A planned new distribution center for FedEx Ground in South Chattanooga is a $15.5 million project, officials said.
A County Commission committee on Thursday approved a resolution asking for a $750,000 state grant for the project.
Dan Saieed, of the county's economic development department, said the match would be provided by Federal Express and there is no cost.
The grant would cover infrastructure improvements at the site off South Market Street by Chattanooga Creek.
It is the location of a former Wheland Foundry landfill. A Birmingham businessman earlier wanted to reopen it as a landfill site, but met strong opposition and abandoned the proposal.
Officials said Federal Express is in the midst of a $1.8 billion expansion of its North American transportation network.
The site is to be used for a proposed package handling facility and terminal.
The investment includes $1.85 million for the land, $8.65 million for real property improvements and $5 million for material handling equipment.
Federal Express has two existing operations here with 25 fulltime employees, 150 parttime workers and 70 fulltime independent contractors.
The expansion will allow FedEx Ground to add 51 parttime employees and 32 fulltime independent contractors with average pay of $15.56 per hour and $87,772 per year, respectively.