BURLINGTON, Ky. (AP) - A package-delivery company is working on a $150 million expansion in northern Kentucky that will add dozens of full-time jobs and hundreds of part-time jobs.
As part of the project, FedEx Ground Package System wants to secure industrial building revenue bonds to help offset costs, The Kentucky Enquirer (https://cin.ci/2a5c4cw) reported.
The Boone County Fiscal Court heard a first reading for the revenue bonds on July 19.
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The FedEx expansion will add 62 new full-time jobs and 378 part-time jobs. The revenue bonds would help pay for construction, land purchase and filling the building.
County Administrator Jeff Earlywine said the project is a different type of economic development project than the county normally does.
“We usually employ elements of the Kentucky business incentive program to incent job growth and job creation and tax expansion to create new jobs and a portion of the wage assessments are applied and can then be used to support the project,” Earlywine said.
“We’re not using KBI in this particular project, it’s a little unique. There is not a high number of jobs but there is a significant amount of capital investment, about $150 million to be exact, half for real estate and building and half for tangible personnel property inside the building.”
The company has bought about 80 acres and will add 355,000 square feet of space to its existing distribution center. FedEx plans to spend about $7 million on land, $70 million on building construction, and $73 million on equipment, according to estimates provided by the company.
The new project would be exempt from 80 percent of county and state real estate and tangible taxes. FedEx would pay 20 percent of those taxes, but would pay the full amount of taxes for the school districts and others.
Judge-Executive Gary Moore said FedEx is a good resource for the county, because it brings other businesses into the area. FedEx currently has 116 full-time employees and 538 part-time employees.
Second reading for the ordinance is scheduled for Aug. 16.
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Information from: The Kentucky Enquirer, https://www.nky.com
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