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CHICAGO (AP) _ Whole Foods plans to build a new distribution center in Chicago’s Pullman neighborhood to replace one now located in Munster, Indiana.

Chicago Mayor Rahm Emanuel and the upscale grocery chain announced the plans Thursday, citing the Pullman neighborhood’s skilled workforce and proximity to interstate highway routes. Two of the chain’s suppliers _ Method and Gotham Greens _ are located in Pullman.

The center will provide 150 jobs and will serve the chain’s stores in the Midwest and Eastern Canada. Chicago’s City Council will be asked to consider approximately $7.4 million in tax increment financing assistance for eligible development costs, such as site preparationwork.

Emanuel praised Whole Foods for investing in Chicago’s South Side. The chain plans to open a store in Englewood, another South Side neighborhood, later this year.