This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

GREENWOOD, Ind. – FedEx no longer plans to build a $259 million distribution center in Greenwood.

The company and the City announced the news in a joint press release Saturday evening.

FedEx said the decision is based on its projected operational needs:

“FedEx Ground is constantly evaluating the capacity needs of its network. Automation and technological enhancements we have made to our network over the last decade have enabled us to continue to increase the utilization of our existing capacity while serving the growing needs of our customers.

Incentives offered by the City of Greenwood were generous and very much a positive for our initial consideration of that location, and we thank Greenwood for its partnership throughout this process. The Indianapolis area remains an important market for FedEx, both for our current operations and as we consider the future needs of our network.”

The City said it’s disappointed in the decision but appreciates the company’s transparency and collaboration throughout the evaluation process.

City officials said the silver lining is that the initial decision by FedEx to explore such a large investment in Greenwood has led to interest from a number of other high-profile companies.

“Pitney Bowes will soon open a large facility nearby, and we anticipate several others will express interest as news spreads that this desirable property is now available,” said the City.

The center would have employed 80 full-time workers at an average hourly wage of $24.55 per hour and 375 part-time workers at an average hourly wage of $14.24. It would have been built along the east side of I-65, north of the Worthsville Rd. exit near Graham Rd.