Distribution center expected to create 61 jobs
After several months of mystery regarding the tenant of a proposed large warehouse and distribution center in Rosemount, the city revealed that The Home Depot will occupy the 417,600-square-foot building that will be southeast of Highway 3 and County Road 42.
It is The Home Depot’s third such facility in the Twin Cities metro. The other two are located in Minneapolis, northeast of the University of Minnesota, and in St. Paul’s Energy Park Drive area.
The Rosemount distribution center is expected to create 61 jobs, and help provide materials to commercial contractors and serve The Home Depot’s locations in Apple Valley, Burnsville, Eagan and Inver Grove Heights, along with those in Rochester and Albert Lea, among others. The Home Depot has 33 stores in Minnesota.
The city said the project would increase the city’s tax base by $620,000 annually and is expected to open in spring 2023.
“As Rosemount continues to grow and develop, we are looking for a strong blend of business and housing to ensure that our residents have the opportunity to find good paying jobs, life-cycle housing, and a high quality of life,” Mayor William Droste said in a press release. “We are thrilled to welcome a household name like The Home Depot who has a great reputation and will be a wonderful contributor to our local economy.”
Seefried Industrial Properties, which owns the property and guided the plan through the city’s approval process, recently started work on the 70-acre parcel in the Rosemount Business Park just east of the rail line through town.
One of the reasons the Rosemount site may have stood out among others is its proximity to the rail line. The development plans include two rail spurs accessing the site for loading and unloading materials.
The city said the project will result in extending Boulder Avenue for access to Highway 3, alleviating traffic on County Road 42 and providing access to other Business Park sites that could be developed.
The Home Depot site isn’t the only distribution center under development in Rosemount. The city recently approved plans for a 548,000-square-foot FedEx site northeast of the Highway 52 and County Road 42 junction.
Rosemount Economic Development Coordinator Eric Van Oss said the city doesn’t have any large distribution facilities like these.
“They probably won’t be the last,” Van Oss said.
He said the city has about 800 acres of available land in the Rosemount Business Park or adjacent to it in the UMore area.
Developments like this help build the city’s tax base and provide jobs. The FedEx site is expected to employ 400-600 workers, while The Home Depot location is projected to employ 61.
Other current major commercial employers in Rosemount include Flint Hills Resources (1,300 employees), Wayne Transports (460), Cub Foods (130), Spectro Alloys (121) and El Dorado Packaging (90).
Van Oss said it was around the first of the year that Seefried had lined up The Home Depot as the potential tenant.
In 2017, The Home Depot announced a $1.2 billion investment in its supply chain and is in the process of building out its network with about 150 new facilities nationwide, it said in an August 2021 release.
The company said the distributions centers are investments in the company’s supply chain, getting it closer to its goal of “offering same day and next day delivery to 90% of the U.S. population.”
The Home Depot operates 2,298 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2020, it had sales of $132.1 billion and earnings of $12.9 billion. The company employs approximately 500,000 associates.