Tuesday, February 10, 2015

Target to put e-commerce facility in York County, create 250 jobs: Project Pegasus is revealed and taking off.



Target Corp. will establish an e-commerce fulfillment center in West Manchester Township, York County, creating more than 250 new jobs initially.

The company received a funding proposal from the Department of Community and Economic Development including $512,000 in job creation tax credits and $115,200 for guaranteed free training that will be used to train the expanding workforce. It also received a Local Economic Revitalization Tax Assistance designation for the warehouse it plans to lease at 325 S. Salem Church Road.


The company plans to expand the existing 624,800-square-foot Class A bulk warehouse/distribution facility that was home to American Signature Furniture by about 160,000 square feet. With the estimated $8.5 million investment in the expansion, Target would invest more than $52 million in capital improvements at the site.

The LERTA would provide a 10-year tax abatement on the value of the expansion. The property is owned by 325 Salem Property LP. Endurance Real Estate Group LLC of Bala Cynwyd, the property management firm and a part owner of the property, worked with the York County Economic Alliance to shepherd the LERTA request through the various taxing bodies. The York County commissioners, West Manchester Township supervisors and the West York Area School Board had to agree to the request.

"It's a great day in York County," said YCEA President and CEO Darrell Auterson, who added that his team had been working with Target's consultant for months to land the facility.

He said the quality and number of jobs coming from the project will be a big boost to the York County economy.

"I think it demonstrates our logistical location is really in the sweet spot for the Mid-Atlantic and North East."

Mike Robbins, Target’s senior vice president of distribution, cited the location as a reason for the company picking York County.

“With more than 60 stores and a regional distribution center in Pennsylvania, we serve many Target guests in the state and already know that Pennsylvania is a great place to do business,” he said in a news release from DCED. “Today, we are excited to expand our presence in Pennsylvania, and we look forward to serving our guests throughout the state and across the region even more quickly and efficiently from this new online fulfillment center in York.”

The facility will be managed by a third-party vendor, Genco. Hiring for the new facility is to begin in the coming months, and the fulfillment center is to be operational around mid-year, DCED spokeswoman Lyndsey Kensinger said.

The York County location was one of two being considered by Target, whose identity was kept secret during the LERTA discussions. At public meetings, the company was known as Project Pegasus. It is not known what other location was being considered.

"We'd like to know who our stiffest competition was," Auterson said.

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