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FedEx delivers big news to Stewartville


Mon, Jun 18th, 2012
Posted in Business Announcements

By Wendy Wilson

The surprise was finally delivered at Stewartville’s city council meeting Tuesday, June 12.

FedEx Ground will soon be opening a ground shipping distribution center inside Stewartville’s Schumann Business Park located on Highway 63. Construction of the facility is anticipated to start as soon as possible.

“Today, all the checks came in and the city was paid in full,” City Administrator Bill Schimmel Jr. said prior to revealing the new business park tenant’s identity.

FedEx had requested their name be withheld from the public as a courtesy until June 12, Schimmel explained.

“You want to get exciting news out like this as soon as possible because it’s great news, especially the way the economy’s been,” Schimmel said. “To pick Stewartville is a huge, great thing.”

The new facility will operate in conjunction with an existing facility in La Crosse, Wis., according to FedEx Ground spokesperson David Westrick.

“We need another facility to serve the demand in the area,” Westrick said. “It’s definitely good news.”

The facility is anticipated to be larger than its existing counterpart, spanning about 60,000 square feet.

“It’s always an issue that it is large enough for recruiting employees when they are needed,” Westrick said.

FedEx plans to hire employees locally for full-time as well as part-time positions. Westrick was unable to provide the number of positions likely to become available in conjunction with the facility at this time.

Westrick anticipates construction of the building will be completed and FedEx will be operating in Stewartville by July 2013.

Stewartville residents cheered the arrival of their new neighbor.

“This is so exciting,” said Stewartville resident Wendy Timm during the open mike portion of the meeting. “I just want to thank everybody who supported it. It’s a big thing for our city.”

The City of Stewartville received $896,000 from Jones Development Company for the purchase of seven and one-half acres of land located within the Schumann Business Park.

The city’s portion of the project was estimated at costing nearly $1.3 million, including road and utility improvements and payment to the Schumann family for the land.

Blitz Construction was awarded the contract for the improvements after submitting a $627,788 bid for the project. The city’s portion of the project will be paid from the sale proceeds, a federal revolving loan, TIF funds and a business infrastructure grant.

The Stewartville facility will further FedEx’s goal to expand and increase service and speed capabilities, according to Westrick.

He described FedEx’s implementation of a “hub and spoke” business model.

“Packages are transported to and sorted in central locations,” he said. “[The Stewartville] facility will provide service to the local area.”

Packages will arrive in trailers early in the morning at the Stewartville location where they will be sorted and loaded onto delivery vans for distribution to their final destinations.

FedEx has opened 11 new hubs since 2005 and relocated or expanded more than 500 local facilities.

“Hopefully, we’ll look for good things to come,” Schimmel said. Construction machinery arrived at the site on June 14, according to Stewartville Finance Director Barb Neubauer.

Schimmel said, “Everybody seems raring to go.”

The next council meeting will be held Tuesday, June 26 at 7 p.m. at City Hall.

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