Del Papa set to build in Texas City

After more than a century in Galveston, Del Papa Distributing Co. is ready to begin construction of a new 153,000-square-foot distribution center in Texas City.

Last month officials from Del Papa, which distributes products for as many as 30 companies including Anheuser-Busch, invited officials from Texas City to break ground on the 26-acre tract near Interstate 45 North at Century Boulevard, where the facility is to be constructed.

The $18 million construction project is being funded by bonds issued under a Hurricane Ike recovery program.

Work should be completed in April 2012, company officials said.

In addition to promising a more efficient operation, the planned facility has Del Papa officials seeing green.

"We wanted to do the right thing both environmentally and economically," said Bill Falkenhagen, Del Papa's chief financial officer.

The new structure, which includes 31,000 square feet of office area and 122,000 square feet of warehouse space, was designed to increase energy efficiency and increase the productivity of its 150-plus workers.

Company leaders said the building site puts Del Papa closer to customers and positions it for growth over the next several years.

"In our industry, volume equates to people," company president Larry Del Papa said. "When we grow our volume, it takes more arms and legs to move and handle that volume."

Nick Finan, executive director of management services for Texas City, said his city had been courting Del Papa for nearly two years .

"It will also provide water and sewer to that area," Finan said.