Gap bringing fulfillment center to Fresno, expected to add more than 500 jobs

Fresno is getting another big e-commerce fulfillment center – and more than 500 new jobs.

Fresno city officials and San Francisco-based clothing apparel company Gap, Inc. have reached an agreement to establish the company’s e-commerce fulfillment center near its current distribution facility, Mayor Lee Brand announced Thursday morning. The city says the move is expected to add at least 515 full-time jobs to the retailer’s operations here over a three-year period.

The agreement is being made possible by the mayor’s Economic Expansion Act, which provides performance-based job incentives for companies looking to grow and move to Fresno.

Brand called the relocation of the fulfillment center from out-of-state to the city “a shot in the arm for Fresno” and “a breath of fresh air.”

It’s unclear from where the fulfillment center is relocating. Gap has at least one western U.S. fulfillment center, in Phoenix, job postings on its website shows.

The mayor has a goal of 10,000 “new, good-paying” jobs for the city. The 515 full-time jobs will start at about $32,000 annual salary.

The impact of the deal will mean about $146 million over 30 years in property and sales tax for the city, county, Fresno Unified and other special districts. That’s about $58.6 million for the city of Fresno.

“Fresno continues to build momentum as more major corporations like Gap are establishing expanding their operations in our great city. Companies know we are open for business and will help them grow,” Brand said.

Under the agreement, the 351 existing employees at the company’s current 3400 Gap Drive distribution facility will remain.

The package also includes the potential for hundreds of additional part-time or seasonal employees during peak business periods, according to the release. The company will invest at least $80 million in equipment and improvements for the fulfillment center, which will be established inside an existing building owned by the Gap at its Fresno site.

“For over 18 years, our Fresno distribution campus has played a pivotal role in providing great service to our customers,” said Shawn Curran, Gap’s executive vice president of supply chain and product ops. “It serves as a key strategic location for growth and opportunity. We consider our Fresno team members to be the very best in the business. We are thrilled to move on to the next step in our journey as we expand our operations adding 500 new jobs in the next two years.”

Curran thanked the city of Fresno for its support in the planning process.

Gap has been in Fresno since 1999 with a huge distribution facility just north of Fresno-Yosemite International Airport. Gap bought 216 acres from the city of Fresno in 1997 for $2. The site includes a 5-acre, 1.9-megawatt solar farm to power its 2 million-square-foot distribution center.

The city later paid $5.8 million plus interest over 10 years in a settlement after the Federal Aviation Administration contended the city had a duty to sell the property at market value and reinvest the money into the airport.

The new agreement with Gap is expected to go before the City Council for final approval April 5.

Brand said he expects the fulfillment center to be fully functional by next year.

Brianna Calix:559-441-6166, @BriannaCalix