Wells is planning on doing a Phase III expansion at its plant in Dunkirk, once the current expansion project is complete. Phase III will help the company produce chocolate for its products.

It’s going to be chocolate time in Dunkirk.

During the Chautauqua County Industrial Development Agency meeting Tuesday, the Board of Directors approved incentives to Wells Enterprises Inc. The incentives, which include a Payment In Lieu of Taxes agreement and sales tax exemption, will assist the company with a new $175 million expansion of its Dunkirk plant.

The expansion, which is considered Phase III, will help the company produce chocolate as an ingredient in ice cream production. Phase III will create 20 new jobs, plus about 150 temporary construction jobs. Wells is in phase II for its plant, which began last year.

The county IDA provided tax assistance for its Phase I back in 2019.

According to the county IDA, when combined, all three phases will result in Wells adding 270 new jobs and retaining 380 full-time jobs.

Last month, Wells announced at the county IDA meeting that it wanted to build a new 133,000 square-foot Segregated Compound Facility which will serve as a new chocolate plant and increased production space. The SCF would be the first of its kind in ice cream in the U.S., with the ability to run a 15-line plant by 2028.

Attorney Milan Tyler for the county IDA noted this is actually going to be a vertical addition.

“This is going on top of what they’re building now, so it’s going to go straight up. It doesn’t increase the footprint,” he said.

By having a vertical expansion, Tyler noted additional state environmental quality review studies were not required.

The county IDA Board of Directors approved the tax incentives, with board member Kevin Muldowney abstaining.

The 10-year PILOT tax agreement for the Phase III project will result in payments to the affected taxing jurisdictions, including the city of Dunkirk, the Dunkirk School District, and Chautauqua County, totaling $2,241,980.

Adam Baumgartner with Wells Enterprises said Phase II is going well and they’re looking forward to getting that completed and moving on to Phase III.

“We’re looking forward to seeing our first new product rolling off the lines in August, approximately, of 2025,” he said.

In a statement, Wells Chief Executive Officer Liam Killeen thanked both city and county officials for their partnership.

“We couldn’t be more excited about the future of Wells and the role this expansion in Dunkirk will play in our ambition to be the U.S. ice cream category leader. We are extremely grateful to the State of New York, Chautauqua County, and the community of Dunkirk for their unwavering support of our growth. Most importantly, this is testament to the leadership and commitment of every one of our team members in Dunkirk. Their passion, drive, and excellence in operations are truly what makes this possible,” he said.

In August 2023, Wells Enterprises, owned by The Ferrero Group, announced plans for the full redevelopment of its existing Dunkirk manufacturing facility, located at 1 Ice Cream Drive. The facility plays an important role in the company’s expansion plans for its national manufacturing network of Blue Bunny, Halo Top, Bomb Pop, and Blue Ribbon Classics brands.

This Phase II project was anticipated to more than double the facility’s current production output and help support their continued plans for growth in novelty and packaged ice cream, while enabling future innovation. The estimated total cost of the Phase II project was $250 million and will create an estimated 250 new jobs by 2028.

In July, Gov. Kathy Hochul was in Dunkirk to announce the state is also supporting the project with up to $12 million in Excelsior Jobs Program tax credits and a $6 million grant from Empire State Development in exchange for job creation and capital investment commitments.

The new facility increases the total project cost to $425 million between Phase II and Phase III. The Phase I portion of the project, announced in 2019, involved $87 million in capital investments to the existing Wells facility, which included the addition of new property to accommodate a $7 million power substation.

“Over the past five years, Wells has committed to investing more than $500 million in our county, illustrating a tremendous commitment to the Dunkirk community and the local workforce for years and decades to come,” said Mark Geise, Deputy Chautauqua County Executive for Economic Development and county IDA chief executive officer. “I am proud of the support the CCIDA has been able to provide to Wells to help make all three phases a reality and ensure we not only help to retain jobs in northern Chautauqua County, but also see a significant increase in the coming years.”

Local officials also praised the company for its investments.

“Wells Enterprises’ commitment to our community’s prosperity is truly commendable, and we are proud to support this transformative project. This expansion goes beyond ice cream production; it represents a promising future for Dunkirk and Chautauqua County. We are grateful for Wells and the Ferrero Group’s dedication to our region, and we extend our heartfelt thanks to the CCIDA and the State of New York for their invaluable funding and support in making this project possible,” County Executive PJ Wendel said.

Dunkirk Mayor Kate Wdowiasz agreed. “This expansion not only signifies Wells’ commitment to the community but also promises a brighter future by creating 270 new jobs. Together, we will pave the way for economic growth and prosperity, ensuring that Dunkirk and Chautauqua County continue to thrive and shine,” she said.

Both The Ferrero Group and Wells have a strong history of success. Ferrero, which was founded in 1946, has grown to become a global leader in sweet-packaged foods, including confectionery, ice cream, biscuits, and snacks. Wells has become the world’s largest family owned and managed ice cream company since it was founded in 1913 as a dairy delivery business.