United Parcel Service Inc. applied to the city for a permit to install more conveyors at its Westside Industrial Park parcel shipping ground hub at 4420 Imeson Road.
Material Handling Systems Inc. of Kentucky is the contractor for the $32 million project. Storage Rack Engineering Inc. of Santa Margarita, California, is the engineer.
Atlanta-based UPS is expanding the hub and is evaluating Jacksonville for a further expansion for an additional $138 million investment and 240 jobs that would add to the logistics, warehouse and distribution base.
The city proposes a Recaptured Enhanced Value Grant of $6.8 million, based on 50% of the increase in real and personal property taxes generated at the project site for five years, capped at $6.8 million.
To receive the grant, UPS must make a private capital investment of at least $300 million and create at least 240 jobs by the end of 2024.
A UPS summary from the city says that the city approved a REV grant for UPS in 2017 for the expansion. That grant was related to UPS’s projected $196 million investment.
By the end of 2019, UPS had invested about $173 million and it continues to seek permits for work.
On top of the $196 million, UPS proposes a $138 million expansion, creating a total investment of $334 million over four years.
UPS said it is evaluating several states for the project, according to the summary.
The city proposes to revise the REV grant agreement to reflect the $334 million investment, while the five-year term remains the same.
The 240 jobs would pay an annual average $50,000 plus benefits.
The $334 million investment would comprise the $173 million invested through last year and an additional $161 million in machinery, equipment, furniture and fixtures.