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FedEx to build $259M distribution center in Greenwood

FedEx is planning to build a new distribution center in Greenwood.

GREENWOOD, Ind. (WTHR) - FedEx is planning to build a new distribution center in Greenwood.

The Greenwood Redevelopment Commission recommended the city council to approve a tax abatement for the company to build a $259 million distribution center in the city.

The facility will reportedly be located off Interstate 65 at Worthsville Road.

A spokesman for FedEx issued the following statement to Eyewitness News:

"FedEx Ground is constantly evaluating where best to expand our network to meet growing customer demand for our services. FedEx growth creates jobs and opportunity. We can confirm we are looking at a site in Greenwood as a potential location for a package distribution center. FedEx does not publicly discuss specifics of a project until all aspects have been finalized."

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"That new interstate exchange right there with that land provides companies like FedEx a great opportunity and a great location," said Brent Tilson, president of the Greenwood Redevelopment Commission.

The 600,000 square foot regional hub would handle 30,000 packages an hour with an option to increase operations later.

Nearby Graham Road already handles a lot of truck traffic but that would increase significantly with the FedEx center set on 237 acres.

The investment will result in 80 full-time jobs paying in excess of $24 per hour and 375 part-time employees that will get almost $15 an hour.

City officials said the company was lured by Johnson County’s labor force, the available land and tax incentives. While those tax breaks amount to $17 million, the project will result in $30 million in new revenue to the city.

The new I-65 ramp system helped, too.

"If they can get up to 55 (mph) on the interstate in five minutes then that's an ideal location," Tilson said

"That's incredible,” said Wendell Davis, who lives and works in the area. “We need that here in Greenwood.”

Davis said more people to working and bringing more income into Greenwood was a plus.

"I know a couple people are going to be interested in the job I'm going to tell them about it," he said.

"I think FedEx is a great company from what I've heard before,” said Mark Fundenburger, Greenwood. “They're expanding their operations in Indianapolis, brings jobs, pays taxes.

But not everyone is as excited about the project.

"I think it'll ruin the landscape. I think it will detract from what the country is all about," said a resident of the area driving along Graham Rd. Tuesday.

He suggested a more urban setting, close to an existing industrial park for the facility.

Greenwood’s city council must still approve the plan. They will likely hear the proposal before year’s end.

It's the latest in a string of big Greenwood-area projects announced recently, including a sports facility and plans by a logistics company called Newgistics.

Lure for Amazon?

Does getting Fed Ex increase chances of luring major Amazon offices to the area?

Professor Matt Will with the University of Indianapolis says "this doesn't necessarily increase our chances for Amazon. But it reinforces the theory that we are the best place for Amazon. If it weren't for oceans and it weren't for mountains, I think Amazon would be a slam dunk for here."

Will says some of those corporate decisions are made around lifestyle considerations.

"But from a logistics standpoint, FedEx is just another example of Indiana being the place where everybody wants to go to distribute their products," he said. "We have the infrastructure to make this happen regardless of who is already here. In a way, this may be a competition for neighbor. So there may be a concern on that front.

"We have been the logistics center of the country for years and that is not going to change. This is just another notch on our belt saying, 'Hey, this is the place you have to go if you're going to distribute goods.'"

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