By Faughn Distribution 0 Comments

Tejon Ranch Co. Congratulates Nestlé

Tejon Ranch Co. congratulates Nestlé on the completion of their new 700,000+ sq. ft. distribution center at Tejon Ranch Commerce Center. Strategically positioned to enhance distribution efficiency across the West Coast, this state-of-the-art facility reflects Nestlé’s commitment to operational excellence and growth.

The decision by the world’s largest food and beverage company to establish operations at TRCC reinforces the center’s reputation as a premier logistics and industrial hub in California. With more than 8 million sq. ft. of space absorbed to date and additional sites available for development, TRCC continues to drive regional economic growth and long-term business value.

https://www.linkedin.com/posts/tejon-ranch_tejon-ranch-co-congratulates-nestl%C3%A9-on-the-activity-7362174993562046467-LR2A/?utm_source=share&utm_medium=member_desktop&rcm=ACoAADYwsM0BdKAiN5Go6lbktPnvGXMSxQCxGTk

By Faughn Distribution 0 Comments

Farm manufacturer announces Visalia expansion with new distribution center

A publicly traded manufacturer and distributor of farm equipment is expanding its Visalia parts distribution operation. Georgia-based AGCO announced a multimillion-dollar investment in its U.S. West Coast operations with a new, expanded parts distribution center. The new, 115,000 square-foot facility is located less than three miles from the current site at 9860 W. Ferguson Ave., according to a news release. The company relocated its parts and distribution center to Visalia from Stockton in 2016.

The new site at 30041 Bradham Drive will replace the current location, with an anticipated start to operations in late 2026. About 20 people will work at the new site — the same as current operations. The modern facility will support distribution of all AGCO leading brands, including farm machinery maker Fendt, in the U.S., and provide enhanced service to Western U.S. farmers, including California’s growers, according to the release.

“California’s high-value crop farmers rely on precision equipment that runs long hours, often logging over 2,000 hours per year in demanding conditions,” said Jena Holtberg-Benge, AGCO vice president of aftersales and parts. “By expanding our parts distribution capabilities in Visalia, we’re putting Farmers First – ensuring rapid access to critical components that keep machines running and on track during peak seasons.”

Visalia’s central location enables AGCO to reach any dealer or farmer in the region within a day. The new facility will reduce lead times and improve fill rates for high-demand parts across AGCO’s full brand portfolio, according to the release.

https://thebusinessjournal.com/farm-manufacturer-announces-visalia-expansion-with-new-distribution-center/?mc_cid=1a6ebe12b9&mc_eid=bd857719cb

By Faughn Distribution • Workforce 0 Comments

Massive distribution center to create 1,500 jobs in Stanislaus County

Patterson is now considering a 3.25 million-square-foot distribution center, which is almost three times larger than a 1.2 million-square-foot warehouse on Sperry Avenue approved earlier this month. According to applications filed with the city, the huge distribution center at the southwest corner of Rogers and Zacharias roads would be “built to suit” for an e-commerce company to fulfill orders from customers. The company has not been identified. It would be the largest distribution center in the city, which has logistics facilities as large as 1.5 million square feet.

Simply called Project Zach, the center will have five floors and about 1,500 employees. A city use permit is required because the 107-foot height is twice the city standard of 45 feet. Other features include 59 loading docks, a proposed 983 parking spaces for passenger cars and 506 truck trailer stalls. Small products, less than 25 pounds, will be packaged on the ground floor and mezzanine and stored on the upper floors.

The project got a public hearing Thursday evening before the city Planning Commission. The panel was to review a number of issues because of Project Zach’s size and location near the foothills of western Stanislaus County. “The city’s primary concern with large buildings is the potential impacts on residences and views of the hills,” City spokesperson Victoria Castro said by email. “The municipal code includes requirements to ensure projects like this are located far from residences to protect the views.” Issues such as truck traffic and air quality are being addressed through conditions of approval for Project Zach, Castro said. A city report says the proposed facility is more than 2,000 feet from the nearest property inside the city zoned for residential development.

