The city of Hermiston breaks ground July 7 on work to extend utilities to prepare the South Hermiston Industrial Park, known as SHIP, for future tenants.

At full buildout, SHIP will feature 16 parcels ranging from 1.5 to 20 acres. It is expected to attract up to $70 million in private investment with future tenants employing up to 250 people.

It will offer easy-to-develop parcels to smaller, light industrial businesses that serve the Hermiston area’s large agriculture and industrial operations.

“These new shovel-ready lots will make it much easier for small, light industrial operations to set up,” said Mark Morgan, assistant city manager, in a press release announcing the project.

The $2.5 million utility project includes extending roads, water, sewer and power service to the park, which is west of Highway 395 near the Walmart Distribution Center.

Work coincides with construction of the Meyer Distributing warehouse. The private 179,000-square-foot auto parts distribution center will anchor SHIP and is expected to open in the fall with 70 full-time employees. Indiana-based Meyer Distributing is a nationwide specialty auto parts distribution and logistics firm.

Funding  for SHIP includes a $1.5 million grant from the U.S. Economic Development Administration, $1.2 million from a Local Improvement District consisting of adjoining property owners, $250,000 from the city of Hermiston and $50,000 from Umatilla County.

The groundbreaking will be held at 12:15 p.m. July 7 on East Penny Avenue, off Kelli Boulevard.

The SHIP utility project includes:

• Paving streets and installing water and sewer lines to Southeast 10th Street between Highway 395 and East Penny Avenue.
• Paving and installing water and sewer lines to a road spur that will extend from Southeast 10th into Port of Umatilla property.
• Completing paving on Southeast Campbell Drive to East Penny.
• Installing underground power through Port of Umatilla property to connect with existing power systems on Highway 395.