New Haven City Council members have agreed unanimously to grant two tax breaks for FedEx Ground Package System Inc. at a new $25 million distribution center.
The center will be built in Gateway Park, a site designated as an economic revitalization area at an earlier meeting – a preliminary step for tax abatement.
The vacant 40-acre site is owned by Setzer Properties ZFWY LLC. The landlord has agreed to invest about $12.5 million to construct a 178,000-square-foot warehouse/distribution center.
The council Tuesday granted two five-year tax phase-ins, one on a $14 million investment in the land and building and one on a $13 million investment on new equipment, saving the company more than $1 million over five years.
Mayor Terry McDonald was pleased.
Its a $25 million investment in a place that has always been a field since I came here in 1979, McDonald said.
It has been an underused area, he said. Its now a catalyst for development.
The city has hired a developer to lure other businesses to the industrial park, near Minnich Road between U.S. 30 and Lincoln Highway.
The international shipping companys plans will create 87 part-time jobs at the new distribution center and bring 107 existing jobs from the current center at 2742 Wayne Haven St.
The companys current payroll of $2.6 million will swell to almost $3.7 million with the new hires, McDonald said.
Construction is expected to begin May 1 with completion in September 2014.