Sign Montana Connections Business Development Park

A sign in this file photo from 2016 lists businesses located in the Montana Connections Business Development Park located in Silver Bow west of Butte.

Construction is underway on a $3.5 million project to expand Butte’s FedEX Freight facility in the Montana Connections Business Development Park west of Butte.

In September, board members for Butte’s Tax Increment Financing Industrial District awarded the project a $200,000 grant. The business development park resides within the district overseen by the board, which uses tax increment financing to fund infrastructure-related projects.

FedEX’s landlord VEREIT, a real estate company based in Phoenix, is financing the project, but FedEx will be the beneficiary of the grant through reduced lease rates.

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Ron Mears, communications adviser for FedEX, said in an email message that the expansion includes increasing the area of pavement around the facility’s dock and shop, as well as expanding the team-member parking lot. Expansion is expected to conclude midway through 2019, Mears said, adding that “there are no additional property development details to provide at this time.”

The FedEX facility employs around 95 people. But according to FedEX’s grant application, the expansion could make room for 31 more employees over the next 15 years. TIFID documents estimate the yard expansion at about 8 acres and the cost of the project at $3.5 million.

FedEX opened its Montana Connections site in 2011. A news story leading up to the groundbreaking of the then 45,000-square-foot facility gave it an $8 million price tag. Butte’s TIFID also gave that project a grant, of $550,000.

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