New McLane Co. Distribution Center to Open in 2016

Distributor seals tax deal on $38-million, 337,831-square-foot facility

McLane Company

FINDLAY, Ohio. -- McLane Co. is on track to open its newest grocery distribution center in 2016. The $38-million distribution center is being built in northern Findlay, Ohio.

This week, the convenience-store distributor approved a deal that will help it will avoid more than $750,000 in sales taxes. The Temple, Texas-based company will temporarily ceding ownership of the construction site to the Blanchard Valley Port Authority, according to an Associated Press report. Government bodies like the port authority do not pay sales tax. So sales tax will not be levied on construction materials for McLane’s 337,831-square-foot distribution center.

The McLane distribution center, to supply convenience stores, mass merchants, drugstores and restaurants, will eventually employ 425 people and will pay an average wage of $57,000 per year plus benefits, according to the report.

If McLane was the property owner during construction, it would pay more than $750,000 in sales taxes, Jerry Arkebauer, consultant to the port authority, told AP. McLane will pay for construction of the building. Then it will lease it for at least five years before buying it for $5,000 under a deal approved Tuesday by the port authority board. The entire investment in the property is expected to total $119 million, according to earlier reports.

The new facility will be McLane’s 22nd grocery distribution center across the United States. Construction is expected to begin soon on the building.