< Previous120 JULY 2021 S I T E S EL E C T I O N from local and state leaders and look forward to creating new, full-time jobs for the local community.” Logistics Factors Drive E-commerce Firms to Kansas City Missouri’s location in the center of the U.S. makes it a top destination for companies exploring new sites for their distribution centers, as it is centrally located in the Midwest and the center of North America. Missouri’s strategic position allows companies to access more than half of the continental U.S. within a day’s drive — and the rest within two days. The additional benefit of having an extensive logistics network including river barge, Class I railroads, international airports and highways means goods can move in and out of the state with ease. In the last half of 2020, Missouri welcomed several newcomers to the state, including Chewy, Inc., BoxyCharm and Kenco Logistics Services, Inc., totaling more than $225 million in new capital investment and creating nearly 2,000 new jobs in the state. Last summer, online pet supply retailer, Chewy, Inc., opened a new 800,000-sq.-ft. e-commerce fulfillment center in Belton where it will create more than 1,200 new jobs in the Kansas City region. “Now more than ever, Missouri’s innovative businesses, logistics infrastructure, and talented workforce are critical to our economy,” Governor Mike Parson said. “Chewy’s decision to expand in Belton and create new jobs for Missouri families is a testament to our ongoing business strengths as we work to recover from COVID-19. We welcome Chewy to Missouri and look forward to working together as the company grows and invests in our state.” Founded in 2011, the popular pet company operates out of more than 15 locations across the U.S. Chewy’s new Kansas City operation at Southview Commerce Center will be one of the largest fulfillment centers in its network by square footage. “We are thrilled to open our first fulfillment center in Missouri and continue to grow our team. We’re so excited to be a part of this community and look forward to having a presence in the region,” said Diane Pelkey, vice president of communications and public relations at Chewy. Partners working together to attract Chewy to the Kansas City area included the Kansas City Area Development Council, Missouri Partnership, City of Belton, Cushman & Wakefield, NorthPoint Development, Evergy, Spire, QPS Employment Services, Aerotek and KC SmartPort. Photo courtesy of Amazon S I T E S E L E C T I O N JULY 2021 121 “This is the perfect time to welcome Chewy, Inc.’s e-commerce fulfillment center to the KC region,” said Tim Cowden, president and CEO of the Kansas City Area Development Council. “The KC Heartland is the crossroads of North America and offers a strong advantage for e-commerce operations.” In November 2020, Kenco, a leading third-party logistics platform, also opened a new distribution facility in the Kansas City area in Liberty, a center for logistics excellence that was named among the Top 10 U.S. Central Warehouse Sites by Supply Chain Quarterly (along with St. Peters and Springfield, Missouri) due to its operating cost comparisons. With increased online shopping resulting from the global pandemic, companies are looking to the Kansas City area for lower costs and more favorable taxes for their supply chain facilities. The KC region is supply-chain-centered, and in the past five years, has successfully attracted e-commerce and distribution companies pledging to create more than 10,200 jobs, invest $1.8 billion and occupy 16.7 million square feet. “We are excited that Kenco Logistics, one of the top 10 logistics companies in the world, selected the Liberty Logistics Park and our community for their new facility,” said Lyndell Brenton, mayor of Liberty. “Their decision to locate here reinforces Liberty’s place as a growing logistics and distribution hub in the Midwest. While Liberty Logistics Park is still under construction, we believe our community values, location and ‘can do’ attitude are the differentiators that attract new businesses, like Kenco Logistics, to Liberty.” In the last 5 years, the Kansas City region has successfully attracted e-commerce and distribution companies pledging to create more than 10,200 jobs, invest $1.8 billion and occupy 16.7 million sq. ft.122 JULY 2021 S I T E S EL E C T I O N Source: Site Selection State of the States Report, January 2021 Higher Ed. R&D Expenditure in $000s: 2,475,305 Number of NCRCs: 115,416 | Percent Improvement 2019–2020: 0.31% Business Tax Climate Rank Change 2020–2021: 0 Industrial power cost per kWh: $7.11 Total Revenue as Share of Total Expenses, FY 2004-2019: 104.7% 2020 Workers’ Comp Index Rate: 1.81 N E W JER SE Y by SAVANNAH KING savannah.king@siteselection.com S T A TE SPO TLIGHT NEW JERSEY Selected Project Investors 2020 COMPANY CITY Amazon.com, Inc. Franklin Township Amazon.com, Inc. Carneys Point Township Mark Anthony Brewing Inc. Phillipsburg US Elogistics Service Corp Mount Olive Deloitte LLP Morristown Fisher & Paykel Appliances, Inc. Piscataway The Home Depot Inc Perth Amboy Source: Conway Projects Database New Jersey Shores Up its Claim to U.S. O shore Wind Energy National Rankings Source: Site Selection State of the States Report, January 2021 Higher Ed. R&D Expenditure in $000s: 1,231,753 Number of NCRCs: 895 | Percent Improvement 2019–2020: 12.44% Business Tax Climate Rank Change 2020–2021: 0 Industrial