GREENWOOD - FedEx Corp. (NYSE: FDX) has dropped plans for a $259 million small package distribution center in Greenwood. The company cited "projected operational needs" in halting plans for the hub, which was expected to result in up to 455 new jobs. In a statement, the city of Greenwood said it is "certainly disappointed" in the decision, but adds that FedEx's initial announcement led to interest from "a number of other high-profile companies."

The city says it expects strong interest in the "desirable property" that is now available in Greenwood.

In a statement from FedEx, the company said automation and technological enhancements are enabling it to increase use of its existing facilities.It says incentives offered by Greenwood were "very much a positive" in the company's initial plan to bring a hub there, adding the "Indianapolis area remains an important market for FedEx."

The company first announced plans for the 608,000 square-foot facility in October. The city approved a more than $17 million tax abatement for the project. At the time, Greenwood Mayor Mark Myers said FedEx's decision to invest in the city was "all about location and infrastructure." Construction was set to begin this summer.

In December, FedEx announced plans to invest $385 million into new equipment at its hub at Indianapolis International Airport in a move the company says would result in 125 new full-time jobs and 450 new part-time positions by 2026. In January, the company said it would pump $1.5 billion into its Indianapolis hub in the coming year, crediting the U.S. Tax Cuts and Jobs Act.

Statement from the city of Greenwood:

“We’re certainly disappointed in the decision but appreciate FedEx's transparency and collaboration throughout the evaluation process. The silver lining is that the initial decision by FedEx to explore such a large investment in Greenwood has led to interest from a number of other high-profile companies. Pitney Bowes will soon open a large facility nearby, and we anticipate several others will express interest as news spreads that this desirable property is now available.”

Statement from FedEx Ground:

“FedEx Ground is constantly evaluating the capacity needs of its network. Automation and technological enhancements we have made to our network over the last decade have enabled us to continue to increase the utilization of our existing capacity while serving the growing needs of our customers.

Incentives offered by the City of Greenwood were generous and very much a positive for our initial consideration of that location, and we thank Greenwood for its partnership throughout this process. The Indianapolis area remains an important market for FedEx, both for our current operations and as we consider the future needs of our network."