The Norfolk, NE-based cooperative, which has two warehouses inNebraska and Elwood, KS, held its groundbreaking recently for thenew Wisconsin facility. The property should be complete by spring2009, says a company spokeswoman. Rising transportation costs andother concerns made it impractical to try to serve the northMidwest region out of the existing centers, she says."Logistically, when you look at the distance we had to serve ourmembers in this region, it was something we needed to do,especially to accommodate any growth in these areas," she tellsGlobeSt.com. She says she believes the cooperative will own thefacility instead of leasing.

The company chose the business park, developed by Chicago-basedFirst Industrial Realty Trust, because of its high-profilelocation, said company officials. "(Kenosha) has great populationgrowth, a strong business climate and convenient location along theI-94 corridor from Milwaukee to Chicago," said the cooperativechairman Marc King in a statement.

The firm will receive an $800,000 loan and a $400,000 grant fromthe Department of Commerce for capital investment and training atthe new facility. In return, the cooperative has promised to create450 jobs at the center. "Affiliated Foods represents the future ofsmall business – connecting business owners to share resources andtools to compete with large retailers," said Gov. Jim Doyle in aseparate statement.