The Mathis Report: Massive warehouse plans bring speculation

Lowe’s will soon open a fulfillment center in Tennessee similar in size to one proposed for Cecil Commerce Center.


Lowe’s is working to open an 1.1 million square foot fulfillment center in Coopertown, Tennessee. It is planned to have 600 workers by 2022.
Lowe’s is working to open an 1.1 million square foot fulfillment center in Coopertown, Tennessee. It is planned to have 600 workers by 2022.
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Large distribution centers generate speculation about their identity and a proposed 1.5 million-square-foot warehouse distribution center at Cecil Commerce Center is doing just that.

Plans filed with the St. Johns River Water Management District show it called “Project Jaguar” on at least six documents.

Dan Tatsch
Dan Tatsch

However, Hillwood, the master developer for city-owned Cecil Commerce Center, says the submission was not specific to “Project Jaguar” and the presence of that name likely was a clerical error.

The primary prospect name surfacing the past two weeks is Lowe’s Companies Inc., the North Carolina-based home improvement company that recently opened a similarly sized fulfillment center in Tennessee.

“We are always evaluating possible locations, but we don’t have anything to share at this time. We’ll be sure to connect with you if we have any announcements about the First Coast,” said Lowe’s spokesman Steve Salazar by email last week.

Given the local interest and asked for a yes or no — is or isn’t Lowe’s a prospective tenant or user of the Cecil Commerce Center project — Salazar didn’t elaborate.

“We don’t have any additional information to share at this time,” he said.

Like other big projects— Amazon.com, in particular — prospect names often, but don’t always, circulate before construction begins or city and state incentives are requested.

The city and Dallas-based Hillwood submitted plans July 23 to the city Development Services Division and July 20 to the St. Johns River Water Management District.

The warehouse is proposed on almost 107 acres in Hillwood’s AllianceFlorida at Cecil Commerce Center along 103rd Street next to the 1 million-square-foot Amazon.com fulfillment center.

The city plans provide an address of 13483 103rd St. adjacent to Amazon at 13333 103rd St.

Both the city and district applications refer to Cecil Commerce Center Parcels A2 and B and labeled them as “early clearing.”

Prosser Inc. is the civil engineering consultant. Environmental Resource Solutions is the agent. Terracon provided a geotechnical engineering report.

Hillwood Senior Vice President Dan Tatsch said Tuesday that he does not talk about potential users.

“We don’t comment on our prospect list and who may or may not be on it,” he said.

The “early-clearing” for the land indicates Hillwood wants approval to prepare the property for eventual but not necessarily immediate development.

“We feel strongly enough about the Jacksonville market that we’re taking steps for quicker delivery should we encounter a user for the site,” Tatsch said.

No city legislation has been filed for incentives for Project Jaguar. 

Hillwood reported to the city June 29 that near the end of the first quarter in March, a broker asked about sites for a 1 million-square-foot distribution facility at Cecil Commerce Center.

Hillwood said that it received and responded to the broker’s preliminary inquiry but did not disclose the identity of the prospect. The client seeks to identify sites to accommodate the facility.

Tatsch said upon filing the report that he couldn’t offer details, but that the prospect remains active at the park.

“The deal is still alive. We and others are still chasing it,” he said June 29 of Jacksonville developers.

“I know the prospect is paying serious attention to Jacksonville. Whether or not they are paying serious attention to another city, I don’t know,” Tatsch said.

As for Lowe’s, it’s not clear what sort of facility it would consider for Jacksonville, such as whether it would distribute to stores and other company warehouses, serve as a direct-to-consumer location or be a hybrid.

Lowe’s went by “Project Ally” when it chose Coopertown, Tennessee, near Nashville, for its first direct-to-consumer fulfillment center. The 1.1 million-square-foot, $112 million, 600-job center on 110 acres is expected to open this year.

It is billed as Lowe’s “first” fulfillment center, indicating the company likely is looking for more sites. It will ship orders directly to Lowe’s customers and fulfill orders for 15 regional distribution centers and 1,750 stores when fully operational, according to Tennessean.com.

Spokeswoman Tia Ford said Tuesday the city had no comment at this time. JAX Chamber declined comment.

 

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