The 102-acre site is within the West Patterson Business Park Expansion planned for 13.5 million squares of feet of light industrial and commercial uses. The owner is NCP Patterson Holdings. A representative of Panattoni Development Co. did not return a message from The Modesto Bee. The city required an amendment to the 2012 environmental study on the business park expansion, but the adverse impacts of Project Zach are not more severe than impacts of the entire expansion, so there’s no need for major revisions, the addendum concluded. The city turned heads by landing distribution centers at a time when some California cities were desperate for any job creation. Patterson’s business park expansion, driven by Interstate 5 access, was capped by a 1 million-square-foot Amazon Fulfillment Center in 2014. But warehousing and distribution draw more complaints today regarding substandard wages, truck traffic and air emissions.

A city planning report says Project Zach is exempt from Assembly Bill 98, which was passed by the Legislature to restrict truck routes and impose more stringent requirements on logistics projects in California. Project Zach is part of the Arambel Business Park master plan, approved years ago. Initial standards of AB 98 went into effect Jan. 1. In 2012, the EIR found that the West Patterson Business Park expansion would eliminate 749 acres of prime farmland, 278 acres of unique farmland and 82 acres considered important by the state. The new distribution operation, including 652,000 square feet on each floor, is expected to exceed San Joaquin Air Pollution Control District emissions for volatile organic compounds and nitrogen oxides. The center will generate 400 vehicle trips during the busiest morning hours and more than 900 trips in the worst hours after noon.

State regulations will require a five-minute limit on idling diesel-powered vehicles at the facility. Before building permits are issued, Project Zach is expected to comply with San Joaquin Valley Air Pollution Control District rules to reduce nitrogen oxides emissions by 33% and tiny particle emissions from diesel trucks by 50%. That can be done through onsite emission reductions or payment of mitigation fees. The environmental study on the entire West Patterson Business Park expansion anticipates 11,755 vehicle trips during morning hours and 15,319 after noon. Project Zach is expected to fund its share of road and intersection improvements before a final map is approved. As the business park continues to develop, the plan has called for improvements of the I-5 and Sperry Avenue interchange, signals where Rogers Road meets Highway 33, and other intersection improvements.

In addition, Project Zach will contribute fair-share fees for an I-5 and Zacharias Road interchange connected to the proposed South County Corridor expressway. The Planning Commission’s approval June 12 of a 1.2 million-square-foot logistics center on Sperry Avenue sparked some jeers on social media bemoaning another warehouse and that this one would eliminate a corn maze popular with families. Castro said the city is seeking diverse development and is reviewing multiple applications including nearly 2,000 housing units and commercial projects such as a new shopping center. It’s reviewing proposals for additional industrial buildings including manufacturing and medical facilities, she said.

Patterson part of primary logistics market an economic development whitepaper for the Modesto 2050 General Plan Update and EIR in 2022 analyzed the rapid expansion of the logistics industry in the Northern San Joaquin Valley. There was steady growth in e-commerce before the pandemic and then the COVID-19 lockdowns in 2020 spurred enormous global growth in online sales. San Joaquin County is a major hub for warehousing and distribution due to truck and rail transportation modes, relatively inexpensive land, labor supply and freeways like Interstates 580 and 205 connecting with the Bay Area and Port of Oakland, the whitepaper said. Tracy is a leader with regional warehouse and distribution businesses in a primary market taking in Lathrop, Manteca, Stockton and Patterson. The report noted that Patterson and Stockton are equal distance from the Port of Oakland. Although Patterson has a smaller labor supply, it has the least expensive land and fee costs, the whitepaper said.

Modesto lies southeast of the primary market area and is at a disadvantage for logistics development, with the greater mileage increasing costs for operators, the paper said. The city inhabits a secondary market with opportunities, but with supervisors earning around $25 an hour and robotics taking on much of the warehouse work, the 2022 paper said some communities question the desirability of logistics development.

https://www.modbee.com/news/politics-government/article309423915.html?utm_source=chatgpt.com

By Faughn Distribution • Economy • Renewable Energy 0 Comments

Port of Stockton gets $110 million grant for zero-emissions operations

The Port of Stockton has been awarded a $110.5 million grant to reduce air pollution in what a local congressman called the largest federal investment in its history. U.S. Rep. Josh Harder (D-Tracy) said the funds will help make Stockton the first small port in the nation with zero-emissions terminal operations.

