UPS expansion approved @SDF
06-05-2005, 08:39 PM
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UPS expansion approved @SDF
EXCLUSIVE REPORTS
From the June 3, 2005 print edition
UPS airport expansion cleared for takeoff
Brent Adams
Business First Staff Writer
A 50-year-old warehouse complex that has anchored the northwest corner of Grade Lane and Fern Valley Road for a half-century is slated to come down next week to make way for United Parcel Service Inc.'s latest expansion at Louisville International Airport.
UPS, which last December bought Menlo Worldwide Forwarding Inc. for $150 million in cash, is moving forward with plans to build an $82 million, 700,000-square-foot heavy-freight air hub at Louisville International Airport.
The facility will replace a heavy-freight hub operated by Menlo in Dayton. UPS plans to close that hub in mid-2006.
UPS began leasing about 6 acres and three buildings, totaling 450,000 square feet, from the Louisville Regional Airport Authority on June 1. The site had been occupied by local logistics company Dixie Warehouse Services LLC.
In the coming months, the airport authority will sell UPS the three warehouse buildings and a total of 20 acres -- including the 6 leased acres -- to accommodate the expansion, said airport authority general manager Skip Miller. He declined to disclose the sale price of the land.
Demolition is expected to be complete by mid-July, with construction to begin on the new facility shortly thereafter.
The first phase of the new facility will open in May 2006, with the second opening two months later, said Patti Hobbs, Louisville-based division manager of public relations and internal communications for UPS.
Indianapolis-based Hunt Construction Group will serve as general contractor for the facilities, which were designed by Louisville-based Godsey & Associates Architects. Cincinnati-based O'Rourke Wrecking Co. is handling demolition of the former Dixie warehouses.
"This is a great opportunity for UPS," Miller said. "It opens up a whole new element and customer base for them, which provides even greater stability for the airport and the community."
Project could add 1,000 jobs
The expansion is expected to create 120 full-time and 600 part-time jobs in Louisville and generate an additional annual payroll of about $12 million.
The project, which received preliminary approval for up to $20 million in state tax incentives over 10 years, could create another 280 full-time jobs during the next decade.
"We are excited to bring this (hub) to the community," Hobbs said. "It not only means new jobs for the area, but the potential for additional growth and expansion on a number of different levels."
Dixie finds space south of airport
Dixie Warehouse officials were sent scrambling after they were informed on March 16 that the company's lease on the property was not being renewed and it would be required to relocate within 90 days, said Dixie Warehouse partner and vice president Richard L. Staab.
Dixie Warehouse provides contract and public warehousing to about 125 customers, including Ford Motor Co., DuPont Dow Elastomers LLC and Lexmark International Inc.
Late last month, the company completed a move to the Louisville Industrial Center, at 7929 National Turnpike in south Louisville.
"When UPS announced it would expand after purchasing Menlo, we didn't have any inkling that it would affect us," Staab said. "But with all the airport expansion we've seen over the past 15 years, whenever (the airport authority or UPS) start talking, you'd better be paying attention because it could affect you."
Dixie move considered interim
Although it was a tremendous undertaking to relocate the contents of about 450,000 square feet of warehouse space -- work was done during overnight shifts using various local trucking companies over a seven-week period -- Dixie Warehouse might have another move in its future.
Calling the move to the Louisville Industrial Center an interim solution, Staab said the company's principals will continue to look for opportunities to consolidate operations.
Dixie Warehouse has leased four buildings at the center, each with different owners and leasing terms, Staab said. The company also continues to lease three other warehouses across the county.
"This was all very spur-of-the-moment, so we were lucky to be able to find this space," Staab said. "I don't know what kind of opportunities are out there to take advantage of in the future, but we are considering our options."
From the June 3, 2005 print edition
UPS airport expansion cleared for takeoff
Brent Adams
Business First Staff Writer
A 50-year-old warehouse complex that has anchored the northwest corner of Grade Lane and Fern Valley Road for a half-century is slated to come down next week to make way for United Parcel Service Inc.'s latest expansion at Louisville International Airport.
UPS, which last December bought Menlo Worldwide Forwarding Inc. for $150 million in cash, is moving forward with plans to build an $82 million, 700,000-square-foot heavy-freight air hub at Louisville International Airport.
The facility will replace a heavy-freight hub operated by Menlo in Dayton. UPS plans to close that hub in mid-2006.
UPS began leasing about 6 acres and three buildings, totaling 450,000 square feet, from the Louisville Regional Airport Authority on June 1. The site had been occupied by local logistics company Dixie Warehouse Services LLC.
In the coming months, the airport authority will sell UPS the three warehouse buildings and a total of 20 acres -- including the 6 leased acres -- to accommodate the expansion, said airport authority general manager Skip Miller. He declined to disclose the sale price of the land.
Demolition is expected to be complete by mid-July, with construction to begin on the new facility shortly thereafter.
The first phase of the new facility will open in May 2006, with the second opening two months later, said Patti Hobbs, Louisville-based division manager of public relations and internal communications for UPS.
Indianapolis-based Hunt Construction Group will serve as general contractor for the facilities, which were designed by Louisville-based Godsey & Associates Architects. Cincinnati-based O'Rourke Wrecking Co. is handling demolition of the former Dixie warehouses.
"This is a great opportunity for UPS," Miller said. "It opens up a whole new element and customer base for them, which provides even greater stability for the airport and the community."
Project could add 1,000 jobs
The expansion is expected to create 120 full-time and 600 part-time jobs in Louisville and generate an additional annual payroll of about $12 million.
The project, which received preliminary approval for up to $20 million in state tax incentives over 10 years, could create another 280 full-time jobs during the next decade.
"We are excited to bring this (hub) to the community," Hobbs said. "It not only means new jobs for the area, but the potential for additional growth and expansion on a number of different levels."
Dixie finds space south of airport
Dixie Warehouse officials were sent scrambling after they were informed on March 16 that the company's lease on the property was not being renewed and it would be required to relocate within 90 days, said Dixie Warehouse partner and vice president Richard L. Staab.
Dixie Warehouse provides contract and public warehousing to about 125 customers, including Ford Motor Co., DuPont Dow Elastomers LLC and Lexmark International Inc.
Late last month, the company completed a move to the Louisville Industrial Center, at 7929 National Turnpike in south Louisville.
"When UPS announced it would expand after purchasing Menlo, we didn't have any inkling that it would affect us," Staab said. "But with all the airport expansion we've seen over the past 15 years, whenever (the airport authority or UPS) start talking, you'd better be paying attention because it could affect you."
Dixie move considered interim
Although it was a tremendous undertaking to relocate the contents of about 450,000 square feet of warehouse space -- work was done during overnight shifts using various local trucking companies over a seven-week period -- Dixie Warehouse might have another move in its future.
Calling the move to the Louisville Industrial Center an interim solution, Staab said the company's principals will continue to look for opportunities to consolidate operations.
Dixie Warehouse has leased four buildings at the center, each with different owners and leasing terms, Staab said. The company also continues to lease three other warehouses across the county.
"This was all very spur-of-the-moment, so we were lucky to be able to find this space," Staab said. "I don't know what kind of opportunities are out there to take advantage of in the future, but we are considering our options."
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