Though FedEx Ground has been planning to build a large
distribution center near Lehigh Valley International Airport the past two
years, the company is now exploring an alternative site in South Bethlehem.
The facility would serve as a FedEx megahub for East
Coast shipments.
FedEx said this morning it is now exploring the
possibility of building its distribution center at Majestic Bethlehem Center,
next to Lehigh Valley Industrial Park VII off Route 412. The 441-acre site is
owned by Majestic Realty Co.
The vacant land FedEx Ground first considered covers
about 260 acres off Willowbrook Road in Allen Township, north of Lehigh Valley
International Airport. The FedEx facility would cost an estimated $300 million
after full build-out, and Rock-Lehigh Valley LLC, a wholly owned subsidiary of
The Rockefeller Group, is looking to buy the land from the airport for $9.9
million.
At the proposed site near the airport, Lehigh-Northampton
Airport Authority officials previously said the project would add 20
tractor-trailer trips to the roads during the morning’s busiest hour and 63
during the evening’s busiest hour. Tractor-trailers are restricted to only
traveling Race Street, Airport Road and Route 22.
In October 2013, the authority agreed to sell the land to
Rockefeller. In July 2014, the organization approved the agreement with
Rockefeller and a separate three-party agreement with Rockefeller Group and
FedEx Ground.
However, a legal battle has been impeding the development
process.
While he declined to go into details, an official from
FedEx Ground said there are legal issues between the Lehigh-Northampton Airport
Authority, The Rockefeller Group of New York City – the developer of the
project – and other private parties.
“We are committed to building a project in the area, and
the Allen Township location is our first and main choice, but because of time
constraints, we are looking at this potential site,” David Westrick, spokesman
for FedEx Ground in Moon Township, said this morning about Majestic Bethlehem
Center. “We are continuing to work with everyone at Allen Township, but we are
looking for alternatives at this point.”
The company’s goal is to break ground on the project this
spring, he said, though it is unknown which site FedEx would choose.
“The airport is our preferred location, but we need to
get this project up and running so we are considering an alternative site,” Westrick
said. “We are exploring an alternative construction site in Bethlehem to ensure
we are able to meet our capacity needs and business objectives within our
schedule.”
Bethlehem Mayor Bob Donchez said this morning that he
welcomed the idea of FedEx opening a site in the city, particularly at a
business park with other industrial tenants.
“I have not spoken to the end user at all, but if FedEx
is interested in the Majestic Center, it’s ideally located,” Donchez said. “The
improvements to Route 412 would be ideal. I would certainly move it on the fast
track as we have for Crayola, Wal-Mart and other tenants. The Majestic Center
is tailor-made for a project like FedEx.”
Indeed, the site’s proximity to roads such as Route 412
and Interstate 78, a significant employment base and its ability to be close to
its customers could help FedEx meet its goals for building a hub operation at
the Bethlehem site.
If FedEx builds in Bethlehem, it would be relatively the
same size as the project planned in Allen Township, Westrick said. The
operation could employ about 700 people at the opening, and, given growth and
the economy, could have up to 3,000 employees, he said.
“The FedEx project is obviously a significant project in
and of itself because of the job creation, but more importantly, it’s a
regional asset that’s already drawn interest from other companies that want to
be near a megahub,” Don Cunningham, president and CEO of Lehigh Valley Economic
Development Corp., said this morning. “For the Lehigh Valley to be the site of
this megahub on the East Coast, it becomes an important economic asset.”
Even if FedEx decides to build its project in South
Bethlehem, the Allen Township property is still prime land and Rockefeller
Group could acquire another tenant for that site, he added.
Cunningham said he was supportive of having the FedEx
project in the Lehigh Valley.
“The original time frame called for it to be already
operational by the end of 2015,” he said. “It’s understandable that they would
explore options to meet this time frame.”
Source: LVB
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