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UPS Plans Regional Hub in Arlington, Texas

03/29/2017
UPS plans to locate a regional hub in 1-million square feet of space at the Arlington Commerce Center Building E, which is under construction south of Interstate 20 near Bardin Road and SH 360, 15 miles east of Fort Worth, Texas.

The company plans to expand the facility by additional 200,000 square feet and invest approximately $105 million overall in personal business property , including modern, conveyer belt systems and other custom equipment. The new regional hub will allow UPS to accommodate e-commerce growth, particularly around the holiday seasons.

“Arlington has such an advantage, with its central location in the Dallas-Fort Worth region and easy access to major airports and highways,” Economic Development Manager Bruce Payne said. “For this kind of operation, we are in a good position. And with the economy humming along, companies are moving on that and we are reaping the rewards.”

According to city officials, the UPS hub is anticipated to improve the taxable value of the Arlington Commerce Center site, built by Exeter Property Group, by a minimum of $30 million.

The Arlington City Council has approved tax incentives to help United Parcel Service, Inc., open a regional hub in early 2019, a move that would bring an estimated 1,400 full-time jobs and fill one of the city’s largest warehouse/industrial spaces.

Arlington City Council unanimously approved an economic development deal with UPS that was four months in the making, Payne said. To help UPS offset costs required to modify the facility and get operations underway, the approved Chapter 380 program agreement will provide the company with a business personal property tax rebate of 85 percent for seven years, city officials explained.

Arlington will withhold approximately $93,000 a year from the rebate, which will allow the City to recoup $650,000 in economic development incentives previously granted to Exeter Property Group to facilitate construction of the 1 million square foot warehouse space.

Having that large of a space available for lease was key for Arlington to stand out among other possible north Texas locations for the UPS regional hub, Payne said.

The Chapter 380 agreement will provide UPS a net savings of approximately $71,600 a year in taxes to Arlington while still providing an additional $29,000 in tax revenue to the City.

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