New $110M CVS distribution facility, 360 jobs officially announced

A Kansas City economic development coup announced by the Kansas City Business Journal a month ago was officially announced on Wednesday by the Kansas City Area Development Council.

In a release, the KCADC confirmed that CVS Pharmacy, the nation’s leading retail pharmacy chain, will build a 762,000-square-foot distribution center at the Skyport Industrial Park near the Kansas City International Airport. The new facility is expected to create more than 360 new jobs, as well as up to 100 additional jobs that will be outsourced to local businesses.

CVS Pharmacy is scheduled to break ground in January on the 71-acre project site, which is located at 108th Street and North Congress Avenue near Interstate 29.

Local incentives were approved for the $110 million project by Port KC, which granted CVS a 90 percent real property tax exemption for 12 years, followed by a 50 percent exemption for 10 years. CVS also received a 10-year personal property tax exemption on equipment from the port authority.

Amy Susan, a spokeswoman for the Missouri Department of Economic Development, said no state incentives were granted for the CVS project, which was referred to by the code name “Project Toto” prior to Kansas City winning the competition for the facility.

But Susan said that MDED will be helping CVS with workforce recruitment.

“The key combination of a high-quality workforce and a centralized location will support the growing needs of our customers throughout the Midwest and beyond,” Kevin Hourican, an executive vice president with CVS Health, said in the release. “As a result of our new Midwest distribution center, our delivery drivers will drive hundreds of thousands fewer miles each year to deliver product to our stores, significantly reducing carbon emissions and improving highway safety.”

The new distribution center, expected to begin operations in 2018, will support the service and fulfillment needs of more than 370 CVS Pharmacy stores throughout the Midwest.

“Kansas City continues to be recognized as a signature location for regional and national distribution due to our central location and quality workforce,” KCADC CEO Tim Cowden said in the release. “We are thrilled that CVS Pharmacy has chosen the KC region for its new Midwest distribution center and look forward to its success.”

KCADC worked with the following partners in attracting CVS Pharmacy to the KC region: the state of Missouri, The Missouri Partnership, the Economic Development Corp. of Kansas City, the Platte County Economic Development Council, KCP&L, Cushman & Wakefield, NorthPoint Development, Metropolitan Community College, Focus Workforces, IMKO Workforce Solutions, QPS Employment Group, Full Employment Council, Missouri Division of Workforce Development, UPS, Scarbrough International, Ltd., Port KC and KC SmartPort.

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