What has been rumored for months is now official: Webvan, one of the largest on-line sellers of consumer goods in the nation, has announced plans to move its East Coast shipping headquarters to North Bergen. A multi-million dollar deal with a developer will enable the company, which says it delivers goods within 30 minutes, to begin operating at full speed by the beginning of next year. According to township administrator Joseph Auriemma, the deal between Webvan and the township was made within the last few weeks and company has already begun to make improvements on its new home, located at the foot of 91st Street. The building, owned by Hartz Mountain Industries, was secured in a lease deal between Hartz and Webvan. Webvan has agreed to make nearly $40 million in improvements to the facility, which will serve as the main eastern site for the company’s shipment of consumer goods, such as beer, wine and spirits, drug store and baby products and a full assortment of groceries at discounted prices. Webvan, based in San Francisco, calls itself “the world’s first full-service online grocery and drug store.” Located at www.Webvan.com, its site enables on-line customers to purchase the goods over the Internet and guarantees delivery within 30 minutes, if so desired. As part of the deal, the township has agreed to contribute over $1 million in Urban Enterprise Zone funds to help Webvan establish its new home. Nearly $300,000 of the money has been allocated to make improvements to 91st Street so that the area no longer floods during heavy rainfalls. “That’s a move that benefits everyone, not just Webvan,” Auriemma said. The other $700,000 of UEZ funds will go to help defray the cost of the improvements Webvan plans to make to the facility. “Considering that Webvan will spend $17.5 million to upgrade the infrastructure of the building and another $17 million into computers and technology, our $700,000 contribution is minimal,” Auriemma said. “It’s to the township’s advantage to get this project completed.” Auriemma said that the deal would mean a lot of positive things for the township. “First, it’s a cutting-edge technological company that will utilize North Bergen as its headquarters,” he said. “We’re happy with that because it proves that we’re not just catering to the old-time industrial companies. We can also attract the companies that are technologically advanced and it insures a relationship with one of the premier Internet-based companies.” Auriemma added, “But it also will mean more jobs for the township. We project that there will be 500 to 700 new jobs brought in by Webvan over the next two years.” Auriemma also said that bringing in a high-profiled company would help the township’s tax base. “Since Webvan has committed to putting a major upgrade of the building, it will enable the value of the building to increase,” he said. “That means it will eventually help the tax flow.” Auriemma said that every meeting he has conducted with the Webvan representatives has been positive. “They were extremely anxious to get here and get started,” he said. “So we’re going to put the improvements for 91st Street out to bids soon and hopefully will have the street finished by May. I know that Webvan is already making improvements and they hope to be operational by the end of this year and in full operation by 2001.” Auriemma added, “Every contact I’ve had with the Webvan people, from their consultants to their facility people, the real estate people and the legal department has been nothing but accommodating. They’ve been thankful to us that we’ve been able to move it along as quick as possible.”
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