The grant is intended to be used for electric cargo handling equipment, solar power generation and battery storage and to provide shore power to ships when they tie up at wharfs, the U.S. Environmental Protection Agency said Tuesday. The grant also will go toward training workers in maintaining the new high-tech equipment.

“These funds will significantly decrease freight-related emissions in the Central Valley by transitioning more than 90% of our cargo-handling equipment to zero emissions,” Stockton Port Director Kirk DeJesus said in a statement.

The grant will help burnish the Port of Stockton’s environmental efforts, which sometimes draw the ire of conservationists. In September, for instance, several environmental groups sued the port alleging a planned project to produce hydrogen from fossil methane will create air pollution and greenhouse gases that lead to climate change.

Despite environmental concerns, the Port of Stockton, however, is a regional economic powerhouse. As the fourth busiest port in the state, the complex accounts for more than 10,000 jobs, officials say. Stockton’s grant is among 55 to be distributed at ports around the nation. The investments, totaling nearly $3 billion, were funded under the Biden administration’s Inflation Reduction Act.

Harder said he worked hard to bring the grant to Stockton.

“This means jobs, cutting-edge technology and better air quality for our kids,” said Harder, a Stockton-based Democrat and member of the House Appropriations Committee.

Other California ports receiving grants included Redwood City, Oakland, San Francisco, Oxnard, Los Angeles and San Diego. One goal for the grants is to help reduce pollution at ports that have homes nearby, which is certainly the case in Stockton. Several neighborhoods are situated on the north side of the San Joaquin River across from Rough and Ready Island, home to the Port of Stockton.

“While ports, of course, serve an essential role for moving goods, the costs that they bring in terms of pollution and impacts on overburdened communities must be confronted,” EPA Pacific Southwest Regional Administrator Martha Guzman said in a statement.

Replacing diesel-powered freight equipment with zero-emission technology will “reduce air pollution, improve health outcomes in nearby communities, and advance the campaign to tackle climate change,” Guzman said.

By Faughn Distribution • Manufacturing 0 Comments

Visalia tills crops into industrial plants

Dairyman Jay teVelde, Jr. is the latest north Visalia landowner to request a large annexation within the city limits to capitalize on the need for greater industrial space.

TeVelde, Jr. is requesting annexation of more than 300 acres into the City of Visalia that will add more developable land to the Visalia industrial Park. The site is north of Riggin and east of Plaza. The multiple parcels reach close to Highway 99 to Road 68 on the northern edge of Goshen. His mixed-use proposal consists of some residential and commercial designations with 225 acres zoned for industrial uses, according to a recent plan filed with the city.
The proposed annexation adds to five other recent annexations that will bring more residential, big box commercial and industrial uses as the city expands its reach to accommodate growth. A number of these projects are still in the works, including land for Costco to build a new retail store at Riggin and Shirk and add some 500 new homes around it.

Other annexations include a 320-acre industrial project on land owned by the Ritchie family that is in the middle of an environmental review seeking approval probably early next year.

Landowners on the northern tier of Visalia have in the past few decades, cashed in on the fact that development, from residential to industrial, has been moving their way. Names include long time farming families such as Doe, Shannon and Ritchie, and now teVelde, who all own or owned mostly low-value, field-crop land north of the historic city limits. It’s not low value anymore.
Some families have taken a direct hand in the development of these lands like the Shannons, who have developed Shannon Ranch and mixed use residential and retail projects like the new northside Costco project expected to break ground in a matter of months.

Of course, the Doe family has a street in the industrial park named after them and annexed 156 acres into the city a few years ago at the NW corner of Plaza and Riggin, later sold to Fresno developer John Brelsford who is marketing it.

Also, as mentioned, the Ritchie family, who is now annexing a whole section of land into the city, has sold off the development rights to Seefried Industries awaiting completion of their environmental impact report before annexation is approved. This project is a behemoth as Seefried has come to an agreement with the Ritchie family to build a proposed 3.8 million square foot industrial complex north of Riggin Road between Kelsey Street and Shirk Road. The project is expected to employ 4,100 workers at build out.

Another industrial annexation was recently approved on 80 acres at the southwest corner of Riggin and Shirk by YS industries. The project was recently challenged with the lawsuit claiming that the city allowed the project to move forward without proper environmental studies. The city has rejected the assertion and the applicant expects the project to move forward early next year. Part of the land used to be a dairy.

