company estimates that it will invest approximately $25.0 million over the next five years and retain 500 jobs with an average annual salary of approximately $95,850 throughout the five-year designation at the qualified business site in the Irving facility,” the resolution stated.
Consideration for the TEZ Program is dependent upon nomination by the community in which a company is located. The program allows companies to apply for refunds of state sales and use taxes on certain spending. According to the DMN, Keurig Dr Pepper could receive a refund of $1.25 million for its expenditures related to the Frisco facility upgrades.
In return, Keurig Dr Pepper agreed to retain 490 full-time jobs and create 10 new full-time jobs at its office space at The Star for individuals who meet “economically disadvantaged, enterprise zone residency, or veteran” requirements. The company employs more than 1,100 workers in total at its headquarters location.
Keurig Dr Pepper Inc. has been expanding its North Texas footprint in recent years. In 2022, the company announced it took a minority status in Athletic Brewing Company, a Plano-based non-alcoholic craft beer producer. More recently, in 2023, a subsidiary of Keurig Dr Pepper, DPS Holdings Inc., which leases office space in Frisco, sought a permit from the city to allow them to create and test new beverages, some of which include an alcohol component.
The resolution to nominate Keurig Dr Pepper for the tax exemption was unanimously passed by the Frisco City Council on Tuesday. However, final approval for participation in the TEZ Program is in the hands of the Texas Governor’s Office.
