United Parcel Service received a permit Thursday to install the bulk of the conveyors in its Westside Industrial Park plant at a cost of $77.5 million.
MHS Company Inc. of Kentucky is the contractor. The permit shows that the $77.5 million project is the first phase.
Atlanta-based UPS, which is working on a $196 million expansion of the Westside package delivery hub, will install the conveyors in its parcel shipping hub at 4420 Imeson Road.
Incentives legislation approved by the city in November 2016 specified that the $196 million expansion would include $150 million in equipment, furniture and fixtures.
UPS said the Imeson Road facility would be expanded by fall 2019 and retrofitted with advanced technology and operations automation.
The center was developed in 1989 and it is almost doubling its size to more than 900,000 square feet of space.
The incentives call for $4.3 million of city funding through a Recaptured Enhanced Value grant.
UPS told the city that more than 1,650 full- and part-time employees work at the hub and its four adjacent package centers.
The project would create 10 jobs at an annual average salary of $50,675 by the end of 2020.
As that hub is being expanded, UPS is retrofitting a 400,000-square-foot warehouse nearby in the Westlake Industrial Park to handle additional package processing.