Now to the west, the dairy family led by Jay teVelde, Jr. is planning to develop over 300 acres north of Riggin and west of Plaza (See maps). The specifics of the new teVelde proposal include some 225 acres of industrial, about 50 acres of high density residential and 25 acres of commercial fronting on Riggin. There’s also land set aside for a water storage basin.

Asked this week if he could comment on his annexation request, Jay, Jr. said he could not. Visalia-based 4 Creeks consultants are steering the project through the city approval process.

Family history

The teVelde family have expanded their already successful dairy operation since arriving from Southern California in 1989. Their Facebook page states Double J Dairy started Dec. 1, 1988, as a partnership between Jay teVelde, Sr. and Jay teVelde, Jr. Originally located in Chino, California, the dairy relocated to Visalia in June of 1989. The facility was an open-lot style dairy equipped to milk approximately 1,000 cows. By 1998, the herd expanded to 4,400 milking cows and was remodeled to freestall barns. Over the next two decades, teVelde, Jr. was able to expand his surrounding land base and is now self-sufficient in terms of forages while also diversifying into nut crops.

The teVelde dairy is north of the proposed annexation on Ave 328. Dairies typically own acreage around their dairy to provide a home for their dairy waste and to grow feed crops for their cows. So, it’s not unusual that teVelde owns substantial acreage nearby.

Jay, Jr. penned a paper for his CalPoly studies in 2016 mentioning some family history: “The family finds its dairy roots all the way back to George teVelde, the owner’s grandfather. George immigrated to the United States from the Netherlands in 1920. After arriving in California, George found a job as a milker in southern California. Over time George saved up enough to buy some cows of his own. He was fortunate to have the support of his boss, who helped him get started. George spent much of his working life adding to his business. Eventually George’s sons discovered their own passion for the dairy industry. One of his sons, Jay TeVelde, branched off and started his own dairy. Jay, like his father, spent most of (his) working life expanding his business. Also like his father George, Jay’s children discovered a passion for the dairy industry.”

Flurry of construction

This new annexation project is happening after a flurry of industrial construction took place in the past few years. Now the boom in industrial building activity has turned quiet in the past year. That can be seen by the shiny new 1.2 million square-foot spec building constructed by CapRock completed earlier this summer that sits empty for now. The building on Plaza north of Riggin is a close replica of two other Amazon buildings nearby. But Amazon remains mum on whether they would lease this massive building as well.

CapRock bought several sections of the land on the northeast corner of Plaza and Riggin in the 1990s from a farm family. They worked for a decade unsuccessfully trying to attract major logistic players to Visalia until they did. The big boom began when CapRock sold the corner of Plaza and Riggin to UPS for a Central Valley shipping hub. Many industrial firms use UPS for their daily package shipments.

At the time the paper reported “The Visalia UPS super hub’s location is critical, says CapRock’s Pat Daniels, because “only the Visalia/Fresno area can reach 99% of California with overnight shipments. The UPS Fresno facility is landlocked for growth and the current Visalia UPS terminal is quite small. On July 10, UPS pulled their permit for the shell of the building valued at $21.2 million. The general contractor is Layton Construction.”

CapRock set off the Visalia logistics boom, selling acreage to UPS that became a 450,000 square-foot package distribution hub that opened in 2020. That was followed by construction of the 1.1 million square-foot Amazon fulfillment center, operational as of 2021.  Between the two locations, 1,700 people are employed. That was followed by a second Amazon warehouse now operating.

As the paper has noted before, it took 60 years, 1958 to 2018, for the Visalia Industrial Park to get to 16.6 million square feet. But it may take just a few years, say 2018 to 2024, to double that square footage with all the million-square foot warehouses on tap. Looking at land, the district had 381 acres in 2018 and has already doubled that acreage today.

Not unlike the expansion of retail on Mooney Boulevard from 1980 to 2000, where we saw a steady move to open land to the south, the Visalia Industrial Park has seen a steady move north to more open land and adding larger parcels. The recent move north also includes a big retail push along Dinuba Boulevard replicating many of the retail tenants we see on South Mooney. Retail has followed a rapid construction of homes in the north in recent years. That in turn has been allowed by the city council decision to open its city limits on all sides. But that was held back for a while by a lawsuit requiring ag land mitigation – now an adopted policy. Tulare County’s Local Agency Formation Committee, which oversees municipal district boundaries, has been busy mostly approving new annexations in Visalia at nearly all of its recent meetings.

