Construction delay pushes DeKalb Kraft Heinz development opening to 2027

DeKALB – Kraft Heinz’s $400 million facility hit a snag in its DeKalb construction, pushing the opening date back by two years to 2027, officials said.

Company representatives and City of DeKalb officials have remained tight-lipped on causes for the global food manufacturer’s construction delay, however.

The 775,000-square-foot automated distribution center was announced in July 2023, with promises to bring with it about 150 jobs and open by 2025. That won’t happen for at least two more years, emails obtained through public records requests show.

“There was a pause because there was a design conversation going on,” City Manager Bill Nicklas said. “I’m not privy to it, but that’s what I’m told and that’s all I can share about that.”

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An updated look at construction of the Kraft Heinz Company distribution center Friday, Nov. 22, 2024, at the corner of Gurler and Peace Roads in DeKalb. (Mark Busch)

Emails obtained by Shaw Local News Network show that Kraft Heinz’s facility at Gurler and Peace roads is set to open sometime in 2027.

The distribution center is expected to be significant when built, moving more than 60% of Kraft Heinz dry goods to North America, according to the company.

Shaw Local obtained records of an Oct. 10 email exchange between DeKalb Mayor Cohen Barnes, Nicklas, Lynsey Elve, Kraft Heinz’s director of global corporate communications and Sarah Doran, associate director of state government affairs at Kraft Heinz.

In that email, Doran stressed that the company remains committed to completing the build.

“The parties involved are working to address the issue and we expect to open the facility sometime in 2027,” Doran wrote.

In a statement to Shaw Local Tuesday, a Kraft Heinz spokesperson also confirmed the new timeline.

“We recently experienced a construction delay at our DeKalb distribution facility,” the statement reads. “The parties involved are working diligently to address the issue and we look forward to opening the facility in 2027.”

The development, once complete, will continue a trajectory of industrial growth on DeKalb’s south side.

Nicklas said a delayed opening will not impact tax incentives that may be owed to the company.

Tax breaks were approved for the development before it was announced.

After the first year of a full assessment, the Kraft Heinz development will become eligible for a 50% property tax abatement, meaning they’d get a 50% break on property taxes owed for a period of 15 years, officials have said.

Kraft Heinz also is in DeKalb County’s enterprise zone, an economic tool used by governments to designate areas that offer corporations incentives to buy up land and build. Because Kraft Heinz is in that zone, the development could be spared from paying some of the sales tax on construction materials purchased for the build.

Nicklas said he’s glad to know the project has resumed construction.

“The project is continuing,” Nicklas said. “Kraft Heinz is energetically pursuing the project and also the area around the tall portion of the structure continues to be worked on.”