power cost per kWh: $10.56 Total Revenue as Share of Total Expenses, FY 2004-2019: 91.5% 2020 Workers’ Comp Index Rate: 2.84 Cape May, New Jersey Photo: Getty Images The off shore wind industry is about to take off in the U.S., and New Jersey is poised to become the epicenter. After several false starts over the years, it seems off shore wind is fi nally garnering the support needed to expand in the U.S. e Biden administration has set an ambitious goal to jump-start the off shore wind sector with gigawatts (GW) of U.S. projects by . In his fi rst week in offi ce, President Joe Biden issued an executive order calling for new infrastructure investments in clean energy. In particular, the order committed to expanding opportunities for the off shore wind industry up and down the Atlantic coast, in the Gulf of Mexico, and in Pacifi c waters. In March, the Biden Administration announced a series of steps to catalyze off shore wind energy while strengthening the domestic supply chain and creating jobs. “President Biden has declared very clearly that when he thinks of climate, he thinks of people and jobs — good- paying, union jobs,” said National Climate Advisor Gina McCarthy. “ at’s because President Biden believes we have S I T E S E L E C T I O N JULY 2021 123 an enormous opportunity in front of us to not only address the threats of climate change, but use it as a chance to create millions of good-paying, union jobs that will fuel America’s economic recovery, rebuild the middle class, and make sure we bounce back from the crises we face. Nowhere is the scale of that opportunity clearer than for offshore wind. This commitment to a new, untapped industry will create pathways to the middle class for people from all backgrounds and communities.” Biden’s offshore wind goals align perfectly with those put in place by New Jersey Governor Phil Murphy in 2019. New Jersey’s ambitious clean energy goals will necessitate 7,500 megawatts of offshore wind energy by 2035. Indeed, the state has one of the most ambitious Renewable Portfolio Standards in the nation, requiring 35% of the energy sold in the state to come from qualifying energy sources by 2025 and 50% by 2030. Eventually, there could be as many as 2,000 turbines in the Atlantic, but today there are only seven — five off Rhode Island and two off Virginia. The Bureau of Ocean Energy Management (BOEM) anticipates initiating the environmental reviews for up to 10 additional projects later this year. Three Projects with Massive Potential One of the key parts of Biden’s plan involves fast-tracking critical permitting milestones for New Jersey’s Ocean Wind Offshore Wind Project. Currently in the development stage, Ocean Wind is being developed by Ørsted and PSE&G with a total capacity of 1,100 megawatts (MW) — enough to power 500,000 homes across New Jersey. The project will include 92 turbines off Cape May in southern New Jersey. Ocean Winds should have final federal approval by June 2023. BOEM will Ørsted wind turbines turn at the Anholt wind farm in Denmark. Photo courtesy of Ørsted126 JULY 2021 S I T E S EL E C T I O N soon prepare an environmental impact statement for the Ocean Wind project, which will put it in line to become the country’s third commercial-scale offshore wind farm. Another proposed development off the New Jersey coast, Atlantic Shores, is a joint venture between Shell New Energies U.S. and EDF Renewables U.S. Over the summer, surveying ships began exploring potential export cable routes leading toward Atlantic City from a 183,000-square- mile lease area in the ocean. The Atlantic Shores ocean plot stretches eight to 20 miles off the coast between Atlantic City and Barnegat Light on Long Beach Island. The wind farm could generate 2,500 MW of clean energy. “This bold agenda to develop offshore wind in the United States will create tens of thousands of jobs and build a more robust green energy economy in this country,” said Joris Veldhoven, treasurer and commercial director at Atlantic Shores Offshore Wind. “The investments in strengthening port infrastructure and the domestic supply chain will open communities across the coastal U.S. up to tremendous economic opportunity on the international stage. As a developer, we appreciate the advancement of critical permitting milestones for projects in New Jersey and beyond. Together, these priorities will accelerate offshore wind growth and its many economic benefits for coastal communities. “New Jersey is particularly well-poised to seize this opportunity and meet the growing demand for labor thanks to the strength of its unions,” Veldhoven said. “It’s why we are proud to be partnering with six local unions to train and hire the workforce that will build New Jersey’s green infrastructure as part of our bid submission. We look forward to working with elected officials at every level of government, in New Jersey and in Washington, to help realize this vision.” A third wind energy project is also eyeing federal waters approximately 12 nautical miles south of Long Island, New York, and 17 nautical miles east of Long Branch, New Jersey. In June, BOEM began conducting an environmental review for Empire Wind, LLC. If approved, Empire Wind would be allowed to construct and operate two wind energy facilities offshore New York and New A worker climbs a wind turbine tower at Ørsted’s Walney wind farms in the Irish Sea. Photo courtesy of ØrstedNext >