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UPS gets local approval to build $262 million NC facility

Two cities, Alamance County to offer $4.6 million in incentives

Coming to Mebane? (Photo: Jim Allen/FreightWaves)

UPS Inc. (NYSE:UPS) may be coming to Mebane, North Carolina.

Earlier this month, the Mebane City Council approved a “performance agreement” with the Atlanta-based transport and logistics giant to build a $262 million, 525,000-square-foot facility in Mebane’s North Carolina Commerce Park, according to the Mebane Enterprise, a local paper. Mebane is about 32 miles east of Greensboro. 

UPS will be able to process about 45,000 packages per hour at the facility, the paper reported. Mebane City Manager David Cheek told the paper that the company plans to create 451 full-time positions and an unspecified number of additional part-time jobs.

Kevin Zaletel, a senior project manager for UPS, told the City Council that the site would “allow us to build for our current needs. It would also allow us to build two future expansions for growth opportunities in the area,” according to the paper.

In a statement, UPS said the recent approvals “are part of the initial process to increase the speed and flexibility of our ground network in the greater Greensboro area for our customers. We look forward to our next steps, which include site feasibility, planning and design.” The company declined further comment.

Under the proposal, Mebane, the neighboring city of Graham and Alamance County plan to offer UPS incentives valued at more than $4.6 million, which include $3.9 million in cash incentive grants and a waiver of up to $150,000 in utility and connection fees, the paper reported. All three entities will share equally in the costs, the paper reported. UPS will also get free use of a 7-acre piece of land in the park jointly owned by Mebane and Graham, Mebane officials told the paper.

According to the paper, Cheek said the facility could generate $23.3 million in property taxes for the entities over the first 10 years, well in excess of the $4.6 million being invested.

A UPS spokesperson declined comment on UPS’ current presence in Greensboro, saying the company does not break out specific facility locations by geography.

Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.