Fresno tweaks incentive agreement for Ulta cosmetics warehouse

A package of tax rebates and other economic incentives worth up to $18 million for Ulta Inc. to lure a large Ulta distribution center to Fresno is undergoing some tinkering since it was approved in November by the Fresno City Council.

Council members on Thursday approved changes to the 30-year agreement, based on the cosmetics company’s determination that if it selects Fresno as the site for a warehouse, it would be leasing as a tenant rather than owning the property outright. The site under consideration is a 38-acre parcel at the northwest corner of Central and East avenues, in an industrial area at the south end of Fresno.

The $110 million, 670,000-square-foot warehouse would be the site where Ulta Cosmetics will fulfill orders from its growing online sales business.

“Whether the company chooses to lease or build and own a facility is immaterial to, and not a factor in, our offer of job-creation incentives,” said Larry Westerlund, the city’s economic development director, in a memo to the City Council.

Fresno is one of three locations identified by the company in the western U.S., and city leaders are eager to land the warehouse – and the 1,200 new jobs that it could mean for the area.

“Approval of this (revised) agreement is one of the final steps to secure these new jobs for the community,” Westerlund said.

Ulta Salon, Cosmetics and Fragrance Inc. is the largest beauty retailer in the nation with more than 900 stores in 48 states. Ulta Inc. is the division of the company that deals with e-commerce and distribution centers.

This story was originally published February 2, 2017 at 4:20 PM with the headline "Fresno tweaks incentive agreement for Ulta cosmetics warehouse."