The opening of vast tracts of land for new industrial uses has its pluses and minuses, you could say. For Visalia, opening all these industrial areas promotes new jobs and tax dollars and growth of the city that may be positive or not. The tracks of land are owned by over a dozen major players allowing for competition on land prices. That helps keep locating a large complex here much cheaper to build than in the big metro areas of California.

There might be a slowdown in tenant decisions to locate here. But a number of spec builders are building in anticipation that the gravy train will continue in the next year or two and that their investment in building before the tenant shows up will pay off. That will require more land. It appears Mr. teVelde is joining the crowd

https://thesungazette.com/article/news/2024/10/17/visalia-tills-crops-into-industrial-plants/

By Faughn Distribution • New Developments • Workforce 0 Comments

Massive shipping terminal nears completion in Visalia

VISALIA – Visalia is establishing itself as a core shipping hub in California, as evidenced by a 1-million-square-foot shipping facility on track for completion in June.

Bob O’Neill, the senior vice president of acquisitions for industrial real estate agency CapRock Partners, told The Sun-Gazette that Visalia is perfectly situated for shipping. CapRock is the agency responsible for the construction of the new facility.

“One thing we like about Visalia is its central location,” O’Neill said. “It is one of the only locations where a truck driver can do a one-day turnaround within their eight-hour shift.”

O’Neill explained that the two major ports in California are Long Beach and the Bay Area, both of which can be reached from Visalia.

“Corporate occupiers like it because they can play the shipping lines and ports off of each other and have diversification and pricing power,” O’Neill said. “It is also a location that can service over 50 million people in the western U.S. That is something that is very attractive to us and the tenants we attract.”

The current buildout is just the beginning of CapRock’s investment. The property will ultimately bring more than 5 million square feet of warehouse space. The project is staggered, so once a tenant is occupying the first building, the next building will begin construction.

“It is a long-term commitment,” O’Neill said. “We really like working with the city, we believe in the region; so these are long-term investments for us.”

O’Neill said that the city has been helpful in navigating the permitting process and has been highly supportive throughout the project. CapRock first began investing in construction projects in Visalia in 2017. O’Neill said the biggest challenges up to this point have been the market timing.

“The biggest challenges have been navigating inflation which has caused significant construction cost increases and significant increases in financing costs for our construction loan,” O’Neill said. “We have been able to work through those and find a window in time that has enabled us to move forward with this project and deliver it this summer.”

A tenant has not yet been identified for the current space, but O’Neill said he anticipates a Fortune 500 corporation to occupy the property. CapRock has received “very preliminary” inquiries, according to O’Neill.

Depending on the occupant, O’Neill believes the project could employ anywhere from 300 to over 1,000 people. While the building is expected to be some type of shipping hub, O’Neill said similar buildings have been used for light manufacturing and assembly.

Companies such as Tesla frequently occupy large warehouse buildings to construct solar chargers and battery stations, which are then shipped to locations where they are installed.

“We build our facilities to be flexible in terms of what kinds of tenants can occupy them,” O’Neill said. “One of the types of tenants that we have fielded inquiries from in other markets has been the manufacturing type, with some assembly, and also a component of distribution.”

The building currently has the walls up and the roof finished. O’Neill said the next phase of the project will be paint, which he said will happen soon. At that point, O’Neill anticipates rapid increases in interest from tenants who can see the light at the end of the tunnel for the project.

Two other developments, known as CapRock Central Point 1 and 2, were completed in 2021. The shipping hub is located at 4001 Plaza Drive, which offers easy access to freeways, rail lines and airports. The building is expected to be completed in June.

https://thesungazette.com/article/business/2024/03/12/massive-shipping-terminal-nears-completion-in-visalia/

By Faughn Distribution • New Developments 0 Comments

Tejon Ranch Co. Breaks Ground on 700,000 SF Nestlé USA Distribution Center in California

TEJON RANCH, CALIF. — Tejon Ranch Co. has begun construction on a distribution center for Nestlé USA Inc., the world’s largest food and beverage company. The development is located on 58 acres of Tejon Ranch Commerce Center (TRCC) in Tejon Ranch, approximately 100 miles northwest of Los Angeles.

