Walgreen Co., the nation’s largest drugstore chain, plans to construct its new northeast distribution facility in Windsor, Conn. The company will be investing over $175 million in the 700,000 square foot facility that will create up to 550 jobs. It is anticipated that 30 percent of these new hires will be workers with disabilities.

“It is critical that we continue to attract major corporations like the Walgreen Company to invest in our state and our workforce,” said Connecticut Gov. Jodi Rell. “Walgreens had many options as to where to build their new distribution facility, but in the end they chose Connecticut because of our skilled work force, ideal location within New England and deep commitment at the state and local levels of government to make this project a reality.

The Connecticut Department of Economic and Community Development, in coordination with Town of Windsor officials, have been working with the Walgreen Co. on the proposal for several months.

The project is being supported through an estimated $5 million in proposed incentives from the Department of Economic and Community Development: a $1.5 million loan to the company for machinery and equipment; a $2 million grant to the town of Windsor to support its business assistance program; and a $1.5 million grant to create a new customized training program. The funding requires approval from the State Bond Commission.

In addition, it is proposed that the Connecticut Development Authority (CDA) provide a sales tax exemption on materials used in the construction process. This assistance is still subject to approval by the CDA board of directors.

More than 200 employees are expected to be hired initially for the center, and employment could grow to as many as 550 as the facility serves more stores. When it opens in 2008, the center is expected to serve about 275 stores in New England and New York. Walgreens is expected to begin site work in late spring on the 130-acre site located within the planned New England Tradeport industrial park.