The City of Chicago will move its Fleet and Facility Management headquarters to the city's South Side into a custom facility that's expected to spur economic development in the area and improve department operations, Mayor Rahm Emanuel has announced.

Earlier this year, Fleet and Facility Management was tasked with finding ways to improve operational efficiency. The current shop was found to be underutilized and expensive to operate given its size and construction type. In 2015, operating costs for the facility totaled more than $1 million.

The new facility in the Englewood neighborhood is expected to cost the city $25 million to $30 million to build, according to the Chicago Tribune. The city expects this move to create construction jobs and attract more businesses to the area.

Chicago's Fleet and Facility Management is in charge of more than 10,000 pieces of equipment and vehicles and more than 425 leased and owned facilities. At least 200 existing jobs will be relocated to the new location.