FedEx Distribution Center to open soon

The FedEx Distribution Center in Maxwell Industrial Park is about 65 percent complete and expected to open within the next two to three months. In early December, the Texarkana, Ark., Board of Directors unanimously passed a resolution certifying FedEx to participate in the state's Tax Back Program.
The FedEx Distribution Center in Maxwell Industrial Park is about 65 percent complete and expected to open within the next two to three months. In early December, the Texarkana, Ark., Board of Directors unanimously passed a resolution certifying FedEx to participate in the state's Tax Back Program.

The new FedEx Distribution Center in Maxwell Industrial Park is expected to open in the next two to three months, a Texarkana, Ark., city official said.

"They are about 65 percent complete. We are excited. We have been working hand in hand with no hiccups. The weather has delayed us some, but that was to be expected," said Dr. Kenny Haskin, Texarkana, Ark., city manager.

Haskin said some stipulations for adverse weather had been added into construction and development plans.

He anticipates the plant will open in the next two to three months.

In early December, the Texarkana, Ark., Board of Directors unanimously passed a resolution certifying FedEx to participate in the state's Tax Back Program,for the FedEx Distribution Center in Maxwell Industrial Park.

About 60 jobs will be created through the investment, full-time jobs paying more than $20 per hour and part-time paying $11.07 per hour.

The 130,000-square-foot center is a $12 million to $15 million investment in the park and will involve the development of 15 to 23 acres. The overall economic effect, including the construction phase, is an estimated $25 million, said Haskin.

"This has been in the works for about a year and a half, and our city manager has been involved since the conception," Mayor Ruth Penney-Bell said in December. "This was all hush-hush until he could work on this and see it to fruition. It has been at least 15 years since there has been anything out at Maxwell Park, and that has been too long. This will bring good jobs, and we will see a considerable boost in our economy."

Penney-Bell said FedEx could not be brought to the area at any better time as economic times are still tough in the area.

"We are still basically in a recession. I don't care what surveys you see," Penney-Bell said. "We all know people aren't living as well as well as they once were."

Haskin said the board's approval for the incentive moved the deal forward.

FedEx is able to use the state's Tax Back Program, which is a sales and use tax refund for targeted businesses. The incentive program provides a refund of sales and use taxes paid on purchases of building materials and taxable machinery and equipment associated with the approved project for targeted businesses, Haskin said.

The easiest way to explain how the process works is to think about what would happen if you went to pick up groceries and after you paid, they refunded your sales tax for the items, he said. Haskin said not many cities in the state take advantage of the program either, because they are not aware of it or because their cities did not have the staff to do the research. The program is offered through the Arkansas Economic Development Commission. Haskin said he was pleased negotiations with FedEx took place so quickly.

"This deal taking a year and a half is sort of a short period," Haskin said in December. "Normally, this kind of a project would take three or four years. Relationship-building is key. There were eight other locations being considered for this. You have to be aggressive. You have to get your feelings hurt, and you have to get back up and go after they say no and do it again." This kind of program allows Arkansas a tool to attract industry in spite of the its high sales taxes. Arkansas is 47th in heaviest sales taxes in the United States. The heavy sales tax charged in Arkansas makes it particularly difficult for a twin city such as Texarkana, Ark., to compete with surrounding states such as Texas, Louisiana and Oklahoma, because all have lower sales taxes.

FedEx had to invest at least $100,000 and meet the eligibility criteria of the Targeted Business Payroll Income Tax Credit Program.

Maxwell Industrial Park is adjacent to the Texarkana Regional Airport and connects to Interstate 30 via Interstate 49, which runs through the park.

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