(KMOV) – FedEx is building a new ground distribution center that will bring nearly 200 jobs to the Metro-East area by the summer of 2014.
Illinois Gov. Pat Quinn on Tuesday announced the shipping company will invest $23.5 million into building the center in Sauget. The facility will create 25 full-time and 150 part-time jobs.
“Illinois is one of the best places to do business in the world,” Quinn said. “[Fed Ex’s] expansion will help our state’s economy continue to recover from the worst recession since the great Depression.”
The 181,000-square-foot distribution center is scheduled to open at Sauget Industrial Parkway in August 2014.
FedEx Ground currently operates 16 facilities in Illinois.
“FedEx Ground is thrilled to join the Sauget community, and we’re grateful to Governor Quinn for his support,” Scott Burns, Fedex Ground regional vice president said. “The site was selected for its ease of access to major highways, its proximity to customers’ distribution centers, and its strong local workforce for recruiting employees.”
Sauget FXG, LLC, a subsidiary of Jones Development Company, LLC, purchased the 32-acre site in April 2013.
JDC will develop the site and lease the newly-constructed building to FedEx Ground.
According to state officials, FedEx Ground will be eligible for state tax credits worth about $459,000 over 10 years if it creates a certain number of local jobs.
The Illinois Department of Commerce and Economic Opportunity is offering up the $459,000 in corporate tax credits over a ten year period, as long as FedEx employees at least 25 people full time, according to Governor Pat Quinn’s Office.
In addition to state tax credits, the Village of Sauget is working on a tax increment financing package for FedEx. The amounts won’t be determined until the construction costs estimates are done later this year, said Lisa Bowman - a financial consultant for the village. Typically, she says the village offers between 75 and 90% tax abatements on site development.