Xpedx moving to WyCo

Archive for Wednesday, August 15, 2012

August 15, 2012, 3:27 p.m.

Updated: August 16, 2012, 12:00 a.m.

The Wyandotte County Economic Development Council announced Tuesday in a news release that the company Xpedx and its 180 employees will be relocating to Wyandotte County.

The Edwardsville City Council voted Monday to approve an application for Industrial Revenue Bonds paving the way for Xpedx’s request to build a 280,000 square-foot distribution facility, which includes 30,000 square feet of office space, at 2552 S. 98th St. City staff reported the project would initially include 180 jobs and plans to add 20 or more jobs over the next five years.

The project will be among the first mega distribution facilities built by the company, the economic development council stated. The company will be relocating from Olathe to the new facility in Edwardsville. The capital investment for the project is in excess of $11.9 million. Edwardsville was chosen as the new location because of highway access, existing utilities, speed to market and available incentives.

Xpedx is a $7 billion premier distribution business of International Paper, a $25 billion global company headquartered in Memphis, Tenn.

“Xpedx’s choice to relocate to Edwardsville is another example of the economic development collaboration between the city of Edwardsville, the State of Kansas and the Wyandotte Economic Development Council,” Edwardsville Mayor John “Tiny” McTaggart said in the news release. “We are truly pleased that Xpedx has chosen to not only stay in Kansas, but to move to Edwardsville.”

According to information provided to the council, the company would receive a 60 percent, 10-year property tax abatement. The agreement includes a fixed payment-in-lieu of tax schedule that results in the approximately 60 percent tax abatement.

“This expansion by Xpedx is welcome news and will add to the growing distribution hub forming around the Edwardsville area,” Kansas Commerce Secretary Pat George said in the news release. “Xpedx is a strong company, providing services in a wide variety of industries, and I wish its employees continued success in the future.”

The item was listed on the city council’s agenda as issuance of bonds to OBP Kansas LLC, a Tennessee limited liability company. The agenda did not mention the Xpedx name. When the city council first discussed the matter last month, city staff wasn’t aware who would occupy the building.

The project is being developed by H&M Co. Inc., a national engineering and construction firm headquartered in Tennessee. Zimmer Cos. led the local real estate team.