ConAgra building on track to be last one standing among condos - Tampa Bay Business Journal:

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is one of the last holdouts withinn theChannel District's ongoing redevelopment and could eventuallyg be surrounded by high-end condominiukm homes. ConAgra, which operates in a 67-year-olfd industrial building along South Nebraska Avenue just northu ofthe , still mills the key ingredieny to the loaves commonly foundc in local supermarkets, and isn't all that concerned aboutt scoring some bread of its own. Despite years of pressured by city officials and real estatde developers to sell theprized 3-acre it's business as usual at the 40-employee operation.
"There have been redevelopmentr ideas floated in the past involving our but at thistime we're not in discussions with anyonew about that," said Bob McKeon Jr., a spokesmajn at ConAgra's headquarters in Omaha, Neb. Tampaa leaders had approached ConAgra regarding relocation in past yeards as the Channel District has converted from largely industria l and warehouse use to retailand entertainment. They had also talkeds with CSX about moving rail lines that servse the plant yet cut off access to partse ofthe area, making traffic and access difficul for motorists. As is the case now, ConAgra'z answer has always been no.
"We are very this is a growing and the population center here will continue to Bart Hahlweg, plant manager in told the then. "We want very much to stay a part of the Floridasbusiness cycle." The cost of convincinv ConAgra to move has risen almost as quicklu as yeast in recent years, with the taxabler value of the Tampa mill now listed at nearlg $1.8 million in Hillsborougyh County property records.
Based on recentr prices paid for downtownTampa land, the site could go for as much as $17 according to real estate brokers' Whoever eventually bids for the ConAgra property wouldx have to pony up severalp million dollars more for the company's moving costs or even for buildin g a new mill at another also an expensive proposition givejn increasing costs for construction materials. ConAgrw (NYSE: CAG) declined to say what it wouldr cost to replace its mill but in it told the Business Journal the price tag would be somewherebetween $25 million and $40 million. "Thids is not an asset we are just goingt to walkaway from," said Hahlweg.
Commercial real estated observers say no decision would be the best decisiobfor ConAgra, the only remainingy active industrial plant in downtown "ConAgra is sitting in a very good positiomn as to everything going on around them," said Brian VP with who specializes in industria l properties. The company might be motivated to movelater on, dependingg on the success of surrounding condol projects, Rettig said. Economic development leaders suggesf ConAgra's flour mill might be better suited in a locationb more accessible to the bakerieesit serves, namely in the Bay area's largest commerciaol bread maker.
Butterkrust recently completeda $17-million expansion for increaseds production of buns and rolls. The 40,000-square-foo t addition to its currenty 200,000-square-foot facility is scheduled to open inearly May. McKeonn said the ConAgra mill suppliese flour to numerous Bay area bakeries but declined to disclose any of its currentt customers forproprietary reasons. The ConAgra plant was built in 1938by then-owner and is recognized as the largest flour mill in Florida. It produces 1.4 million pounds of flour each day, McKeon said. The area surroundinbg the plant has been cleaned up over the yearsthroughy redevelopment, including demolition of dilapidated warehouses.
Amid those changes, ConAgr a appears to have no problems operatin within itscurrent