CVS to Build 762 KSF Distribution Center in KC

The $110 million project is expected to create more than 360 new positions, as well as up to 100 additional jobs for outsourced local businesses in the area.

By Mihaela Coste

Skyport Industrial Park
Skyport Industrial Park, Kansas City

Kansas City, Mo.The Kansas City Area Development Council recently announced that CVS Pharmacy will expand in the Midwest by constructing a 762,000-square-foot distribution center at the Skyport Industrial Park in Kansas City. The company’s $110 million expansion is expected to create more than 360 new jobs in the region and up to 100 additional jobs for outsourced local businesses.

The new distribution center will be located on a 71-acre site at 108th St., in close proximity to the Kansas City International Airport and offering easy access to key road systems in the region. The construction will start in January 2017 and operations to support the service and fulfillment needs of more than 370 CVS Pharmacy stores throughout the Midwest are expected to begin in 2018.

The state will be helping the company in recruiting candidates for the new positions, which are expected to be filled starting in early 2018. Additionally, Kansas City approved the company for local personal property tax abatement.

According to Kansas City Business Journal, local incentives granted CVS a 90 percent real property tax exemption for 12 years, followed by a 50 percent exemption for 10 years. The chain also received a 10-year personal property tax exemption on equipment from the port authority.

“The key combination of a high-quality workforce and a centralized location will support the growing needs of our customers throughout the Midwest and beyond,” said Kevin Hourican, executive vice president of CVS Health, in a prepared statement. “As a result of our new Midwest distribution center, our delivery drivers will drive hundreds of thousands fewer miles each year to deliver product to our stores, significantly reducing carbon emissions and improving highway safety.”

“CVS Pharmacy’s decision to locate this regional distribution center in the Kansas City area affirms the transportation infrastructure advantages of this region and the competitive costs for distributing to the greater Midwest,” added Chris Gutierrez, president of KC SmartPort.

Image Courtesy of KC SmartPort