Springfield commissioners approve local incentive related to $77.5M distribution center

Springfield City Commissioners have approved a local economic incentive for Gabriel Brothers Inc., also known as Gabe’s, that plans to invest $77.5 million into a new 850,000 square foot distribution center in the area.
Caption
Springfield City Commissioners have approved a local economic incentive for Gabriel Brothers Inc., also known as Gabe’s, that plans to invest $77.5 million into a new 850,000 square foot distribution center in the area.

West Virginia-based Gabriel Brothers, a department store chain, investing in city.

Springfield City Commissioners have approved a local economic incentive for a company that plans to invest $77.5 million into a new 850,000-square-foot distribution center.

Commissioners approved an ordinance recently that will allow for a tax abatement to the West Virginia-based discount department store chain Gabriel Brothers Inc., also known as Gabe’s.

The ordinance relates to an Enterprise Zone Agreement between the city, Gabe’s and developer NP Springfield Industrial, which is working on behalf of the department store chain.

ExploreReport card shows large drop in school scores statewide. What about locally?

“We are thrilled that Gabriel Brothers has made the decision to invest in Springfield after seeing all that our community has to offer,” Mayor Warren Copeland previously stated. “With close to one million square feet and over 800 jobs at Prime Ohio II, this is a huge win for our community and continues the upward momentum that we have seen over the last several years.”

The Enterprise Zone Agreement will provide a 100% tax abatement for 15 years regarding the property at 1801-1830 Prime Parkway. That is where the proposed distribution center will be built.

The same agreement was approved by the Clark-Shawnee Local Board of Education in August and was awaiting approval from Springfield City Commissioners.

The passing of the ordinance related to the Enterprise Zone Agreement follows an announcement this month related to state incentives for the planned distribution center.

A release from the Ohio Department of Development in early October stated that Gabe’s is expected to create the equivalent of 833 full-time positions, generating $27.8 million in new annual payroll as a result of the company’s project in Springfield.

As a result, the Ohio Tax Credit Authority approved a 1.488%, 10-year job creation tax credit for the project, the release stated.

Another ordinance slated to be voted on by commissioners during their public meeting last Tuesday was related to an Employment Incentive Agreement with Gabe’s.

However, that was taken off the agenda and it’s unclear if commissioners will be voting on it later this month.

Explorehttps://www.springfieldnewssun.com/news/woman-missing-who-left-ohio-mason-home-with-small-dog-in-springfield/VFPSF2SJGZHNNBNMXBKH22TK7E/

The distribution facility was officially announced early in October. It will be located at the Prime Ohio II Industrial Park and the facility can be expanded to 1.3 million square feet depending on the needs of the company, according to the Community Improvement Corporation of Springfield and Clark County.

The announcement follows talks this year between NP Springfield Industrial LLC and the CIC, including the sale of 114 acres of land at the industrial park for $42,000 per acre for a total of approximately $4.7 million.

Construction of the distribution center is slated to start this month and the facility is expected to be fully operational by 2023.

About the Author

ajc.com