Friday, June 14, 2024

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Site for Chick-fil-A distribution center annexed into Mebane

Mebane’s city council has agreed to the annexation of 79 acres in the industrial park off South Third Street (North Carolina Industrial Center) where Chick-fil-A has a $52 million distribution center under construction. The Chick-fil-A site is at the end of Park Center Drive within the industrial park.

An architectural rendering of the proposed Chick-fil-A distribution center now under construction in Mebane.

The 182,625-square-foot facility will employ 160 people at average salaries around $63,000.

Construction on the building is well underway, and Chick-fil-A officials previously told The Alamance News that they hope to be operational in the new facility during the first or second quarter of 2022.

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David Fader, the senior director for corporate financial services at Chick-fil-A, told Alamance County’s commissioners last November that, with some 2,600 locations in 47 states, Chick-fil-A is in desperate need of a new distribution center to augment one that it recently set up in its home state of Georgia.

Fader noted that the chain had traditionally relied on third-party distribution centers, but has increasingly found it necessary to set up its own warehouses due to its runaway growth.  The Mebane site is its second.

“We are the fastest-growing chicken restaurant at the moment,” he told the commissioners. “That’s putting constraints on our distribution network,” Fader said at the time.

Both Mebane and Alamance County government, as well as the state, contributed economic incentives to lure the company to set up its distribution center in Alamance County.

Alamance County commissioners agreed in November to pay out $390,000 in five annual installments of $78,000 apiece. These grants are comparable to a series of payments that Mebane’s city council also authorized in November, although the council had also agreed to sweeten the pot by waiving another $150,000 or so in planning and inspection fees, for a total, cumulative local incentives package of $930,000.

The state added its incentives grant for the Chick-fil-A project in December, prior to the governor’s announcement that the company had chosen the North Carolina site over others in contention.

Over the course of the 12-year term of a Job Development Investment Grant (JDIG), the project is estimated to grow the state’s economy by nearly $389 million, according to the state’s commerce department. Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $1,562,400, spread over 12 years.

This is the location of the Chick-fil-A distribution center, which has now been annexed into Mebane: 78.85 acres at the end of Park Center Drive in the North Carolina Industrial Center off South Third Street in Mebane.

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