Waxahachie Wins the "Super Bowl"

By Don Hampton

Hard work and perseverance don't always guarantee victory. Just ask an athlete who barely lost the big game after years of preparation. But, if you work hard enough, you just might get a shot at the big time.

The people of Waxahachie, Texas understand that principle very well. And, as one city spokesman said, "It feels like we just won the Super Bowl."

He was referring to the announcement that Walgreens plans to create a regional distribution center in the rural Texas community. The center, which will house $170-240 million in inventory, represents a capital investment of $151 million in Waxahachie.

"This is the big one," said Buck Jordan, president of the Waxahachie Chamber of Commerce.

Building and growing

The facility will initially measure 650,000 square feet. But, it is located on 149 acres of land, offering ample space to nearly double the facility's size in years to come.

The distribution center will ultimately serve about 600 Walgreens stores throughout Louisiana, Oklahoma and Texas. It is one of 12 regional distribution facilities the company now has in place.

"Initially, we expect to employee 300 people when the facility opens," said Carol Hively, Walgreens corporate spokesperson. "But that number will increase when we reach full capacity." It is estimated that the facility will house around 700 employees within a few years.

"This is a great piece of news for the city," said Jordan. "I think there were 12 different towns fighting for this project."

Why Waxahachie?

Walgreens is the nation's largest drugstore chain, with sales of approximately $18 billion annually. What made the company choose Waxahachie?

One major factor was the hard work local and state economic development personnel put into the campaign.

"I have to give a lot of credit to the Texas Economic Development Department, the Ellis County Development office, the Waxahachie local government, our school district and the folks in the Chamber of Commerce," said Layne Ballard, spokesman for the Waxahachie Chamber of Commerce. "This would have been a really hard package to put together without the help of so many people."

That hard work made life (and the choice) easier for Walgreens.

"… Of all the places we're building now, everybody in my company comes back to me and says 'if every place could be like Waxahachie, it sure would be a lot easier'," said Randy Lewis, Walgreens senior vice president. "The city council, the economic development (department), and the chamber of commerce have all been great."

But hard work doesn't pay off unless you can provide results. In this case, the results were an incentive package that would have been very difficult for Walgreens to pass up. It included a seven year tax abatement of 60 percent and an applied enterprise zone, which provides qualification for a $1.3 million infrastructure grant for improving roads, water and sewer facilities offsite.

The company will also have access to Texas' Smart Jobs Program, which develops the job skills of the existing workforce and enhances employment opportunities for residents of Texas.

Hard work and competition

The nature of economic development has changed. Even smaller cities, like Waxahachie, need to be aggressively pursuing opportunities for new and expanded business.

"It's a situation where companies have the luxury of going shopping now, because the cities are trying to woo them, and Walgreens liked what it saw in Waxahachie and what we have to offer - the quality of life and the proximity to the roads and highways," Waxahachie Mayor Chuck Beatty said.

Walgreens did recognize the benefits Waxahachie had to offer. Combining low cost of living, affordable land and substantial financial incentives, made the rural community very attractive to the corporate giant.

As the Executive Director of the Texas Economic Development Office Jeff Moseley explained, "Walgreens has chosen a very important location on a strategic trade corridor. It offers them close proximity to major highways connecting to Dallas, Houston and the world's largest city, Mexico City. So it's no surprise that Waxahachie would have this kind of opportunity."

Winning the big game

For the people of Waxahachie, the point was not just to compete in the "Super Bowl." They believed that hard work would pay off with a victory and, when Walgreens came calling, they were ready. The result is a tremendous win for their community and for the corporation.