City leaders react to news of Basic American Foods closing 2 east Idaho facilities
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SHELLEY — Around 300 jobs will be lost as Basic American Foods closes two eastern Idaho facilities.
Basic American Foods announced Tuesday it’s closing down its Shelley facility, that provides around 200 jobs, and its small Blackfoot facility, where there are around 100 jobs. The main Blackfoot facility will remain open.
“Any time the city of Blackfoot has a business that closes or moves shop, it saddens me because we have such a great community,” Blackfoot City Councilman Chris Jensen told EastIdahoNews.com. “To lose any jobs out of Blackfoot hurts and concerns the city councilmembers.”
RELATED | Basic American Foods to close facilities in Shelley and Blackfoot
Shelley Mayor Stacey Pascoe said although the city is losing 200 jobs, there are other companies in Shelley and the surrounding area where people will be able to find employment.
“It will be an impact, by all means, but I don’t feel like it will be a huge impact,” Pascoe said. “We might have a little bit of a slowdown … but chances are people are going to stay and commute a little bit.”
Pascoe said Shelley will lose an estimated $9 million of tax base when Basic American Foods leaves in 2021, but he’s confident Golden Valley Natural will make up for the loss. The jerky company’s tax increment financing will be paid off by 2021, bringing in an estimated $12 to $14 million tax base.
“I do hate to see (Basic American Foods) leave because you always hate to see a business close. But every company’s got to do their best to keep it afloat,” he said.
Jennifer Anderson, Basic American Foods Vice President and General Counsel, told EastIdahoNews.com employees were notified of the closures Tuesday and those who lose their jobs are encouraged to apply for other positions in the company.