FedEx Ground to Build Distribution Center in Hermitage

HERMITAGE, Pa. – FedEx Ground plans to locate a 250,000-square-foot distribution center here on a 65-acre site fronted by the Tam O’Shanter golf driving range.

The company confirmed the project Thursday and city officials confirmed it Friday morning. Construction is expected to begin in June, said David Westrick, a spokesman for FedEx Ground in Moon Township.

“FedEx Ground has entered into a lease agreement on a new, 250,000-square-foot distribution center located on Hermitage Road in Hermitage that is expected to be operational in 2023,” said Westrick. FedEx Ground selected the Hermitage site because of its “ease of access to major highways, proximity to customers’ distribution centers and a strong local community workforce for recruiting employees,” he said.

A building permit application puts a $21 million price tag on construction of the project, not including costs of equipment to be installed, City Manager Gary Hinkson said. The plan will be reviewed by the Hermitage Planning Commission at its April 4 meeting.

The distribution center would be located on a 65-acre site at 2978 S. Hermitage Road that consists of the Tam O’Shanter driving range and two adjacent parcels that are being consolidated into a single parcel for development.

It will employ a mix of full- and part-time employees. FedEx Ground will also contract for package pickup and delivery services with service provider businesses that hire locally for drivers, helpers, managers and other positions, Westrick said. Employment numbers will be determined closer to the start-up date, based on business demands.

“We continue to experience significant package volume due to e-commerce growth and are optimizing the capacity of our network to meet growing demand for our services,” Westrick said.

Hermitage officials were informed a year ago that the city was one of several sites under consideration for a distribution center, Hinkson said. They were informed just recently about the identity of the end user for the distribution center, which will be developed by Scannell Properties, based in Indianapolis.

Hinkson complimented Scannell and its development team for their “professionalism and responsiveness” in working with the city.

“We are excited about this announcement. It is great news for the city of Hermitage and the region, and we want to welcome FedEx Ground to Hermitage and thank them for this significant investment in our community,” Hinkson said.

Members of the Shenango Valley economic development community welcomed news of the project Friday morning.

“I was pleasantly surprised and super excited to hear about the new 250,000-square-foot distribution center for FedEx Ground,” said Olivia “Libbi” Brown, executive director of the Shenango Valley Chamber of Commerce. “Not only will this be a great asset to the Shenango Valley in terms of showcasing the area but will produce local jobs for local residents to stimulate a strong workforce for the Valley.”

Rod Wilt, executive director of Penn-Northwest Development Corp., said his agency always supports projects that will positively impact on the Mercer County economy. The proposed development of 250,000 square feet of warehouse and distribution space “will certainly do that,” he said.

“Although our organization has not met with the developer or prospective tenant, nor have we received any request for financial assistance for the project, we stand ready to assist in any way possible,” Wilt said.

Hinkson said he is unaware of any requests for incentives on the part of FedEx Ground or Scannell, nor has the city offered any.

Pictured: FedEx Ground plans to locate a 250,000-square-foot distribution center on a 65-acre site in the city, which includes the current Tam O’ Shanter golf driving range and two adjacent parcels.

Copyright 2024 The Business Journal, Youngstown, Ohio.