FedEx Ground will occupy a 100,000- square-foot building to be built on land leased from the Washoe County Airport Authority, a company spokesman confirmed last week.
Although the company was widely believed to be a key player in the development of 38 acres bounded by Longley Lane, Rock Boulevard and East McCarran, FedEx Ground didn't confirm its plans until a lease with the airport authority was signed.
Scannell Properties of Indianapolis will build the facility and lease it to FedEx Ground.
FedEx Ground plans to occupy the building by November, said David Westrick, a spokesman for the company based in Pittsburgh.
The new facility will replace a facility FedEx Ground currently operates at 1105 Kleppe Lane in Sparks.
That facility is about 23,000 square feet.
Westrick said the new facility will have the capability to house about 100 delivery vans; currently, the company is limited to 36 vans at the Sparks site.
The expanded operation probably will mean additional employment, but Westrick said it's too early to project how much hiring will occur.
The new facility in Reno is part of a $1.8 billion effort by FedEx Ground nationwide to double the capacity of its system.
The company, one of three operating units of Memphis-based FedEx, delivers small packages within one to five business days.
The small package operation dates to 1985, when it was created as RPS, a division of Roadway Services.
FedEx acquired RPS in 1998 and changed its name to FedEx Ground in 2000.
The other operating units of FedEx are FedEx Express, the overnight package service, and FedEx Freight, regional trucking firm handling less-than-truckload shipments.
Scannell Properties, which has developed other facilities for FedEx across the country, leased the 38 acres from the airport authority for 28 cents a square foot for buildable land and 18 cents for land that must be kept vacant.
Trammell Crow Co.
will work with Scannell to develop industrial uses on the portion of the property which isn't devoted to the FedEx Ground facility.