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Right, image of a Gap distribution center. Courtesy Photo
$140M Gap facility
‘Historic’ Moment for Longview Economy
BY JO LEE FERGUSON AND CHRISTINA CAVAZOS
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SECTION B | FRIDAY, OCTOBER 15, 2021 QUARTERLY | 4 OF 4
jferguson@news-journal.com ccavazos@news-journal.com
Longview Economic Development Corp. celebrated many milestones in 2021, most notably a project that many described as “historic” and a “game changer.” Those words were used this year to describe news that Gap Inc. will begin building an e-commerce fulfillment and distribution center in Longview’s North Business Park off U.S. 259. The 850,000-square-foot facility will be constructed on 142 acres, with a goal that it will be fully operational by August 2022. Gap Inc., which serves as the parent company for retail brands including Gap and Old Navy, announced its plans in February. The company said it will invest $140 million in the facility by 2023. The new center, which will initially serve Old Navy’s growing online business, will create more than 500 full-time jobs in Longview by the end of 2023 and will grow to more than 1,200 full-time jobs over the next five years. Additionally, the company expects to create more than 1,000 part time seasonal jobs by 2026, Gap Inc. said in a statement. Full-time hourly salaries will be $15 to $16 an hour with benefits, according to information from Longview Economic Development Corp. “This is a big day for Longview,” Gregg County Judge Bill Stoudt said earlier this year. “This is a game changer as we say in this business when you get the type of company that Gap Inc. is.”
LEDCO agreed to a forgivable promissory note for $11.42 million for the purchase/sale of 142 acres in the North Longview Business Park, with forgiveness based on completion of the investment and employment goals over five years. LEDCO will hold a first lien deed of trust on the property where Gap Inc. will locate. LEDCO also will pay to relocate certain water, sewer and gas lines that cross the property, at an estimated expense of $997,000. In return, starting in 2022, the distribution center would be required to have an average of 255 full-time employees, ramping up to 1,222 by 2026. That would make the center Longview’s fourth-largest employer by today’s rankings, behind Christus Good Shepherd, Longview ISD and Eastman Chemical Co., according to LEDCO. Gap Inc, would make a capital investment of $110 million in 2022 and $30 million in 2023 to complete the 850,000-square-foot building, with the first certificate of occupancy issued by Aug. 2, 2022. Also, the city and Gregg County each agreed to 25-year tax abatements that would see those entities reimburse the company for its real and personal propSee GAP, Page 8B
1. Kevin Kuntz, senior vice president of global logistics for Gap Inc., 2. LEDCO President and CEO Wayne Mansfield, 3. Gregg County Judge Bill Stoudt and 4. Mayor Andy Mack speak during a press conference announcing the addition of a new Gap Inc. distribustion center in Longview. (Les Hassell/News-Journal Photo)