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    McLane to Begin Construction on New Facility

    Jessup, Pa., will be the home of a 400,000-square-foot distribution center.

    SCRANTON, Pa. -- Construction will soon begin on McLane's latest 400,000-square-foot grocery distribution center in Jessup, Pa., which will lead to 500 new jobs for Lackawanna County, Governor Edward G. Rendell said.

    The center will be the anchor for the Valley View Business Park's phase II project. McLane expects to occupy the building by June 2008, reaching the 500-job mark within three years.

    "One reason McLane chose Pennsylvania to do business is because of our competitive business environment," Rendell said in a written statement. "With our attractive mix of a business-friendly tax code, easy access to investment capital and a well-trained workforce, the company realized it could locate here and succeed here."

    The $60 million project will provide grocery distribution services for the c-store, mass and drug channels in the mid-Atlantic region. The facility will be No. 20 for the company across 18 states, CSNews Online reported in January.

    The building will be located within a Keystone Opportunity Expansion Zone (KOEZ), which attempts to turn unutilized space into thriving business centers and also entitles companies to certain tax benefits.

    "McLane is proud to join the growing community of Jessup and the vibrant Pocono region," said Mike Youngblood, president of McLane Grocery Distribution. "Jessup was selected after a comprehensive search that included the consideration of multiple sites in the region. We are committed to superior service and to the success of our customers and the addition of the new facility in Lackawanna County will contribute to that success."

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