Borders closed their doors last year and left hundreds of people without jobs.
"That was devastating, not just because of the company itself leaving, but the jobs that were lost. You're looking at 250 to 300 jobs that were lost immediately when they closed the doors," Mayor Sienna Mosley said.
Mosley told Nashville's News 2 she believes the announcement will benefit the city dramatically.
"This is huge in the fact that they are going to look at the people that worked for Borders and they're going to have the opportunity to go to work for Saks Fifth Avenue as well," she said.
Officials for Saks said they expect the new distribution center to be fully operational by late summer.
"They're going in, remodeling that and we're looking at 250 jobs when they're running at full capacity," Mosley said.
Information about when job seekers can apply for the upcoming jobs were not immediately released.