'Boro in running for FedEx hub on The Murfreesboro Post

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'Boro in running for FedEx hub

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By: By ERIN EDGEMON, July 31, 2008

Posted: Thursday, July 31, 2008 12:21 pm

Murfreesboro is in the running for yet another high-paying new employer.

FedEx Ground is considering building a $65 million package distribution hub along Joe B. Jackson Parkway. The project could create 213 jobs by 2011.

The Rutherford County Industrial Development Board approved a 10-year incentive package during its meeting Wednesday that would give FedEx a 100 percent tax abatement of $1.3 million for the first two years to offset initial capital expenses.

“FedEx is a strong company with a reputation of being community and employee-oriented,” said Holly Weber, vice president of economic development, Rutherford County Chamber of Commerce. “We are hopeful that Murfreesboro will be their next location. The Chamber of Commerce and city of Murfreesboro have worked confidentially for months with the company on site location and incentive negotiation.”

But it is far from being a done deal, she said.

Murfreesboro is one of several other cities in Tennessee and Georgia being considered for a hub.

FedEx Ground, a Pittsburgh-based portion of Memphis-based FedEx Corp. would pay more than $3 million in taxes within the first 10 years.

Of the jobs FedEx could create, 136 would be full time. Approximately 33 percent of those would be clerical and management positions.

Weber said the wages for the management positions are “significantly above our current average wages.”

Rutherford County’s average weekly wage is $718, according to the Tennessee Department of Labor & Workforce Development.

The new FedEx hub is projected to begin operation by 2014.

Weber said this initial facility would only be phase one of the project. Multiple expansions could be proposed.

The initial facility would be around 250,000 square feet and expandable to 500,000 square feet, she said.

FedEx ground is considering building the distribution hub at Corporate Woods, a 138-acre business park zoned heavy industrial. The site has 3,200 square feet of frontage to Interstate 24 and 2,200 square feet of frontage onto Joe B. Jackson Parkway.

Murfreesboro real estate developer/broker Johnny Jones owns the property along with Butch Smith of Crossville and Shelbyville residents John Bobo, an attorney, and David Howard.

Corporate Woods is located across the street from the Perfect Equipment and Pretoria Transit Interiors facilities.

When developing an incentive package, Weber said close attention is paid to the company’s proposed capital investment, number of new jobs created and the wages associated with the new, full-time jobs created.

The package must meet the minimum return on investment of three to one by the Rutherford County Industrial Development Board.

Erin Edgemon can be reached at 869-0812 and at eedgemon@murfreesboropost.com.

Tagged under BIZ, FedEx

Member Opinions:

By: diddlede on 7/31/08
Since Bridgestone decided not to locate here maybe, just maybe we can get FedEx. Good paying jobs with benefits hopefully for those families that need something more than part-time without any benefits.

By: devolver on 8/2/08
This would be great for the boro. It would attract other major distribution centers for places like NewEgg and Amazon, and various other online stores.

I just hate the location of it. But, all in the name of progress, I suppose.