published on November 15, 2016 - 11:37 PM
Written by The Business Journal Staff
The Fresno City Council is set to vote Thursday on an incentive package to lure cosmetics retailer Ulta Beauty to build a fulfillment center in town that could create up to 1,200 jobs.

 

Ulta Beauty is considering three cities for its West Coast fulfillment center, with the Fresno site located at East and Central avenues just south of town, according to a city staff report.

The news has echoes of Nordstrom’s plan to build a new e-commerce fulfillment center in either Fresno or Visalia, though the retailer, Ulta Beauty, announced earlier this year that decision could be put off up until 2020. That project was expected to create up to 370 jobs.

The retailer would spend up to $110 million to build the 670,000 square-foot fulfillment center on 38 acres. The initial workforce would be about 642 full-time employees with up to 700 part-time employees at peak times of the year.

The company anticipates retail sales of up to $66 million in the first year at the Fresno site, with more e-commerce sales growth in the coming years, according to the report.

The tax incentive package would not exceed $18 million over a 30-year term, and would be based on the number of jobs created there. Based off of councilmember Lee Brand’s Economic Expansion Act passed earlier this year, the city would rebate sales, use and property taxes over 30 years.

The incentive package would have a graduated scale based on employee hires — $15,000 per direct, full-time employee, $10,000 per full-time contract employee and $5,000 per contract, full-time equivalent position comprised of part-time contract positions.

Ulta Beauty currently operates three distribution facilities in Illinois, Arizona and Pennsylvania. This would be the Illinois company’s first facility in California.


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