Two big building projects in Lenexa and Edgerton are getting underway this month that will greatly increase the footprint of UPS in Johnson County.
The company has begun construction on an expansion of its Lenexa facility at 14650 Santa Fe Trail Drive that will double the size of the current facility. The project will add 200,000 square feet to the current 226,000-square-foot building. Space outside will be added for more trailer staging and employee parking as well.
The Lenexa expansion focuses on modernized equipment and additional bays for loading that will improve efficiency and increase processing capacity by 42 percent, company officials said. The Lenexa project is expected to be done in 2020.
This fall, UPS will break ground on a 197,000-square-foot customer center in Edgerton that should be finished in time for the holidays, officials said.
The two projects will cost about $220 million and together will add 100 jobs to the area in the next five years. Job recruitment will begin in July through the company’s web site at https://www.jobs-ups.com.
“Kansas is at the center of the reliable UPS network to keep packages rapidly moving in all directions across the country,” Fern Shaw, president of UPS’s Central Plains District, said in a news release.
The company received tax incentives through the state from the Promoting Employment Across Kansas, a program that allows qualifying companies to retain up to 95 percent of payroll withholding tax of employees that pay at or above the county median wage. To get the incentive, employers must create at least 10 jobs in metropolitan counties like Johnson County.
UPS also got a tax incentive from Lenexa in the form of industrial revenue bonds and a 10-year, 55 percent tax abatement. The $78.5 million in bonds are to be repaid by the company, without any obligation from the city.