Ottawa center to add jobs

American Eagle to expand plant

American Eagle Outfitters is preparing to double the size of its distribution center in Ottawa and add 300 jobs in five years.

The company confirmed Wednesday that it would spend at least $55 million to add 540,000 square feet to the existing center at 1301 Davis Ave., bringing the complex’s total size to about 1 million square feet. American Eagle plans to break ground on the project Wednesday and have it completed in about a year.

After considering potential sites nationwide, the Pittsburgh, Pa.-based company settled on expanding in Ottawa because of the center’s strength and access to Interstate 35.

“We have great logistics and infrastructure here,” said Rick Stukus, Lawrence, senior director for operations and projects at American Eagle.

Ottawa and Franklin County officials have granted a 10-year, 100 percent abatement on property taxes for the project, he said. The company also intends to take advantage of tax credits and training grants offered by the State of Kansas.

American Eagle plans to hire 190 employees by April 2008, Stukus said. Hiring is scheduled to begin in June.

The existing center has 250 employees, who work to distribute apparel and accessories to American Eagle’s 400 stores west of the Mississippi River, including downtown Lawrence.

After the expansion, the center will continue to serve those shops, but also will handle Internet sales, all intimate apparel and all products for a new line of stores, called Martin + Osa, designed to appeal to 25- to 40-year-olds, said Bruce Re, a project spokesman.

In 2000, American Eagle – which now has more than 800 stores – originally had planned to build a 402,000-square-foot, $42 million distribution center at the East Hills Business Park in Lawrence. But later that year, the company dropped those plans amid public opposition to the project’s anticipated tax breaks, the company’s wage scale and planned redevelopment of farmland.

American Eagle instead turned to Ottawa, opting to spend $31.5 million redeveloping an existing building with future space for expansion.