Bond program approved for Mars Petcare expansion in Fort Smith

The Fort Smith Board of Directors on Tuesday (May 21) approved a bond program that allows Mars Petcare to expand its Fort Smith plant, which employs more than 600 people. The bonds allow the company to reduce its property tax payments by $9.1 million over the next 15 years.

The $125 million Industrial Development Revenue Bonds (IDRBs) are the second since 2021 for the pet food processing plant. In December 2021, the board authorized the issuance of $145 million in IDRBs for the benefit of Mars Petcare. The board amended and updated that action in November, authorizing up to $180 million in IDRBs for the benefit of Mars Petcare.

Deputy City Administrator Jeff Dingman said at the meeting Tuesday night that Mars Petcare continues to invest in upgrades and expansion of its existing pet food manufacturing operations located at 10000 Roberts Boulevard in Fort Smith. Dingman said Mars Petcare’s overall expansion will add production lines and increase operational output by more than 40%.

“This project includes the acquisition and installation of machinery, equipment and other personal property for use in the manufacture of pet food products. It represents Mars’ commitment to ensuring its Fort Smith facility is a flagship of its industry,” Dingman said.

Mark Roberts, project manager of the latest expansion, said the ongoing expansion has added 132 jobs. Information from Dingman said the approximate average wage at the plant is $21.50 per hour. Roberts said the plant has between 630 and 660 employees.

The primary advantage of industrial revenue bonds is reduced property taxes on the project, Dingman said.

“Pursuant to the Payment in-Lieu-of Taxes (PILOT) Agreement (also authorized by the ordinance), the company will pay the equivalent of 50% of the normal property taxes for a period of 15 years, an overall savings of approximately $9.1 million in property taxes,” Dingman said in a memo.

Mars Petcare will be solely responsible for the bonds’ debt service payments. The city is not obligated to make or secure the bond payments.

Officials with Mars Petcare – based in Brussels, Belgium, with a U.S. headquarters located south of Nashville, Tenn. – announced in November 2007 that they would build the Fort Smith plant. The $80 million facility opened in September 2009. The average annual salary at the plant was then estimated at $35,300.