DHL plans 'speculative' $3.2 million distribution facility near Tennessee-Mississippi line

Clarification: This story has been updated to say that the distribution facility is expected to be built on land owned by DHL Supply Chain near Tchulatech Drive and Tchulahoma Road.

A new $3.2 million distribution facility could rise on a vacant lot owned by DHL Supply Chain near Tchulatech Drive and Tchulahoma Road in Memphis near the Tennessee-Mississippi line.

A building permit for the approximately 971,000-square-foot facility was filed Wednesday. According to the permit the project is "Subject and contingent upon receiving financial incentives from Tennessee."

"That's a speculative building," said Steve Hess, vice president of real estate development for DHL. Hess did not share any additional information about the plans for the project, the number of jobs that could be created, what kind of products would move through the facility or the value of possible incentives.

Despite the note on the permit about state incentives, state officials did not share any information about the project either.

Jennifer McEachern, spokesperson for the Tennessee Department of Economic & Community Development, said she "can't comment on unannounced projects."

The construction company behind the project was listed as Arco National Construction, a St. Louis company that has built industrial facilities all over the country.

The company has worked with many large companies including DHL, Amazon and FedEx.

DHL purchased the 61-acre lot from Belz Enterprises' Southridge Industrial GP for about $1.7 million in December 2017, records show.

The permit filed Wednesday listed an address just to the north of the DHL property but both Belz Enterprises, which owns that property, and DHL confirmed that the work is planned for the DHL property to the south.

Desiree Stennett covers economic development and business at The Commercial Appeal. She can be reached at desiree.stennett@commercialappeal.com, 901-529-2738 or on Twitter: @desi_stennett.