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VOL. 10 | NO. 42 | Saturday, October 14, 2017

Amazon Confirms Plans for $72M Memphis Distribution Center

By Andy Meek

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While Memphis has been working to win the nod from Amazon in the company’s highly publicized decision on where it will put its second headquarters, the city is poised to get a major unrelated investment from the e-commerce giant.

Amazon has confirmed via an application for tax incentives it is considering the development of a distribution facility - the paperwork calls it a “receive center” - at 3292 Holmes Road for which Amazon will invest $72.5 million and create 600 new jobs. The Economic Development Growth Engine board will consider the company's application for a 15-year payment-in-lieu-of-taxes (PILOT) incentive Wednesday, Oct. 18.

EDGE staff projections show the project generating almost $37 million in local tax revenue over the life of the tax freeze and a more than $15 million benefit to Amazon as a result of the PILOT. The average base salary of the new jobs, not including benefits, will be almost $29,000.

Amazon gave a two-sentence description of the project in documentation to support the tax incentive: “Amazon is considering locating a new receive center to support the North America fulfillment network. The facility will collect and repackage products for distribution to fulfillment centers across the country.”

The Daily News first reported Oct. 5 that Amazon was planning the center in Memphis, which at 615,440 square feet puts it on the smaller end of other recently announced Amazon centers. Other Amazon fulfillment centers announced in the last month include a 1 million-square-foot facility in Shelby, Michigan; an 855,000-square-foot fulfillment center in Staten Island, New York; and a 650,000-square-foot facility in Euclid, Ohio. Those are all expected to result in 1,000 to 2,250 new jobs.

Amazon’s investment in the Memphis facility would include $3.7 million to buy the land, more than $46 million in construction costs and $23.3 million invested in manufacturing machinery. This would be the company’s first fulfillment center in Memphis, though it operates several others in Tennessee, including ones in Chattanooga, Charleston, Lebanon, Murfreesboro and Nashville.

Amazon - which is a publicly traded company that reported more than $135 billion in revenue in 2016 - currently has more than 50 fulfillment centers, 23 sorting centers and more than 90,000 full-time employees across the U.S.

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