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FedEx planning supply chain center near airport, creating 225 jobs

May 31, 2019

FedEx Supply Chain Inc., a division of the package delivery behemoth FedEx Corp., is asking Indianapolis officials for a tax break on a project it’s planning south of Indianapolis international Airport that would create 225 jobs.

FedEx would open the facility in the AmeriPlex industrial park, leasing 201,634 square feet in an existing 630,000-square-foot building, according to city filings. It plans to invest $9 million on logistics equipment, including racking and pallet-moving gear, boom lifts and safety equipment.

The firm has applied for a five-year, personal property tax abatement on the new equipment, which would save FedEx about $352,000 over the five years.

It expects to create 225 jobs at an average wage of $16.07 per hour by 2021. It also expects to hire part-time and seasonal employees as needed.

The Indianapolis Metropolitan Development Commission will consider the firm’s abatement request on Wednesday afternoon at the City-County Building.

Over the five-year abatement, FedEx Supply Chain still would pay about $234,000 in personal property taxes on the new equipment. After the abatement expires, it would pay about $88,000 annually.

Department of Metropolitan Development staff have recommended approval of the tax incentives.

FedEx currently operates a 328,000-square-foot SmartPost facility in AmeriPlex, as well as a 2.4 million-square-foot hub at the airport. The Supply Chain facility would not negatively impact activity or headcount at the existing facilities, FedEx told city officials.

FedEx Supply Chain helps small businesses with logistics needs but without the necessary infrastructure. It specializes in transportation, warehousing and distribution, as well as handling reverse logistics processes such as returns and recycling.  

 

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