The multi-story, 700,000-square-foot building will be fully automated to serve Nestlé’s portfolio and designed to support future growth and expansion plans. No official opening date has been announced, but Nestlé is targeting 2025 for initial completion of construction and 2026 for commencement of operations.

TRCC represents more than 2.5 million square feet of industrial space either under construction or completed.

Mac Hewett, Mike McCrary and Brent Weirick of JLL represented Tejon Ranch Co. in the 58-acre land sale transaction.

https://rebusinessonline.com/tejon-ranch-co-breaks-ground-on-700000-sf-nestle-usa-distribution-center-in-california/

By Faughn Distribution • Manufacturing 0 Comments

Another Industrial Tenant Signs at Tejon Ranch in Southern California

Another industrial tenant is moving its operations to part of the Tejon Ranch Commerce Center (TRCC) on the biggest piece of private land in California. The joint venture of Tejon Ranch Company and Majestic Realty Company announced Tuesday that CSW Industrials’ RectorSeal, which manufactures heating, ventilation, air conditioning, refrigeration and plumbing products, is moving from Los Angeles into half of a 480,000-square-foot facility at the expansive master-planned development in southwestern Kern County. The asking rent and lease rate were not disclosed.

The developer said it has secured more than 2.5 million square feet of industrial leases at TRCC over the past 24 months. The 1,450-acre development is at the junction of Interstate 5 and Highway 99, about an hour north of the L.A. basin. It’s also home to distribution centers for tenants that include Ikea, Camping World, Caterpillar, Dollar General, Famous Footwear and L’Oréal.

Last month, Tejon Ranch Company announced it closed a $160 million unsecured revolving credit facility with AgWest Farm Credit to fund construction projects, farming and ranching operations, and pay for general corporate expenses.

JLL (JLL)’s Mike McCrary, Mac Hewett, Brent Weirick and Peter McWilliams manage the TRCC listing and represented the landlords on the RectorSeal transaction. Walt Chenoweth and Sean Sullivan with Voit Real Estate Services represented RectorSeal.

https://commercialobserver.com/2023/12/industrial-tejon-ranch-southern-california/

By Faughn Distribution • New Developments • Workforce 0 Comments

Amazon opens third fulfillment center in Tracy

Amazon officially opened their latest Tracy fulfillment center with a ribbon cutting on Friday at the 3.7 million-square-foot facility on East Grant Line Road. Director of operations Vincent Wong cut the ribbon for the facility, named SCK6, which had a soft opening in October. Assistant General Manager Mohammed Khan said the building will have approximately 1,500 employees and 3,000 robots in the building at 15000 East Grant Line Road.

At maximum capacity he said Amazon will be able to ship 1 million units a day from the facility, which is the online retailer’s second advanced robotics fulfillment center. Wong welcomed the crowd of employees, some dressed in San Jose Sharks attire, along with invited guests to the dedication.

“We are honored to serve the people of Tracy and especially honored to support our work force here in this place. At Amazon, people are our most valuable asset and resources,” Wong said. “Promotion actually plays an important part in their growth and (our employees are) promoted for recognizing our people and reaching their goals. At Amazon, we start with the community in which we work and live, including myself, we are committed to uniting Tracy and leveraging our resources for good. Since the beginning of 2022 we actually provided more than $4 million in donations for our community here and also in in-kind donations and volunteer hours.”

SCK6 is the fourth logistics center opened in Tracy by the online retailer. Mayor Nancy Young welcomed the new facility to the Tracy community noting that her youngest son had just started working at SCK6 the night before.

“When I got on council it was really hard, and even as my children were growing up, it was a challenge to get a job in the city of Tracy, especially for young people because they were really competing with a lot of adults trying to just hold on their homes and make their ends meet,” Young said. “But when Amazon came here it was the first really big opportunity for a lot of young adults and adults alike to be able to get a really good paying job to be able to take care of their finances. I’m just really excited that this is a great addition to continue to grow our community, to grow our economy and I just want to say thank you all for being a part of this and I encourage each and every one of the Sharkies, each and every one of the workers out there to keep moving forward knowing that you can continue to grow wherever you are, blossom wherever you are.”

