FedEx Breaks Ground on New Connecticut Facility
Construction will begin soon on a 525,000-square-foot FedEx Ground distribution hub in Middletown, Connecticut, at the former site of an Aetna campus.
Local and state officials participated in a groundbreaking May 12 with FedEx Ground, which says the distribution hub will create at least 400 jobs with the new center, scheduled to open in August 2018.
"This hub is part of a nationwide expansion," said Alex Kapinos, manager of the Northeast region. "Just this fiscal year we have invested $1.6 billion in our network expansion. The number of packages that we pick up, transport and deliver every day has more than doubled in 10 years. We're a growing company, and we need people from right here in the community to help us continue to grow."
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
A hub receives large shipments of packages, which are then taken to smaller facilities to be sent out for home distribution. Kapinos said the hub will improve delivery service in the Greater Hartford area and along the East Coast.
FedEx Ground purchased the 260-acre property from Aetna for $18 million in March, with Aetna retaining a 22-acre parcel to continue operating a data center.
Mayor Daniel Drew said before working with FedEx Ground, the city was working with two other companies on potential projects that fell through.
"We had a lot of fits and starts … with this property before FedEx Ground," Drew said. "I lamented not being able to close the deal two times before, and then when we worked with FedEx Ground. I can't tell you how happy I was that those other deals didn't happen. Without a doubt this is the highest and best use and this is the best company I can think of to be going into this property."
He said the Middlesex County Chamber of Commerce, the planning department, the building department and the Westfield Fire Department deserve credit for creating the comfortable business environment FedEx Ground needed to commit to a $220 million investment.
FedEx Ground applied for a state tax incentive program that will abate 80% of its tax bill for five years, and the state will reimburse the city for half of the abatement amount. The city would collect 60% of the total tax bill for the property for the first five years.
"This is really quite a remarkable company and quite a remarkable investment," Malloy said. "We're happy to see it taking place here in this wonderful town."
Aetna closed the Middletown campus in 2010 and demolished the buildings in 2011. The loss of jobs and tax revenue was a major blow to the city, officials said.
"It created a hole in our local budget but more importantly the activity, the commerce, the jobs that took place at this site for close to 30 years created a level of activity in our community that was unmatched," Drew said. "We worked together as a team to see this property restored to its former useful purpose."
