Dollar General Corp., one of the nation’s largest small-box discount retailers, is planning to build an approximately 1-million-square-foot distribution center in Janesville, Wisconsin. The company plans to hire 552 full-time employees by 2019.
“I want to thank the City of Janesville, Rock County and the State of Wisconsin for their support of our project to build a new state-of-the-art distribution center in Janesville,” said Todd Vasos, CEO, Dollar General.
“With 122 stores in Wisconsin and more than 900 employees, Janesville offers an ideal location to service the growing needs of our business in the Upper Midwest. Janesville provides a great location, a strong business environment and a great workforce to draw from to fill the 552 jobs that are anticipated to be created by this new distribution center,” he added.
Dollar General considered locations in two other Midwest states before choosing Wisconsin for its expansion, according to the Wisconsin Economic Development Corporation. Among the company’s criteria for selecting the best location for its new facility was the cost of doing business at the site, including up-front expenses. Negotiations with the WEDC, local and county representatives produced an incentive package that ultimately drew Dollar General’s commitment to Wisconsin.
“WEDC proudly welcomes Dollar General to Wisconsin,” said Tricia Braun, Deputy Secretary/COO of WEDC, the state’s lead economic development agency. “Our continued success in attracting new, national and global leading companies to our state shows that our business-friendly policies and programs are working.”
WEDC is supporting the establishment of Dollar General’s Wisconsin distribution center by providing $5.5 million of potential tax credits to the company through 2019. The agency’s Enterprise Zone Tax Credit Program, which gives preference to areas of the state with the greatest economic need and targets projects with significant capital investment and job creation potential, was drawn upon to attract Dollar General to Wisconsin.
The contract with WEDC requires Dollar General to create 552 new positions with an average starting wage of $15.57 per hour and make a capital investment of $75 million in the Janesville facility.
According to the WEDC, a financing package for the proposed project is pending approval by the Janesville City Council. The City of Janesville is considering two Tax Increment Financing Development Agreements, and the project will also benefit from a State Transportation Economic Assistance grant. If approved, the Janesville location will be the company’s 14th distribution center nationwide, which Dollar General needs to support its steady growth, WEDC officials said.
In addition to the direct economic benefit Janesville and its surrounding area will receive as a result of this project, WEDC estimates a total of 1,073 jobs would be positively impacted by Dollar General’s new facility within five years. This forecast takes into account the construction jobs that result from the project as well as the ripple effects the increased employment will have on the local economy, all of which is predicted to raise state income taxes by over $13 million over the course of the contract.
“This project provides a visible example of how strategic alignment, collaboration and positioning generate positive outcomes,” said James Otterstein, Economic Development Manager with the Rock County Development Alliance.