A convenience store chain announced Thursday it is planning to build a $51.3 million warehouse, logistics and distribution center on a 40-acre tract near the Crossroads Distribution Park that will serve hundreds of its stores.
Casey’s Marketing Company, an affiliate of Casey’s General Store, plans to construct a 200,000-square-foot distribution center at 2715 S. Prosperity Road. The 40-acre site is adjacent to the junction of the Interstate 49 and Interstate 44 ramps in Joplin, north of 32nd Street and west of Prigmore Avenue.
Casey’s said the deal is contingent upon obtaining more than $2.8 million in tax incentives from the state’s Department of Economic Development and the city of Joplin. The Joplin City Council is scheduled to consider the proposal at its meeting Monday night. A Casey’s spokesman also said the deal is pending the completion of the company’s due diligence.
“Joplin is an ideal location for Casey’s third distribution center due to its geography and ability to serve our growing market areas,” said Ed Vaske, vice president of transportation and distribution for Casey’s in a statement. “We appreciate the state of Missouri and city of Joplin and look forward to sharing more details in the future.”
The company, based in Ankeny, Iowa, said the proposed Joplin operation would serve as a hub to supply 400 to 600 stores.
Casey’s currently has approximately 570 stores across Missouri, Oklahoma, Kansas and Arkansas, including 10 in Joplin. “This new facility will play a key role in supporting this region and add capacity as we continue to grow,” said Kathryn Petru, company spokeswoman.
“Casey’s is an outstanding company, and we are excited it is expanding in our state,” said Gov. Mike Parson. “This new facility will not only provide quality jobs for Missourians in the Joplin region but also support existing locations across our state and the Midwest. We are proud to see companies continuing to choose Missouri for our strong central location, skilled workforce and business-friendly climate,” the governor said in a statement.
Mayor Gary Shaw said that if the council approves the deal, “I think it’s a great opportunity for us to bring to Joplin. This is a major company. They have two distribution centers in place, and they’ve chosen us to be the third. Not only does it bring another 100 jobs, but part of the agreement is they will do everything they can to use local contractors and materials, so this is good for our community.”
The council will give first-round consideration Monday to a request to provide Chapter 100 bonds to the company for the tax abatement.
The proposed distribution center would cost an estimated $40.9 million, including land, and would be fitted with $10.4 million in equipment and furnishings.
According to city documents, the building would receive a 12-year tax abatement starting when the Chapter 100 bonds are issued and continuing through 2033. The value of that assistance is calculated by the city to be $1,523,187.
An abatement would not be provided for the land, and the company would make a payment in lieu of taxes on the land of $915 next year. The payment would increase 2% each odd year until 2033 when it reaches $1,051, according to the city documents.
Equipment for the building would be abated for five years after it is installed on a rolling basis. That means that the abatement begins the year the equipment is installed for five subsequent years if it is not all installed the first year. The value of that abatement is $377,116.
In addition, the state has been asked to approve tax exemptions for the purchase of construction materials. Because those have not been purchased, the value of that abatement cannot yet be determined.
As a result of the assistance, the company will be expected to provide 100 jobs at the distribution center with an average annual wage of $39,816 and medical coverage, half paid by the company.
Petru said there are no plans yet for hiring.
“Right now, we are focused on getting the land purchased and finalizing any incentives. We will share a more detailed timeline once that stage is complete and we are closer to breaking ground,” she said “We will be excited to share job opportunities once we’re farther along and those will post on www.caseys.com/careers.”