NORTHAMPTON — For the second time since Coca-Cola announced in 2021 that it would close its bottling plant in the Northampton Industrial Park, the beverage giant has informed the city that it will keep the center open for a little while longer.
The Atlanta-based company originally intended to shutter the Northampton plant in the summer of 2023, a date that was later extended to the end of this year. Now, the bottling plant, and the more than 300 jobs it provides, is expected to stay open through the end the first quarter of 2024.
Mayor Gina-Louise Sciarra confirmed that the plant would remain open into next year.
“Our current information is that Coca-Cola will be operating the Northampton facility at some level until at least March of 2024,” she said.
A company spokesperson for Coca-Cola also confirmed the delayed closure.
“As always, we remain focused on supporting our employees and the Northampton community throughout the closure process and will continue to work closely with the city throughout this transition,” spokesperson Claire Kudlata said.
For the city, the continuation of Coca-Cola’s operations into 2024 brings an opportunity for additional revenue. According to the city, the plant makes up a quarter of all water and sewer revenue, making it by far the biggest water customer for Northampton. Department of Public Works Director Donna LaScaleia said that the plant brought in $2.8 million in water and sewer rates to the city last year, but that such revenues were expected to decline as the plant prepares to close.
“We expect a scale down in their usage and likewise in the city’s revenue by calendar year end,” LaScaelia said.
In April, the City Council passed a measure that increased base water rates by 210% for both property owners and businesses, in anticipation of loss of water revenue the plant provides. The new rates officially took effect in July 2023 and have affected all property owners in the city, including the Coca-Cola plant.
For average homeowners, the water and sewer revenue increase will cost an additional $244 to $337 a year, depending on the size of water lines that feed their homes. The fees for water use are not changing.
Although Coca-Cola continues to push back the closing date for the plant, Sciarra said that the company was still looking to sell the property to an interested buyer, indicating that it still intends to leave the city.
“We know that the Coke real estate marketing team is actively looking for buyers for the property with the help of local, state and federal agencies,” she said. “At this point, any interest in the property would have to be described as in its very initial stages.”
Coca-Cola bought the former Mid-Atlantic Canners Association facility in Northampton in 1995. The plant underwent a 13,000-square-foot expansion, completed in 2011, that cost $50 million and added 100 jobs. Today, the 470,000-square-foot Coca-Cola plant bottles non-carbonated products including Minute Maid, Vitaminwater, Powerade and Honest Tea.
In March 2010, Coca-Cola benefited from a 13-year agreement with the city that reduced its tax burden on the 2011 expansion by 50% for the first seven years, then 25% for the remainder.
Alexander MacDougall can be reached at amacdougall@gazettenet.com.
