Wal-Mart center opens in Lewiston

LEWISTON – The first phase of what will be a $60 million Wal-Mart Inc. distribution center has been up and running since late June, putting the retail giant on track to meet its promise of bringing hundreds of jobs and future tax revenue to Maine’s second-largest city.

A ceremony Wednesday marked the center’s official opening.

About 200 workers have been hired for Phase 1, a 415,000-square-foot warehouse for nonperishable items.

Phase 2, a 485,000-square-foot refrigeration warehouse scheduled for completion by next year, is expected to add 200 to 250 more jobs.

Wal-Mart looked at several New England sites before settling on Lewiston in 2001. The decision came after the city and state offered $17 million in tax breaks over a 20-year period.

“Wal-Mart is meeting or exceeding the terms of the original agreement,” said Lincoln Jeffers, deputy director of economic development for the city. “It is really a win-win situation.”

The facility is the most highly automated of Wal-Mart’s 34 grocery distribution centers, using new technology to replace manual labor.

Because the technology is proprietary, the company did not invite the public to its grand opening.

“We’re getting a better center,” said Jeffers. “Wal-Mart kept improving the technology and they built a state-of-the-art, model distribution center.”

The city, which has invested about $5 million in infrastructure improvements for the project, stands to gain $883,000 a year in tax revenue.

Under terms of the agreement, Wal-Mart risks a loss of its tax breaks if it fails to show a $45 million investment and provide 350 full-time jobs with an average wage of $12 per hour within three years of its opening.

When completed, the center will be roughly three times the size of the Auburn Mall.