The announcement was accompanied by news that the project would be receiving a Job Creation Tax Credit from the state of Ohio for a period of 10 years. A local economic incentive is also pending.
The project is slated to create more than 800 jobs over a five-year period that will include material handlers, packers, sorters, equipment operation, truck drivers, counters, maintenance, administration, supervisors and managers, representatives of the company said in a news release Monday.
“Gabe’s is thrilled to join the incredible Springfield community,” said Jason Wolter, Executive Vice President and Chief Operating Officer for Gabe’s. “It is our commitment to build a state-of-the-art facility and run a top-tier operation that will contribute positively on behalf of all Ohioans.”
Gabe’s, which is a home, apparel and footwear retailer, is expected to start hiring by the fall of next year for the distribution center, which will be located at 1801 Prime Parkway.
“We are thrilled that Gabriel Brothers has made the decision to invest in Springfield after seeing all that our community has to offer,” said Springfield Mayor Warren Copeland. “With close to one million square feet and over 800 jobs at Prime Ohio II, this is a huge win for our community and continues the upward momentum that we have seen over the last several years.”
The distribution facility will be more than 850,000 square feet and can be expanded in the future to 1.3 million square-feet depending on the needs of the company, according to the Community Improvement Corporation of Springfield and Clark County.
“Projects like this are a tremendous return on our county’s economic development partnership investment,” said Melanie Wilt, President of the Clark County Commission. “We’re able to increase opportunities for all of our residents with each new living wage job created here in Springfield and Clark (County).”
The Community Improvement Corporation of Springfield and Clark County has been in talks with developer NP Springfield Industrial LLC, who is working on behalf of Gabe’s, since May regarding the proposed distribution facility.
“From our first discussions with site developer Northpoint Development and the company’s consultant, JLL, we knew Gabe’s would be a great addition to our community,” said Horton Hobbs IV, Vice President of Economic Development for the Greater Springfield Partnership.
“Gabe’s vision for growth aligned with the community’s location and unmatched workforce,” added Hobbs, who also is part of the CIC.
That included talks regarding the sale of land at the Industrial Park to NP Springfield, also known as Northpoint Development, for $42,000 per acre for a total of approximately $4.7 million for the 114 acres of property that the distribution facility will sit on.
The CIC owns the land at Prime Ohio II and that industrial park was completed in 2014 in order to aid local development efforts in the area.
Gabe’s existing distribution centers work with 119 stores throughout West Virginia, Delaware, Georgia, Kentucky, Indiana, Ohio, North Carolina, New York, New Jersey, Pennsylvania, South Carolina, Tennessee and Virginia, according to a news release from the company.
The closest Gabe’s retail outlet to Springfield is on North Fairfield in Beavercreek.
“Ohio’s economic outlook is strong, and the fact that Gabe’s chose Ohio for its largest fulfillment center in the nation is a testament to substantial advantages of doing business here,” said Ohio Gov. Mike DeWine. “Ohio is proud to support this economic growth in Clark County through assistance from JobsOhio and the Ohio Department of Development, and we are looking forward to seeing this fulfillment center and its 800 new employees thrive.”
The state announced Monday the approval of assistance for 12 projects set to create 2,426 new jobs and retain 3,252 jobs statewide. That announcement included Gabe’s slated distribution center in Springfield.
A news release from the Ohio Department of Development stated that Gabe’s is expected to create the equivalent of 833 full-time positions, generating $27.8 million in new annual payroll as a result of the company’s new project in Springfield.
As a result the Ohio Tax Credit Authority approved a 1.488 percent, 10-year Job Creation Tax Credit for the project, the release stated.
In addition to that, a local economic incentive is pending final approval. It is an enterprise zone agreement that will provide a 100% tax abatement for 15 years regarding the property at 1801-1830 Prime Parkway.
That abatement was approved by the Clark-Shawnee Local Board of Education in August and is expected to be voted on by Springfield City Commissioners in October.
By the numbers
833 - Number or equivalent full-time jobs to be created by Gabe’s in Springfield as a result of its new distribution center
27.8 million - Estimated annual payroll as a result of Gabe’s project in Springfield
850,000 - Number of square footage of slated distribution center in Springfield
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