UPS seeks $6.8 million for further expansion in Westside

The Mayors Budget Review Committee is asked to consider increasing a previous incentives agreement.


United Parcel Service Inc. has been expanding at 4420 Imeson Road in West Jacksonville.
United Parcel Service Inc. has been expanding at 4420 Imeson Road in West Jacksonville.
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United Parcel Service Inc. is evaluating Jacksonville for a further expansion of its Westside Industrial Park package distribution hub for an additional $138 million investment and 240 jobs.

The city Office of Economic Development is scheduled to ask the Mayor's Budget Review Committee at 2 p.m. June 22 to permit the introduction of legislation for the economic development agreement.

The city proposes a Recapture Enhanced Value Grant of $6.8 million.

The grant would be 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 4420 Imeson Road expansion.

That grant was related to UPS’s projected $196 million investment. By the end of 2019, the Atlanta-based distribution company 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 city incentives cap is increased from $4.3 million to $6.8 million.

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.

The summary says the jobs would add to the city logistics, warehouse and distribution base.

 

 

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