United Parcel Service plans to establish a new shipping center in south Arlington that could result in the creation of 1,400 full-time jobs in the area.
The Arlington City Council on Tuesday is scheduled to consider tax abatements and grants to support the new UPS center, according to council documents. The agreement calls for UPS to invest $105 million in shipping center, create 500 full-time positions and 600 part-time positions by the end of 2019. In return, the city will rebate refund 85 percent of taxes accessed against business personal property for seven years, less $92,857 annually to account for the total benefit of an existing Chapter 380 agreement for Arlington Commerce Center Bldg. E.
“The new hub location is due to e-commerce volume growth, particularly around holiday seasons and the need to accommodate that growth. Per the agreement, UPS is required to create 500 full-time positions and 600 part-time positions, resulting in 800 full-time equivalent positions by December 31, 2019. However, UPS anticipates creating up to 1,400 full-time equivalent positions at this location,” according to a council report on the economic incentives for the project.
“Per the agreement, UPS is required to achieve a minimum added taxable value of $30 million the first year, $40 million the second year, $50 million in the third year, and maintain the $50 million value throughout the remainder of the agreement term, according to the council report.
The new shipping center, located at 2320 E. Bardin Road, is part of Exeter Property Group’s Arlington Commerce Center, located south of Interstate 20.