San Joaquin County Fifth District Supervisor Robert Rickman joined in welcoming the new facility that had been in the planning stages since he was mayor of Tracy.

“When we approved this facility when I was mayor of Tracy one of the issues we ran into was this was going to be the biggest building in the city of Tracy. So, we had to work with Amazon, adjust our zoning in order to get this building built,” Rickman said. “So driving up and down Grant Line Road and seeing just a dirt field to what it is now is just absolutely amazing.”

New jobs generated by the facility will be a boon to the surrounding communities.

“One of our jobs as elected officials is to bring more jobs, bring awesome companies to our counties, to our cities, and Amazon you have fulfilled that role. The building behind me, what you see, you see local employment — people from Tracy, Stockton, Manteca, Ripon, Lodi, Livermore, the entire surrounding communities — coming to Tracy and making a living, not just for themselves but for their families their spouses and their children,” Rickman said.

He noted the health and education benefits their employees their employees and the company’s work with schools and education will make a difference in the community.

“Your footprint isn’t just here in this parking lot on Grant Line Road but encompasses the entire city of Tracy and San Joaquin County where our population is approximately 800,000 people that live here in the county,” Rickman said.

Amazon has three major centers in town include its OAK4 fulfillment center that opened in 2013, just south SCK6. Two more and two centers in the Prologis International Park of Commerce on the west side of town.

https://www.ttownmedia.com/tracy_press/amazon-opens-third-fulfillment-center-in-tracy/article_faf470c0-ce7b-11ed-a6f7-5f3f6ce4d7e1.html

By Faughn Distribution • Economy 0 Comments

‘A win for the entire region.’ Merced County awarded $49.6 million for Castle rail project

Merced County’s Castle Commerce Center is about to receive a huge boost in the form of a $49.6 million grant to build out an inland port that will improve its capacity to move freight worldwide. The California State Transportation Agency announced Merced County was awarded the grant on Thursday. “This will directly support our agricultural producers and manufacturers throughout the entire San Joaquin Valley,” said Merced County Board of Supervisors Chairman Scott Silveira.

“This is a win for the entire region,” Silveira added. “From local agricultural producers to major manufacturers throughout the Valley, being able to transport goods in a quick and efficient manner is absolutely critical. This grant will position us to drive our economy in the right direction.” In January 2022, Gov. Gavin Newsom proposed $1.2 billion for port and freight infrastructure to support the state’s goods movement networks, which have been hurt by global disruptions and increased port congestion in recent years. The grant will help the state develop a more efficient, sustainable and resilient goods movement system.

Castle’s rail district became operational in May 2022 under Patriot Rail, which operates the rail line and has already tripled the shipping volume to and from Castle in recent months, according to Merced County spokesperson Mike North. The grant will help area farmers, manufacturers and other businesses to ship and receive goods throughout the San Joaquin Valley cost effectively. “Castle’s inland port and rail activities is focused on increasing regional economic opportunities while reducing semi-truck traffic along our roadways,” North said. The $49.6 million grant will enhance Castle Commerce Center’s existing rail capacity by: Facilitating the development of 70 acres at Castle to support pre-shipment processing and intermodal cross-docking for Central Valley agricultural producers. Providing cost-effective, direct rail service for shippers. Expanding the railway to a new staging and container laydown area to support cross-docking and processing. Evaluating, engineering and planning for further expansion on existing land within Castle Commerce Center. Merced County Supervisor Daron McDaniel, whose District 3 includes Castle Commerce Center, said the inland port and rail district has been in the works for many years and is a major focal point for the county.

“This is a prime example of government facilitating an environment where the private sector can thrive,” McDaniel said. The Merced County inland port will support additional goods movement to and from the Port of Los Angeles, the Port of Long Beach and the Port of Oakland while making Merced County a focal point for inland goods movement. The rail district expansion project is expected to be complete by mid-2028. “With all that has been accomplished to date and coupled with this sizable state investment, Castle is proving to be the leading economic development site in California,” said Assistant Merced County Executive Officer Mark Hendrickson.

https://www.mercedsunstar.com/news/local/article277078128.html