Business & Real Estate

McKesson picks Roseville for distribution facility that will employ 166

An affiliate of San Francisco-based health care giant McKesson Corp. has chosen Roseville as the future site of 316,100-square-foot warehouse distribution facility, which is expected to employ 166.

The decision of McKesson Medical-Surgical to build the facility at 7701 Foothills Blvd. – across the street from the Hewlett-Packard campus – was announced Tuesday as part of a joint recruiting effort by the Greater Sacramento Economic Council, the City of Roseville and the Newport Beach-based Panattoni Development Co.

McKesson expects to begin hiring for the facility this fall, and the site is expected to be operating in mid-2018.

“We are glad to see McKesson’s investment into Roseville, one of our flagship communities. Additionally, this is another win for our national site-selection program, which has our region building a national brand,” said Barry Broome, president and CEO of the Sacramento council.

Broome noted that the process to bring McKesson to Roseville dates back a little more than a year, and the local city was in competition with other locales nationwide.

McKesson Medical-Surgical operates two smaller distribution centers in the Sacramento area, and those will be consolidated into the new facility, officials said. McKesson Medical-Surgical delivers medical supplies and pharmaceuticals to health care providers through a national distribution network.

For its part, the city of Roseville said it completed the permitting process in just 143 days. That included entitlements, environmental review, plan review and permitting.

“For a project of this scale, that’s a lightning-fast turnaround in the development world,” said Tim Schaedler, Northern California partner for Panattoni.

“We’re pleased to grow our presence in Northern California,” said Brad Hilton, senior vice president, customer experience, for McKesson Medical-Surgical. “Locating in Roseville provides greater access to our customers and key markets and enables the expansion of our private fleet operations in the region. It also creates an opportunity for us to continue to invest and add to our workforce in a region where we’ve operated for many years.”

“Health care is Roseville’s No. 1 industry sector, and we’re thrilled to welcome McKesson to our region,” Roseville Mayor Susan Rohan said in a statement.

Broome noted that McKesson used professional consultants to evaluate “talent, cost and time” of the region and analyze the area’s overall market.

With the favorable decision, Broome said the area can likely look forward to more development.

“It shows what this region can do versus other regions,” said Broome, who added that the economic council’s investments in programs designed to lure key industries to the Sacramento region is paying off.

Mark Glover: 916-321-1184, @markhglover