Projects
GAIN Division
Industrial Warehouse
Engagement Overview:
FedEx Ground engaged a Bedford Consultant to negotiate the incentives and credits for the establishment of three large ($25,000,000+ each) distribution hub projects in Maryland, Texas and Georgia.
About The Client
The client specializes in cost-effective, small-package shipping, offering dependable business-to-business delivery or convenient residential services. The company has revenues in excess of $6 billion and more than 7,000 employees and independent contractors, delivering more than 3.5 million packages pser day through a fleet of 20,000 motorized vehicles.
Bedford GAIN Services
Bedford’s consultants gained a thorough understanding of the investment, jobs and payroll projections, along with the corporate culture of FedEx Ground. We contacted representatives from the State of Texas, Commonwealth of Pennsylvania, State of Maryland, State of Georgia, as well as local economic development organizations in a number of potentially viable locations. A competitive process was set up with state and local organizations vying for the new jobs FedEx was promising to create.
Estimate of Benefits & Savings:
Bedford consultants were successful in negotiating a number of grants, tax credits, real and personal property tax abatements and fee waivers to create almost $21 million in savings for FedEx Ground. Among the benefits were:
- Maryland Community Development Block Grant of $1.2 million
- Hagerstown, Maryland matching grant of $200,000
- Maryland Job Tax Credits of $119,500
- Maryland Workforce Grant of $370,000
- Texas Enterprise Zone sales tax rebates of $177,500
- Texas Highway Infrastructure improvement grant of $1.3 million
- Hutchins, Texas infrastructure grant of $200,000
- City real and personal property tax abatement of $4,260,055
- County real and personal property tax abatement of $3,808,250
- eorgia Job Tax Credit of $793,750
- Georgia Job Training Credits of $48,000
- Cobb County property tax abatement of $4,725,692
- Construction materials sale tax savings of $1,871,100
- MHE tax exemption of $1,702,701
- Fee waivers of $178,500
Actual Client Savings:
Total tax credit and direct financial benefits to FedEx Ground: $20,955,048