Discount retailer Five Below, which has more than two dozen stores in Indiana, plans to spend at least $105 million to build and equip a huge distribution and e-commerce center in Shelby County that would employ up to 470 people.
The facility would be built on a 100-acre site in Pleasant View at the northeast corner of McGregor and Carroll Roads, adjacent to Interstate 74’s Exit 101.
According to public documents, the distribution facility would be at least 850,000 square feet in its first phase. Development representative Shannon O’Hare, managing director of Cushman & Wakefield’s business incentives practice, told county officials the building could expand to nearly 1.4 million square feet in a second phase.
The cost of land acquisition and building construction is expected to about $65 million, with about $40 million in equipment costs, she said. The payroll would be about $17.3 million, or an average wage of nearly $17.75 per hour, plus benefits.
Construction in the initial phase has a tentative completion date of November 2022, with work on outfitting the facility expected to continue until at least October 2023, documents indicate. Construction is expected to start on the development this month.
The Shelby County Council has approved a pair of tax abatements for the project, which are expected to save the company thousands of dollars over 10 years.
It’s not clear exactly how much the company will save from the tax abatements. One abatement for real property will last 10 years and run on a sliding scale. The second—for personal property and equipment—will last five years.
It’s unclear whether the state is offering any incentives for the project.
The new distribution facility would be Five Below’s sixth, along with locations in Mississippi, Georgia, Texas, New Jersey and Arizona. It would also serve as the company’s e-commerce hub, to handle growing demand from its website.
Formed in 2002, Pennsylvania-based Five Below is a publicly traded company with more than 1,000 stores in 38 states.
The company has 26 stores in Indiana, including nine in the Indianapolis area. The most recent to open was in Noblesville, as part of a new strip mall near Hamilton Town Center. Another is planned for Glendale Town Center.
Shelby County Development Corp. Executive Director Brian Asher declined to comment, citing ongoing negotiations with the company.
Five Below did not immediately return a message requesting comment.