While the city is dealing with a code name for Project Crystal, the description of the deal matches Sam’s Club, the wholesale membership club division of global merchandiser Walmart Inc.
The city proposes a five-year $1.5 million Recapture Enhanced Value Grant based on 50% of the increase in real and tangible property taxes for the project.
The city Office of Economic Development intends to ask City Council to proceed with legislation for an economic development agreement. The Mayor’s Budget Review Committee unanimously agreed to submit legislation with the Jacksonville City Council to execute the deal.
Project Crystal
According to the city memo, summary and fact sheet:
• Project Crystal is described as a major international retailer that sells household goods, clothing and food items, which fits Walmart and Sam’s Club.
• The project wants to open a distribution facility in a soon-to-be-completed building under construction at 1400 Zoo Parkway.
• It intends to hire at least 100 people.
While the city is dealing with a code name for Project Crystal, the description of the deal it matches Sam’s Club, the wholesale membership club division of global merchandiser Walmart Inc.
The city proposes a five-year $1.5 million Recapture Enhanced Value Grant based on 50% of the increase and real and tangible property taxes for the project.
The city Office of Economic Development intends to ask City Council to proceed with legislation for an economic development agreement. It will ask the Mayor’s Budget Review Committee on May 8 to authorize the request.
Project Crystal
According to the city memo, summary and fact sheet:
• Project Crystal is described as a major international retailer that sells household goods, clothings and food items, which fits Walmart and Sam’s Club.
• The project wants to open a distribution facility in a soon-to-be-completed building under construction at 1400 Zoo Parkway.
• It intends to hire at least 100 people.
• It intends to invest $61 million, comprising $17 million in building improvements and $44 million in machinery, equipment, furniture, fixtures and the like.
• It would become one of the largest individual container users at JaxPort.
• It has a significant presence in Florida and the United States and has similar operations in neighboring states.
• Crystal’s distribution area from Jacksonville would include South Georgia, South Alabama, Florida and Puerto Rico.
Here is what Sam’s Club has been up to:
• As of Jan. 31, 2023, the fiscal year-end, Sam’s Club used 29 dedicated distribution facilities across the U.S.
• It announced plans to open more than 30 new clubs across the U.S. over the next several years along with a plan to invest in and modernize its supply chain through new distribution and fulfillment center locations across the country, “including cutting-edge automation.”
• Sam’s Club said it will launch five new supply chain fulfillment and distribution centers in 2023, with the first location planned in Georgia in the third quarter.
• It also will add other facilities to its supply chain network and retrofit some existing facilities so that its distribution centers are closer to its stores.
Sam’s Club
Let’s break this down to show how Project Crystal is similar to Sam’s Club.
Description: Sam’s Club and Walmart operate internationally and focus on household goods, clothing and food items. Walmart has more than 10,500 stores and websites in 20 countries.
Sam’s Club operates 600 clubs in the U.S. and Puerto Rico. Walmart and Sam’s Club merchandise includes groceries, clothing and household goods.
Location: The address of Project Crystal is Imeson Park South, where a 1 million-square-foot distribution center is under construction in North Jacksonville for completion in August.
Developer VanTrust Real Estate Executive Vice President Marc Munago said in September 2022 that the company was working on a tenant for it. The park also has smaller buildings available.
Hiring: The Wall Street Journal reported more details about the plans, including jobs. Sam’s Club said it would open five new highly automated fulfillment centers this year, and about 14 to 16 warehouses in total over the next five years, as well as upgrade its existing warehouses, it explained.
About 100 employees will work at its ambient facilities — which are those designed for items stored in a dry environment at room temperature — and about 1,000 work at fulfillment centers.
At the ambient facilities, the warehouse needs to be around 60 degrees all year, requiring temperature controls to keep air dry and free from moisture.
In addition to clothing and household goods, common food products stored in such warehouses include pasta and rice; breads, cakes, mixes and cereals; canned foods; sauces and condiments; tea and coffee; and more.
Investment: While no financial investment was provided by the Sam’s Club announcement, automation is a significant expense.
Joseph Godsey, senior vice president of supply chain at Sam’s Club, said Sam’s Club “is launching highly automated facilities with state-of-the-art automation and robotics. By combining the shorter distances and the efficiencies added via process, automation and digitization, replenishment of clubs and item fulfillment for members will be best in class.”
The warehouses will include technology that automates inbound processes, picking, packing, shipping and sorting and will be outfitted with “near full automation of what you can create in today’s technology,” the Journal reported.
Port: Sam’s Club says that as a retailer and warehouse club operator, it uses a global supply chain that includes both U.S. and international suppliers “from whom we purchase the merchandise that we sell in our stores, clubs and online.” Walmart also is an importer.
Presence: In the U.S., Texas has the most Sam’s Clubs with 82. Florida is second with 46, followed by California with 29. There are three in Jacksonville in North Jacksonville, South Jacksonville and Southwest Jacksonville.
Distribution area: Sam’s Club announced the first of its five new locations is planned to open in Georgia in the third quarter.
The fulfillment center will create 600 jobs in Lithia Springs in Douglas County near Atlanta. A fulfillment center functions differently than a distribution center in that it fulfills and ships specific customer orders, requiring more employees, while also possibly serving as a distribution center.
A distribution center is a central warehouse where manufacturers send products to be distributed to stores.
The Jacksonville location would serve stores in the defined area.