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FedEx to build $20 million distribution center in Colorado Springs

December 3, 2014 Updated: December 3, 2014 at 4:17 am
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FedEx Corp., which already has a major presence in Colorado Springs with data and software development centers, plans to construct a $20 million, 225,200-square-foot distribution facility southwest of Powers Boulevard and Platte Avenue.

The distribution center for FedEx Ground will be built on a vacant, 
27.4-acre site bounded roughly by Powers, Bijou Street, Troy Hill Road and Pikes Peak Avenue, according to plans submitted to the city's Land Use Review Division office by a consultant representing FedEx's general contractor.

Mike Schultz, a senior planner with the division, said Tuesday that the city expects to approve the project by year's end to allow construction to begin in January or February. FedEx had considered a site southeast of Fountain and Powers boulevards for the center, but that site turned out to be too small, he said.

Nikki Mendicino, communications coordinator for FedEx Ground in Pittsburgh, declined Tuesday to comment, saying in an email message that "As a matter of policy, FedEx does not publicly discuss specifics of a project until all the details have been finalized."

But the plans submitted with the city provide a glimpse at the scope. They show enough parking for 455 passenger vehicles, 106 trailers, 11 tractors and 55 heavy-duty delivery vans, and loading bays for 
52 tractor-trailer trucks.

Bob Cope, the city's senior business climate specialist, said FedEx is not receiving any financial incentives for the project and added that the city "is grateful for the investment in our community." His office began working with FedEx in September.

Mike Helwege, of Cushman & Wakefield/Colorado Springs Commercial, said FedEx is scheduled to complete its purchase in January from ICA Properties, owned by Hotel Eleganté Conference & Event Center owner John Bushman of Odessa, Texas. ICA bought 32.56 acres southwest of Powers and Platte for $700,000 nearly two years ago from Great Southern Bank of Overland Park, Kan., which had foreclosed on a $4.26 million loan in 2010.

Besides its data center and software development operation in the Northgate business park, FedEx also has shipping terminals in northwest Colorado Springs and near Colorado Springs Airport, a hangar at the airport and five Print & Ship storefronts locally.

The company announced plans in October to spent 
$1.2 billion next year on more than 70 major expansion projects in the U.S. for FedEx Ground, mostly for capacity and automation. The company has spent nearly $2.5 billion in the past five years on 250 expansion projects, including new facilities, relocations and expansions.

FedEx Ground has about 65,000 employees to handle more than 4.5 million packages a day in the U.S. and Canada. It operates 33 ground hubs and 27 FedEx SmartPost distribution centers.

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Rich Laden contributed to this report.

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