The existing DHL facility in Whiteland at 45 Mission Dr. Submitted photo by LoopNet
A logistics company in Whiteland is investing more $16 million and adding 60 new jobs with the help of a tax break.
The Whiteland Town Council approved a 10-year real property tax abatement for Exel Inc. DBA DHL Supply Chain (USA) on Tuesday to support the development of its new distribution center. The $16.2 million investment will fund a 167,000-square-foot new facility that will be built next to its existing building at 45 Mission Dr. for a leading life science customer, according to the application.
The company plans to invest $14.2 million in the new building and purchase $2 million in machinery/equipment. The company also plans to employ 60 local workers with an average salary of $47,392.
DHL is a contract logistics provider and offers expertise within the automotive, consumer, chemicals, energy, engineering and manufacturing, life sciences and healthcare, retail and technology sectors. It is a wholly-owned entity of Deutsche Post DHL. The company has numerous logistics warehouses around Johnson County in the Interstate 65 corridor and at least three locations in Whiteland alone.
“Exel Inc. DBA DHL Supply Chain (USA) has a long and mutually beneficial association with Whiteland and Johnson County,” Karmin McWilliams, senior manager of tax credits and incentives, said in the application. “We also look forward to extending our presence in the area and community.”
The estimated total cost of the proposed project is approximately $14.2 million and the assessed value is approximately $11.4 million. The amount of taxes abated for DHL will be approximately $1.6 million over the 10 years. With the abatement, the company will still pay approximately $1.8 million in taxes, according to the application.
“Tax incentives are vital to DHL’s decision to locate in different localities and are part of our site selection process. The tax abatement that was awarded to 45 Mission Dr. was a critical aspect of DHL’s decision to locate and expand in Whiteland,” McWilliams said in the application. “If Whiteland Council approves the requested real property tax abatement for this project on lot six, it would maximize the use of the land and allow DHL to continue to expand in the region, bringing additional jobs and investment to the town.”
Without the abatement, the company would’ve paid approximately $3.4 million in taxes over the 10-year period, including projected annual real estate and personal property taxes.
The company expects to begin construction on the new facility by spring 2025 and have it completed by spring 2026.
