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Illinois cosmetics company plans Greenwood facility, 500-plus jobs

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A cosmetics retailer plans to open a distribution center in Greenwood that will add more than 500 jobs over the next five years.

ULTA Beauty of Bolingbrook, Ill., is spending $51.6 million to lease and buy equipment for a more than 670,000-square-foot distribution center in the Southpoint Business Park. The facility, which will supply hair care products, perfumes and cosmetics to 400 retail stores and fulfill online orders, will be the city’s largest single-tenant building.

ULTA has its own line of beauty products but also sells Clinique and other makeup brands at its 675 stores, including four in the Indianapolis area. The Greenwood facility on Graham Road will be the company’s fourth and largest distribution center, joining facilities in Illinois, Pennsylvania and Arizona.

The company will hire about 530 full-time employees within the next five years to work in the warehouse. Salaries for the jobs will total

$14.5 million, which does not include benefits including health insurance, dental insurance, life insurance and retirement. ULTA plans to begin hiring warehouse associates, material handlers, warehouse clerks and human resource professionals, as well as managerial positions and a distribution center director, for the Greenwood location this summer, according to a news release from the Indiana Economic Development Corp.

Greenwood is offering two 10-year tax breaks as incentives. Industrial Developments International will own the building and would save $4.9 million in property taxes over 10 years on an up to

$33 million investment in the property. ULTA would save $3.5 million in property taxes over 10 years on an up to $18.6 million investment in equipment. The state offered ULTA up to $3 million in tax credits based on the company’s job creation plans, the release said.

Greenwood’s proximity to Indianapolis and the potential employees the area offers, as well as financial incentives from the city, attracted ULTA to the area, said Derek Hornsby, ULTA senior vice president of supply chain operations. The company committed this week to locating in Greenwood.

The building is Southpoint Business Park’s second facility, joining the Neovia building, which opened several years ago. The ULTA property is 44 acres out of the business park’s total of 177 acres.

Industrial Developments International is building the facility, and ULTA will lease it. ULTA has tried to hurry construction because of how rapidly business is growing, and it needs the Greenwood facility to keep up with the growth, Hornsby said.

The company hopes construction will start within the next two weeks and completed by early fall, he said. ULTA would then start distributing beauty products from the facility in April or May 2015, he said.

The investment the company is making in roads and other infrastructure will make two other lots shovel-ready, Mayor Mark Myers said.

Not having sites with infrastructure has hindered development in Greenwood, he said. The work will make Southpoint Business Park a prime location for more industrial projects, he said.

“It’s awesome. I foresee all of this developing at a rapid pace,” he said.

The project is the largest to come to Greenwood during Myers’ two years as mayor and brings the most jobs of any during that period, Johnson County Development Corp. President and Chief Executive Officer Cheryl Morphew said.

“It’s not only a huge win for Greenwood but also Indiana,” she said.

News of the project came just days after Greenwood officials announced that GoodSports Enterprises Global of Sarasota, Fla., had proposed investing about $22 million in a hotel and sports complex at Graham and County Line roads.

“This has been a week that most mayors dream of,” Myers said. “We are now on the cutting edge of taking off and growing.”

The company announced its plans to locate in Greenwood at a news conference Thursday near the proposed building site. City and state officials and company representatives attended. Lt. Gov. Sue Ellspermann spoke about how ULTA’s decision to come to Indiana reflects the state’s vibrant economy. She said she’s also excited about the company’s products.

“I’ve already made my personal commitment to keep them going,” she said.

The Greenwood redevelopment commission unanimously approved the incentives. The city council heard an introduction of the incentives, but did not vote. The council will be asked to vote on the incentives later this month.

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