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BROOKVILLE, OH-Payless ShoeSource Inc., based in Topeka, KS is having a 600,000-sf distribution center constructed in the Northbrook Industrial Park. The Ohio Department of Development estimates the project will cost more than $25 million.
The St. Louis-based Clayco Inc. is constructing the building in the park, located at the intersection of Arlington Road and Interstate 70. Payless ShoeSource will use the center as its eastern distribution portal. Representatives from Payless ShoeSource and the Ohio Department of Development were not available for comment.
The center will be part of the company's dual distribution plan to reduce the time it takes for products to reach stores. The center will serve approximately 2,900 stores east of the Rocky Mountains, primarily in the US and Canada, according to a released statement from Payless ShoeSource. The chain operates 4,572 stores and a 400,000-sf distribution center in Redlands, CA.
Site work in Ohio began earlier this month. The distribution center is expected to open in summer 2008. Payless will lease the facility, but the terms were not disclosed.
The distribution center is expected to create about 300 new jobs in the first three operating years. Payless will receive a 45% job creation tax credit for an eight-year term, with an estimated value of $1.03 million, from the Ohio Tax Credit Authority, according to the press release.
The tax credits are given to businesses located in Ohio that, in part, are expected to contribute more than $25 million to the state's economy. Payless ShoeSource will be required to stay in Brookville for a period of 16 years as part of the tax credit, according the release.
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