April 2, 2012

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Southern Utah to Become Home to New Family Dollar Distribution Center

Press Release

April 2, 2012

The Governor’s Office of Economic Development (GOED) and Family Dollar Stores, Inc. (NYSE:FDO) announced that it will locate a new distribution facility in the Washington County area of southern Utah.

The Fortune 300 retailer plans to invest approximately $80 million to build an 800,000 square foot, highly automated distribution center aimed at serving its western stores. Family Dollar plans to break ground on the new facility — its 11th such center nationally — this summer and plans to begin operations in the summer of 2013.

“Utah has long been known as the Crossroads of the West and Family Dollar’s decision to expand in southern Utah further enhances the State’s reputation as a premier logistics and distribution center,” said Gov. Gary R. Herbert. “Utah welcomes Family Dollar's new facility — and the hundreds of jobs it will create — as it joins numerous leaders in manufacturing and distribution that call southern Utah home.”  

The company will over the 20 year life of its agreement with the state, hire approximately 450 new full-time employees, however, Family Dollar expects to hire close to 350 of the employees within the first few years after their facility is built. The new jobs will all include full health and retirement benefits. The company expects to begin hiring team members for its distribution operations in spring of 2013 in preparation for the opening of its new facility.   

“Being a compelling place to work is more than just providing jobs.  It’s also about becoming part of the local community,” said Howard Levine, Family Dollar chairman and CEO. “We’re looking forward to getting to know our new neighbors in St. George and the state of Utah and becoming an active member of the community for many years to come.”

“We are delighted to have Family Dollar decide that St. George will be the location of the company’s newest distribution center. Taking advantage of our productive workforce, hundreds of construction workers will build a valuable addition to Ft. Pierce Industrial Park that will make possible the several hundred new permanent positions,” said St. George Mayor Daniel McArthur. “We join with all of the citizens of St. George and the surrounding cities in welcoming Family Dollar to Utah’s Dixie!”   

The GOED Board voted to approve a post-performance EDTIF incentive in which the Family Dollar could earn up to $3,764,578 million in post-performance tax credits during the 20 year life of the agreement.

“The Family Dollar expansion in southern Utah once again demonstrates the power of collaboration, in which Utah economic development partners excel. The willingness of the local partners is what made this project possible,” said Spencer Eccles, GOED executive director. “Utah continues to lead the nation in job growth and quality of life and we are very pleased Family Dollar will be contributing to our vibrant business community in southern Utah.”

“Family Dollar’s decision to locate its distribution facility in St. George and employ 350 people shows the hard work of our economic development partners in Southern Utah,” said Jeff Edwards, President and CEO of Economic Development Corporation of Utah (EDCUtah) who partnered with the GOED to bring this project to fruition.”

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