FedEx eyes distribution site near Enterprise South, I-75

A worker scans packages at the FedEx Express station in Nashville.
A worker scans packages at the FedEx Express station in Nashville.

FedEx and a developer have identified an 80-acre site near Enterprise South industrial park as the location for a proposed new Chattanooga distribution center.

The FedEx Ground facility is eyed for a vacant tract at Interstate 75 and Apison Pike, according to documents submitted to the state Department of Environment and Conservation.

The rectangular-shaped parcel that runs between the interstate and a nearby rail line was chosen due to its proximity to I-75, Chattanooga Metropolitan Airport and its central location in the area, documents said.

James Saad of Mobile, Ala.-based Saad Development Corp. said Thursday the project is moving forward, though he declined further comment. If it gains needed environmental and other approvals, work on the distribution center could start early next year with documents showing a completion date in 2017.

FedEx spokesman Jesse Bull said the Memphis-based parcel delivery giant continuously evaluates the need for additional facilities.

He wouldn't say how many employees the center may hold or how big it will be, adding that FedEx doesn't comment until details are finalized.

However, a drawing of the FedEx Ground facility shows the distribution center taking up the center of the tract with parking around the site.

"There is a high demand for ground shipping in Chattanooga and adjacent areas, therefore a distribution facility is necessary for providing customers with the required supply that meets demand," the document said.

Charles Wood, the Chattanooga Area Chamber of Commerce's vice president of economic development, said the business group is working to bring the project to fruition.

He said Chamber officials "expect and hope for significant growth in the area."

photo A worker scans packages at the FedEx Express station in Nashville.

The site, called "The Crossings," is directly across from Enterprise South, the massive industrial park that holds the Volkswagen auto assembly plant and Amazon's large distribution center. Apison Pike becomes Volkswagen Drive when it crosses I-75.

A tract within Enterprise South was considered for the proposed FedEx facility, according to documents. That location off Hickory Valley Road was considered too small and much of it is wetlands.

Another alternative considered and dismissed was on Old Lee Highway two miles from I-75 in Ooltewah, but there were environmental and utility service concerns.

The I-75/Apison Pike location is considered "the only social and economically feasible alternative that would execute the development of the project," documents said.

The developer is seeking an Aquatic Resource Alteration Permit from TDEC because 240 feet of an existing stream will be permanently modified through the placement of fill. Also, about 426 linear feet of wet weather conveyance also will be impacted, according to documents.

Apison Pike is undergoing a $22.5 million widening to Ooltewah-Ringgold Road that's seen as key for McKee Foods Corp. and easing Collegedale area traffic tie-ups.

FedEx Ground has a distribution facility in Chattanooga that it built in 2008 off Alton Park Boulevard. That $15 million, 163,000-square-foot facility is located on a former Wheland Foundry site.

FedEx also has a location at the Chattanooga airport, where Lovell Field officials spent $2.3 million to expand a cargo ramp on the south end of its main runway to accommodate the shipping giant. FedEx went from servicing the airport with two smaller planes to a Boeing 727.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.

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