Home Goods Distribution Center

Tucson a Finalist for $80M

Tucson is a finalist to become the site of HomeGoods’ new $80 million West Coast distribution center.

If selected, the project would initially create about 400 new jobs, and almost 900 in the next 15 years.

HomeGoods is a home accessories store and a division of TJX Companies Inc., along with Marshall’s and T.J. Maxx.

The details were released Friday in agendas for the Pima County Board of Supervisors meeting on Tuesday, during which incentive packages will be discussed.

“This has been in the works for about a year now, ” said Tucson Regional Economic Opportunities president and CEO Joe Snell.

“This project would be a really significant infusion of capital into the community, ” Snell said.

TREO has estimated the project’s total economic impact at $873 million.

“HomeGoods is pleased to confirm that we recently signed Purchase and Sale Agreements for the potential purchase of approximately 100 acres of land, ” said TJX spokesperson Doreen Thompson in an email.

“We are optimistic that we may build an approximately 800, 000-square-foot distribution center on the site … pending completion of due diligence and receipt of appropriate approvals.”

The property is on East Corona Road at Alvernon Way, close to Tucson International Airport.

Aside from Tucson, HomeGoods is considering sites in New Mexico, California and Nevada to build the new warehouse, which will serve as the distribution center to all HomeGoods stores west of Denver.

“The rail line works in our favor, ” Snell said. “But the available workforce here is the top driver.”

Snell said that the wages would vary between entry-level and top management positions.

The Board of Supervisors will vote Tuesday on tax incentives. County officials propose to designate the property as a Foreign Trade Zone. That would reduce the property tax from 19 percent to 5 percent for a total of 15 years.

In exchange for the tax break, HomeGoods would provide all employees with health and dental insurance and a 401(k) retirement savings plan. The terms would require HomeGoods to pay 66 percent of health insurance premiums, 50 percent of dental premiums and at least a 25 percent match of 401(k) contributions.

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