TEXAS (August 19, 2010)—Cited as an example of regional cooperation, Sysco broke ground on its new distribution center in Schertz. Area dignitaries, residents and Sysco officials and employees gathered in the sweltering heat for the groundbreaking of the company's new 635,000 square-foot distribution center, which will be built next to the Lack's Furniture distribution facility on Schwab Road off Interstate 35.
Sysco, the Fortune 500 food service company, will consolidate its San Antonio and Round Rock operations at the new distribution center once it is completed, which is expected to be in late 2011.
The new distribution center will employ 600 people, who will be relocated from the San Antonio and Round Rock distribution centers, which will close once the Schertz distribution center is completed.
Schertz Mayor Hal Baldwin said the project is a result of three entities, the cities of Schertz and New Braunfels, and Comal County, working together. The distribution center will be located in Comal County, within the Schertz city limits, near New Braunfels.
“This has been a remarkable project,” Baldwin said. “I think this is the premiere economic project the city has participated in. It is number one.”
As part of the incentives to entice Sysco to come to Schertz, the city has pledged $1.4 million in infrastructure improvements and Comal County Commissioners Court has agreed to an eight-year tax abatement deal with the company. The distribution center is expected to provide $1.1 million in property and sales tax revenue to Schertz's coffers during its first year in operation.
“We had great synergy on this project,” remarked Comal County Commissioner Jay Millikin. “You got a local (county) commissioner and a local mayor working together.”
Bill Fisher, president of Sysco-San Antonio, said the new distribution center's central location will help Sysco better serve its customers from Austin to the Rio Grande Valley. He thanked retired Sysco Vice Chairman Ken Spitler and Chairman Bill Deleaney for their help in the project.
“This will be the largest Sysco facility in the nation, 635,000 square feet,” Fisher said. “It is a tribute to people in both San Antonio and Austin ... they thought we could do this.”
Fisher said the groundbreaking of the Schertz distribution center reminded him of how John Baugh, the founder of Sysco, started the company 40 years ago.
“Sysco was a collaboration for a group of great companies that came together, and great people that came together, to build Sysco,” he said. “Guess what, it came back around again. What a blessing and what a tribute to Mr. Baugh.”