A Colorado company planning to build a plant to process reusable stainless-steel beer kegs on Tucsonβs southeast side is in line for more than $300,000 in city sales-tax breaks.
The Tucson City Council on Tuesday unanimously approved a letter of intent to offer a tax incentive toΒ MicroStar Logistics, based on its plan to spend $42 million to build and equip a 150,000-square-foot facility on a vacant industrial site at 9825 E. Old Vail Road.
Across its network of βKeg Quality Centers,β Denver-based MicroStar Logistics inspects, repairs and maintains millions of stainless-steel beer kegs each year.
The building is the first phase of a plan announced in July to build 270,000 square feet of keg-handling facilities at the Tucson site, a MicroStar spokesman said.
MicroStarβs new plant is expected to create a total of 243 new jobs at a projected average wage of $50,164, according to an agreement developed by the city manager at the request of the city council.
The estimated value of the incentive to the company is $322,387, which is contingent upon MicroStar meeting its employment projections of 25 jobs that pay more than $54,932 within five years of the approval of the development agreement.
Over five years, the project is expected to generate direct revenue to the city of $1.1 million, plus more than $2.9 million to other taxing districts.
MicroStar Logistics, a major supplier of outsourced beer kegs based in Denver, plans to use the new Tucson plant to for warehousing, distribution and processing operations related to keg maintenance, re-branding, refurbishment, repair and cleaning.
The company, which also offers keg rentals, more recently launched a network to process and manage reusable plastic shipping pallets used for beer kegs.
In February, MicroStar announced it would launch its pallet-management network with Constellation Brands, which recently purchased a new fleet of reusable plastic pallets.
Constellation brews Modelo and Corona beers for the U.S. market at two breweries in Mexico, including one in Obregon, Sonora.
The company touts stainless steel kegs as the most environmentally-friendly route to market for beer, supplanting the need for 6 million cans and bottles annually. If maintained properly, kegs can last over 30 years.
