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Philadelphia Food Distribution Center Moving to the Navy Yard

Posted on: Friday, 23 September 2005, 18:00 CDT

Sep. 23--It has taken five years for city and state pols to pull together the ingredients for a new food distribution center, but the $100 million project presented yesterday is like a well-made gravy.

Gov. Rendell and state Sen. Vincent Fumo announced the deal at the Navy Yard, site of a state-of-the-art facility for the Philadelphia Regional Produce Terminal to open in two years.

The facility, which will have triple the capacity of the current terminal on Packer Avenue, ensures the retention of 1,600 employees, and will add 375 to 400 more once it opens, Rendell said.

The relocation brings two additional economic benefits that sweeten the pot for the city.

The first is construction of an extension of Delaware Avenue over a half-mile of railroad tracks into the shipyard to provide access for 1,500 to 2,500 18-wheelers that service the terminal daily.

The access ramp also opens the entire eastern end of the Navy Yard for redevelopment.

Second, the Philadelphia port can now expand onto the 30 acres vacated by the food merchants.

This will mean more ships, more containers and more jobs at the port, Rendell said.

The produce terminal, which includes 41 companies generating $1.5 billion in annual sales, was heavily courted by New Jersey, New York and Delaware.

The merchants agreed to stay in Philadelphia after Rendell, Fumo and Mayor Street committed to building a new terminal at the Navy Yard. The location allows the merchants to take advantage of substantial business-tax breaks.

The new terminal will include about 890,000 square feet for fresh produce and about 160,000 square feet for seafood.

The finance plan calls for $50 million in state capital funds and $50 million in bonds, which will be paid off by using the rent collected from the merchants, Rendell said.

PennDOT had no estimate on the cost of the access ramp.

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Source: The Philadelphia Daily News

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