Luxury retailer Neiman Marcus will open a distribution center in CenterPoint Commerce and Trade Park East in Jenkins Twp., creating more than 150 jobs, Gov. Tom Corbett announced Monday.
The Neiman Marcus Group has leased a 198,400-square-foot building at 400-450 CenterPoint Boulevard from Mericle Commercial Real Estate Services for 10 years to accommodate all its East Coast operations.
"This was a competitive project that could have located in another state if not for our pro-business climate and economic development efforts," Mr. Corbett said in a statement.
The company received an $895,950 funding offer from the Department of Community and Economic Development, including a $375,000 Pennsylvania First grant, which encourages Pennsylvania businesses to compete with other states; $67,950 in job training assistance and $453,000 in job creation tax credits, according to a press release from Mr. Corbett.
Steven Kratz, spokesman for DCED, said the Pennsylvania First grant funds can be used to buy machinery and improve the land and building. The job tax credits will be disbursed annually based on the number of jobs created over three years, Mr. Kratz said.
Jobs will include management, distribution and operations positions, he said. He could not say how much the jobs will pay, and a spokesman for Neiman Marcus could not be reached for immediate comment.
Neiman Marcus will invest more than $12 million for improvements, equipment and employee training. The retailer was using a distribution center in New Jersey and Pennsylvania was in competition with West Virginia for the project, Mr. Kratz said.
"The incentives were key to bringing 151 jobs to Luzerne County as opposed to the center of West Virginia," Mr. Kratz said.
Jim Skinner, executive vice president, chief operating officer and chief financial officer for Neiman Marcus, said in a statement that the retailer decided to open a new East Coast distribution center in Jenkins Township after a "long and thorough study of our future supply chain needs."
"The new facility is strategically located to allow us to better serve our customers and stores in the Northeast," Mr. Skinner said. "After successfully operating stores in Pennsylvania for over 15 years, we look forward to expanding our presence in the state."
Mericle constructed the building on speculation, without a firm purchase commitment. Neiman Marcus will be the 31st company in CenterPoint and its 150 new jobs will push total employment in the park to about 3,200, according to Jim Cummings, spokesman for Mericle.
Mericle crews are customizing the space to Neiman Marcus' needs, said Mericle Vice President Jim Hilsher, who coordinated the real estate transaction with Joe McDermott from CB Richard Ellis Real Estate of Wayne. Mr. Hilsher said work should be complete in the fall and the company should begin operations by the end of the year.
"We are pleased to have Neiman Marcus, one of the world's premier retailers, in CenterPoint," Mr. Hilsher said. "The company looked at many buildings in several states for this distribution operation. We are glad we were able to provide them with a great fit in CenterPoint."
CenterPoint now consists of 20 buildings totaling 5.5 million square feet. Neiman Marcus joins several major retailers with distribution facilities in CenterPoint, including J.P Boden, Men's Wearhouse, Lowe's and the Home Depot.
Six multi-tenant buildings still have space available in CenterPoint ranging from 8,000 square feet to 50,000 square feet. Another multi-tenant building is being constructed now and construction will begin on a 200,000-square-foot building in the fall, Mr. Hilsher said.
