Family Dollar to Employ 500 in Maquoketa

8/23/01

Family Dollar's construction of its new distribution center is approximately 1 month ahead of schedule.  

Amidst an army of up to 5 contractors, all pursuing different aspects of the second phase of the development of the Maquoketa Highway 61 Industrial Park, a skeleton of concrete and steel is taking shape.  

In January 2001, the City of Maquoketa and Family Dollar Stores, Inc. jointly announced Family Dollar's intent to open a new 907,000 square foot distribution center to be located on a 74.2 acre site in the Highway 61 Industrial Park.  The new facility is expected to be fully operational by August 1, 2002. 

Family Dollar, one of the nation's fastest growing discount chains, expects to hire approximately 500 employees at the fully automated distribution facility and invest at least $50,000,000 in the project.

In announcing plans for the new distribution center, R. David Alexander, Jr., Executive Vice President and Chief Operating Officer for Family Dollar, stated, "The Maquoketa Highway 61 Industrial Park is an ideal location for our distribution center. This is a region where Family Dollar has a heavy concentration of stores, and the Company continues to add new stores at a rapid pace as part of an aggressive store expansion program. This location offers outstanding access to major interstate highways, which will be utilized to speed deliveries of merchandise to our stores. Most importantly, all of us who have had the opportunity to work with Governor Vilsack and other officials and representatives of the State of Iowa, Jackson and other counties, the City of Maquoketa, the Maquoketa Industrial Development Assistance Service and the East Central Intergovernmental Association have been impressed with their commitment to economic development and growth. There has been a real spirit of cooperation, and we have been made to feel welcome. All of us at Family Dollar look forward to becoming an active member of the local communities."

C.J. Niles, Director of the Iowa Department of Economic Development, said, "We are very pleased that Family Dollar is building a major distribution center in eastern Iowa and making this investment in one of Iowa's Enterprise Zones. Family Dollar is bringing a substantial payroll to our state as well as a highly automated distribution center."

As part of the project, the City and Jackson County have secured $1,000,000 from the Iowa Department of Economic Development to provide necessary water and sewer main extensions, and a water storage facility. The City will also be receiving a $1,308,000 grant from the Iowa Department of Transportation for the street extensions to the site. The company is providing the City with a payment of $87,000 annually for 14 years to help pay the up-front costs of the improvements.

The Maquoketa Municipal Electric Utility (MMEU) is also a major partner in the project. MMEU will be providing electrical power to the expansion project by constructing a substation in the new industrial park and looping its electrical lines. With the addition of two new Generac generators in the industrial park, MMEU will not only be able to provide standby electrical power for the industrial park, but for the City as well.

In addition to the previously mentioned incentives, Family Dollar is receiving the following assistance from the State, City, and County:

1.) A $500,000 forgivable loan from IDED to assist in purchasing the property.

2.) A $200,000 forgivable loan from the City to assist the project expansion.

3.) Enterprise Zone benefits, including a 100% tax exemption for 10 years, and a refund of sales tax on the construction materials used for the expansion.

4.) Purchase of material handling equipment by the County with a lease arrangement paying for the total cost of the equipment.

5.) A rebate of taxes after the property tax exemption equal to the amounts paid to the City by the company ($87,000 per year)

6.) Job Training funds from the Community College estimated at $1,400,000.

Other agencies and organizations making this project a reality included the Maquoketa Industrial Development Assistance Service (MIDAS), the City's non-profit development corporation that worked successfully in obtaining control of the land and the East Central Intergovernmental Association (ECIA), which contributed to the packaging of the various economic incentive programs and will help administer those programs as the project evolves.

Family Dollar Stores, Inc., headquartered in Matthews, North Carolina, currently operates 3,875 stores in 39 states and has fully automated distribution facilities in Matthews, NC; West Memphis, AR; Warren County, VA; Duncan, OK; and Rowan County, KY.

During the fiscal year ended August 26, 2000, the Company opened 406 new stores, and during the current fiscal year plans are to open approximately 500 new stores. The merchandising concept responsible for this growth provides consumers with good values in low cost, basic merchandise for family and home needs. Since 1959 with the opening of the first Family Dollar store, the store expansion program has been financed entirely with internally generated funds, and the Company has no long-term indebtedness. Family Dollar Stores, Inc. is a publicly held corporation with its Common Stock listed on the New York Stock Exchange under the ticker symbol FDO.