February 7, 2018 4:15 PM, EST

UPS Gets $2.4 Million in Incentives for $41 Million Expansion Project in Texas

UPS Inc.

UPS Inc. wants to build a $41 million expansion to its El Paso, Texas, facility, and it plans to do so with more than $2 million in incentives from the city and the county.

The City Council on Feb. 6 approved a $2 million incentive package. It includes tax rebates, building fee rebates and construction materials tax rebates.

UPS ranks No. 1 on the Transport Topics Top 100 list of the largest North American for-hire carriers.

The council approved the incentives unanimously. City Rep. Cassandra Hernandez Brown was absent from the meeting.

RELATED: Analysis - UPS makes ahareholders wait to celebrate

Jon Barela, CEO of the Borderplex Alliance, said the group worked with the city and UPS to develop the incentive package.

The Borderplex Alliance is a regional economic development organization based in El Paso.

“This reiterates that El Paso is indeed a center for logistics and transportation for high wage jobs, and momentum for job creation continues in the region,” Barela said.

UPS officials declined to comment.

Also on Feb. 6, the county approved a $388,000 package for UPS over the course of 10 years.

El Paso County Judge Ruben Vogt said the UPS project in El Paso is one of several expansions across the nation.

“UPS has been a part of our community for over 40 years and as we grow, so too is the need for companies like UPS to address increased demand,” Vogt said. “Aside from the added jobs, we’re excited to see UPS invest in a new facility that will modernize its current operations. Providing the incentive is a win-win for our community and the company given this helps increase UPS’ capacity, while ensuring that our region’s residential and commercial customers receive efficient service, especially in light of the e-commerce boom across the nation.”

County Commissioner Vince Perez said the project was identified by partners at Borderplex as a strategic priority for the region that is intended to increase economic competitiveness through an investment in logistical and transportation infrastructure.

“By expanding these types of services, the region becomes more attractive for additional investments in the future. Today’s unanimous decision reflects the strong partnership and collaboration between the county, city and Borderplex Alliance to create greater job and investment opportunities in our community,” Perez said.