Hamilton Beach Brands is moving its large distribution facility and 125 jobs from Memphis to Olive Branch.
The company will lease 1.2 million square feet, a deal that landlord ProLogis on Thursday called largest lease signed in the U.S. this year.
Some may also describe it as yet another Mississippi raid on Memphis jobs.
McKesson Corp. announced in May that $4.5 million in state and local funding lured its pharmaceutical distribution center and 300 jobs from Memphis to Olive Branch.
Pinnacle Airlines Corp. confirmed this month that it has been offered generous incentives to move its headquarters from Memphis to Olive Branch.
And today,30 Mississippi Gov. Haley Barbour will be in Olive Branch to make yet another “new economic development announcement.” This one doesn’t involve a move from Memphis, but a 350-job window-making operation coming from California, according to one Mississippi newspaper.
ProLogis is a global provider of distribution facilities.
Hamilton Beach designs, markets and distributes small electric household appliances as well as commercial products for restaurants, bars and hotels.
The company will occupy the space at ProLogis’ Olive Branch Distribution Center Building Two, located off Polk Lane. It was formerly a distribution center for Pottery Barn.
The new site is just a 10-mile drive southeast on U.S. 78 from Hamilton Beach’s current distribution center, 900,000 square feet at 5461 Davidson. The current location is just north of the state line in Shelby County.
Hamilton Beach expects to complete the move by June 2011.
The lease term is ending at the Memphis facility, so the company considered other options in the Memphis area, said spokesman Mary Beth Perreault. Hamilton Beach did not consider leaving the Memphis area.
The new lease in Olive Branch is a significant savings for Hamilton Beach, she said.
“We gained 300,000 more square feet, 120 additional doors, 120 additional trailer parking spaces,” Perreault said.
The number of employees will stay the same.
The Mississippi Development Authority and DeSoto County provided tax incentives to Hamilton Beach.
“We have worked closely with Hamilton Beach officials to provide assistance throughout this relocation process,” Gray Swoope, executive director of the MDA, said in a prepared statement. “Hamilton Beach’s move to Olive Branch will be an asset to the city, its surrounding communities and the state as a whole. Mississippi’s business climate continues to be a positive factor for new investment, and I am pleased to welcome Hamilton Beach to Mississippi.”
“We are thrilled to sign such a significant new lease with a well-respected customer in Memphis,” said Ryan George, vice president and market officer for ProLogis. “This is the largest lease signed in the United States in 2010, and Hamilton Beach’s decision to locate at Olive Branch Distribution Center underscores the popularity of this market as a distribution hub for companies with widespread, national distribution networks.”
Greg Salvers, senior vice president, global operations, for Hamilton Beach, said the decision to move to the more modern facility came after months of planning and negotiations.
“Hamilton Beach gains much-needed square footage, doors and trailer parking spaces by making the move to the Olive Branch Distribution Center,” he said in a prepared statement. “In addition, the significant amount of savings in operating expenses and the ability to retain the same management team and associates played a significant role in our decision to move.”
ProLogis was represented internally by Ryan George and Jacob Milligan, while Hamilton Beach was represented by both Mike Driscoll and Andy Cates at Colliers International.
— Tom Bailey Jr.: 529-2388
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