FedEx Expects to Start Construction on $220 Million Connecticut Distribution Facility
FedEx Ground, after purchasing property in Middletown, Connecticut, in March for $18 million, has given the city an official commitment to build a 525,000 square-foot distribution hub.
The city announced in May 2015 that FedEx Ground had applied for permits to build the facility.
But even after several approvals and the land purchase, the company did not officially commit to opening a center in Middletown until this week.
FedEx Ground will spend an estimated $220 million on the distribution hub, which will receive large shipments of packages and then distribute them to smaller facilities for home delivery. The hub is scheduled to open in Aug. 2018 and will have about 400 employees when it opens, according to a joint statement from the city and the company released Thursday, April 7.
"FedEx Ground is pleased to expand its presence in Connecticut," said Kevin Koken, vice president of eastern region operations for FedEx Ground. "The new hub in Middletown will provide added capacity in the region that will enable us to keep pace with an ever surging e-commerce market as well as the expected spikes in package volume we experience around the holidays."
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
The facility will complement existing centers in Willington and South Windsor, the company said. Construction is expected to begin in May or June.
Middletown officials have welcomed the proposal because of its expected tax revenue and the jobs it will create.
"This project represents a major step forward in our economy. FedEx is making nearly a quarter of a billion dollar investment that will lead to the creation of hundreds of jobs and add millions in revenue to our grand list," Mayor Daniel Drew said in a statement. "More importantly, the company's confidence in the city of Middletown is a clear indicator that this is a strong place to do business."
FedEx Ground has applied for a state tax incentive program that would abate 80% of the tax bill for five years. The state would reimburse the city for half of the abated amount. The city would collect 60% of the tax bill for the first five years.
