UPS will build a 225,000-square-foot package-distribution and warehouse facility in Round Rock following an economic development deal approved by City Council on May 12.
The council approved an economic development agreement with United Parcel Service Inc., otherwise known as UPS, to open a warehouse and distribution facility as well as hire at least 314 full-time equivalent employees.
The agreement states UPS will purchase approximately 50 acres of land and invest at least $70 million in facility improvements and personal property. The package-processing facility will include automated sorting systems and will house approximately 300 UPS delivery vehicles. The Round Rock building is expected to open at the end of 2018.
“This new facility in Round Rock will provide additional pickup and delivery service to UPS customers throughout the area so they can focus on growing their business,” said Craig Wiltz, president of UPS’s Red River District, in a statement.
In exchange for building the facility, the city will refund 100 percent of UPS’ property taxes for 2019-21, 75 percent of its property taxes from 2022-23, 50 percent in 2024-25 and 25 percent in 2026.
Furthermore, the city will provide UPS an additional economic incentive payment of $250,000 in 2019 and 2020, for a total of $500,000.
Ben White, vice president of economic development for the Round Rock Chamber, which handles economic development in the city, said the project came to the chamber in February 2015 through Opportunity Austin, which is a collaboration among economic development entities in the area.
“UPS was looking regionally for this new distribution center, and they met with several communities and went through a pretty exhaustive process,” he said. “Here we are a year and a half later, and they found a home in Round Rock. We’re excited to have them.”
White said UPS came to Round Rock because of the projected growth in Williamson County as well as the business-friendly atmosphere in the city.
White said UPS will be one of the top property taxpayers in the city after the facility is operating and its economic development deals have expired.
UPS Spokesperson Dan Cardillo said the new facility will supplement existing UPS facilities in the area, including one in Northeast Austin.
The new facility’s team will provide pickup and delivery services to UPS customers in the Greater Austin area. In 2014, UPS announced two new distribution facilities in the Dallas-Fort Worth area and the expansion of its distribution and sorting facility in San Antonio in May.