TOWN OF FLORIDA — Dollar General is developing plans to construct a second distribution center on Route 5S in the town of Florida.
The new 150,000-square-foot facility would serve as a perishable goods distribution center serving existing and future Dollar General stores throughout the region, according to an application to the Montgomery County Industrial Development Agency.
The approximately $35 million project would be built on roughly 21 acres across from the existing distribution center on Route 5S out of a 54-acre parcel owned by the MCIDA. Dollar General estimated the cost of acquiring the land from the county agency at $420,000.
The company is seeking financial assistance from the MCIDA in the form of tax breaks, including $2.5 million in exemptions from state sales and use taxes and $2.2 million in real property tax exemptions.
If a payment in lieu of tax agreement is ultimately approved, Ken Rose, economic development director for Montgomery County, on Wednesday said the property would generate more property tax income than it does now as an exempt county-owned property.
Annual county and school district taxes would likely start around $64,480 under a 15-year PILOT agreement at existing rates based on the projected property value assessment before gradually climbing towards the full payments.
Within three years of construction the project is expected to create approximately 150 full-time jobs with an average annual salary of about $39,520. Dollar General is targeting project completion by the end of April 2024.
Based on the level of investment and job creation involved, Rose said it is appropriate for the MCIDA to consider a PILOT agreement for the project that would still help strengthen the local tax base.
“That’s extremely important for the overall economy,” Rose said. “It’s definitely an overall benefit for the county and the community.”
The MCIDA will consider scheduling a future public hearing on the project and Dollar General’s application to the agency during its regular meeting later today. Rose noted the agency will not make any decisions until the project is approved by the town of Florida Planning Board.
“We can run our process simultaneously, but we don’t officially approve the project until they’ve gone through all the local and state permitting processes,” Rose said.
Dollar General is expected to submit a site plan application to the town imminently, according to Rose. He expects the review process will last about three to four months.
Despite the tight labor market, Rose indicated Dollar General’s apparent confidence that it will be able to secure enough workers to fill the projected number of jobs and to pursue another project across from its existing facility.
“Any company when looking into an area looks at the labor pool,” Rose said. “In this instance, they already have a presence here.”
The company’s existing 750,000-square-foot distribution center on Route 5S was expected to create 430 jobs after the $91 million facility opened in 2019. The site employed 547 full-time equivalent workers in 2020, according to a report from the MCIDA.
The existing distribution center was built on roughly 102 acres purchased from the MCIDA for approximately $1.54 million in 2017, according to property records filed in the Montgomery County Clerk’s Office.
The MCIDA approved a 15-year payment in lieu of tax agreement for Dollar General’s previous project that was estimated to provide a tax break totaling about $15.6 million.
Dollar General’s latest project proposal was first reported by the Albany Business Review.
Representatives of Dollar General did not immediately return a request for comment for this story on Wednesday.
Reach Ashley Onyon at [email protected] or @AshleyOnyon on Twitter.
