Online retailer Newegg plans big distribution center

September 13, 2013

Online electronics retailer Newegg.com is eyeing the Ameriplex World Connect park for a Midwest fulfillment and distribution center that would employ 150 people by the end of 2015.

The southern California-based company says it would put $15 million in new logistics and information technology equipment into a nearly 800,000-square-foot building at 6161 Decatur Boulevard, taking up more than half the space. The city's Department of Metropolitan Development is recommending a seven-year partial tax abatement in exchange for the investment.

Newegg also says it would hire 150 people through 2015 at an average pay of $11.50 per hour, according to a DMD staff report prepared for the Metropolitan Development Commission. The commission will hold a public hearing on the abatement proposal Oct. 16. 

DMD staff said Newegg is considering several sites for the Midwest facility, but did not mention the other locations.

Ameriplex developers are optimistic about Newegg's arrival. The company would set up shop in a recently completed logistics facility built on a speculative basis. They've already broken ground on a second spec building in the World Connect Park, based on Newegg's plans, according to city staff.

The Newegg investment would add $5.9 million to the tax base, and the company would pay $441,508 in personal property taxes over the life of the seven-year abatement, according to DMD. The abatement would save the company $723,421, or 62 percent of its tax bill, over that period.

After the abatement expires, the company is expected to pay $134,415 in annual personal property taxes.

Newegg, founded in 2001, says it is the country's leading electronics-focused Web retailer, with 18 million registered customers and $2.5 billion in annual revenue.


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