Behind the Deal: Negotiations for Red Bull’s New Valley Facility Took Months

Article originally posted on Phoenix Business Journal on March 14, 2019
Red Bull's joint venture facility in Glendale represents an investment of more than $70 million.

A 700,000-square-foot facility planned by Red Bull, Ball Corp. and Rauch Fruchtsafte will represent an investment of over $70 million in Glendale.

Chris Camacho, president and CEO of the Greater Phoenix Economic Council, said his organization has been involved with the project since July, when a consultant with Deloitte contacted GPEC and said the companies were looking for a new location and were also considering sites in the southeastern U.S.

In September, GPEC brought Maricopa County Supervisor Clint Hickman, Sandra Watson, president and CEO of the Arizona Commerce Authority and Kevin Czerwinski, principal at Merit Partners Inc. together to speak with the companies to share the benefits of locating in the West Valley.

While Camacho declined to share specifics of what will be produced at the factory, distribution facility and office space near Peoria Avenue and Reems Road, he said the three companies will work together to produce a set of products. Rauch is a juice maker from Austria, and Ball Corp. is a manufacturer of recyclable metal and glass beverage and food containers.

At its Feb. 26 meeting, Glendale City Council voted unanimously to approve forgoing $750,000 worth of development fees in exchange for public improvements that will result from the project, which Randy Huggins, economic development officer for the city, said will result in “dozens of very large, shovel-ready sites” in the area.

The facility will be part of the Woolf Logistics Center, which was approved by Council in December 2017.

In his state of the city address March 7, Glendale Mayor Jerry Weiers said the plant will create 140 new jobs, one-third of which will be “high-wage” jobs but did not specify the pay scale. Camacho said some of the jobs will be “advanced manufacturing” jobs.

Camacho said the companies still have to finalize some pieces of the project with the city, but said once construction begins, it usually takes 12 to 14 months to build a facility of this scale. According to a city announcement, the facility is expected to be functional by 2021.

Manufacturing and office operations continue to be a key sector for the West Valley, Camacho said.

“This project includes investment from two international companies, Rauch and Red Bull, plus one of the most recognizable names in manufacturing, Ball Corp. — demonstrating that Arizona’s value proposition resonates with decision-makers worldwide,” Watson said in a statement. “Arizona consistently provides the talent, location and infrastructure that industry leaders like these require. We thank Ball, Rauch and Red Bull for their commitment to Arizona.”