Georgia Offers $10 Million Incentives Package That May Go to Online Wardrobe Outfit
The state of Georgia and Douglas County have assembled an incentives package valued at nearly $10 million for a new distribution center for a company matching the description of online styling service Stitch Fix that the county says would create almost 1,000 jobs.
Georgia is prepared to offer the unidentified firm described as an "online styling service" $8.6 million in state job tax credits and a $981,000 Regional Economic Business Assistance grant to the company that would create 981 new jobs at a warehouse facility at 801 Factory Shoals Road in Douglas County.
Last month, CoStar News reported that Stitch Fix signed a lease for the entire 925,800-square-foot distribution center being developed by Prologis at 801 Factory Shoals Roadin the Lithia Springs area of Douglas County, about 15 miles west of Atlanta.
The unnamed company that would receive the incentives has more than 2.7 million customers and 6,600 employees and works with 1,000 brands including eight of its own, numbers that align with information Stitch Fix has on its website and in filings made with the U.S. Securities and Exchange Commission. In addition, in the past week Stitch Fix has posted several job openings for a new Atlanta-area warehouse.
The unnamed company does not have any warehouse operations in the Southeast and attributes some of the growth to a new kid's line offering. San Francisco-based Stitch Fix launched Stitch Fix Kids a year ago.
"Douglas County became a great choice because to date they have no presence in the Southeast, U.S. [and] their expansion allows them to better serve their clients in the region, while also helping them optimize their distribution network and lower transportation costs," the county stated in a project description prepared for the board of commissioners.
Stitch Fix did not immediately return requests for comment. Industrial real estate investment trust Prologis did not respond to requests for additional information about the Stitch Fix lease at 801 Factory Shoals Road.
The Atlanta metropolitan area competed with Charlotte, North Carolina, for the new distribution facility, according to an agenda for the July 8th County Commission work session posted online by the Douglas County Clerk's Office.
The unnamed company would invest $56 million in a distribution center in Douglas County that will create the jobs that pay an average of $15.82 an hour, according to a fact sheet from the Douglas County Economic Development Authority. In the fact sheet, the authority uses the code name "Project Southern Charm" for the economic development effort, according to county documents.
The Economic Development Authority approved an inducement resolution July 1 for Project Southern Charm, Chairman Ron Wilson said. He declined to name the company the resolution would benefit.
The authority recommended to the Douglas County Board of Commissioners that it approve the resolution to allow the company and landlord Prologis to participate in the county tax savings plan that would abate some of the properties taxes paid by the building owner. The board of commissioners is expected to discuss the resolution at a work session July 8 and could vote on it as early as the full commission meeting July 9.
The unnamed company at the center of Project Southern Charm also would receive $140,000 in state and local sales and uses taxes, according to the fact sheet.
As for the REBA grant, Georgia uses that financial incentive to help "close the deal" when it is competing with other states or countries to land a company relocation or expansion, according to the Georgia Department of Community Affairs.
Stitch Fix has leased other distribution facilities from Prologis, including a 483,990-square-foot center in Lower Nazareth Township, Pennsylvania, its first distribution center in the Northeast. The company has been expanding its logistics operation as its business grows. In February, Stitch Fix increased the size of its Dallas fulfillment centerby 174,000 square feet to 490,000 square feet, according to a filing with the U.S. Securities and Exchange Commission. The company also extended its lease at the building by 18 months to June 2024.