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Jax Daily Record Thursday, Dec. 17, 202008:39 AM EST

City issues permit for $32 million UPS conveyor system

United Parcel Service Inc. is expanding its ground hub at Westside Industrial Park.

United Parcel Service Inc. landed a city building permit Dec. 16 to install a $32 million conveyor system at its Westside Industrial Park parcel shipping ground hub at 4420 Imeson Road.

MHS Company Inc. of Kentucky, also known as Material Handling Systems Inc. of Kentucky, is the contractor. Storage Rack Engineering Inc. of Santa Margarita, California, is the engineer.

Atlanta-based UPS is expanding the hub and is working toward a further expansion for an additional $138 million investment and 240 jobs that would add to the logistics, warehouse and distribution base.

At its Aug. 11 meeting, City Council approved 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. The jobs would pay an average annual wage of $50,000 plus benefits.

A UPS summary from the city says that the city approved a REV grant for UPS in 2017 for an expansion. That grant was related to a projected $196 million UPS 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 is proposing a $138 million expansion, creating a total investment of $334 million over four years.

The $334 million investment would comprise the $173 million invested through last year and an additional $161 million in machinery, equipment, furniture and fixtures.

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