Wonder which company could this Project Rex be? Amazon?
http://www.bizjournals.com/jacksonville/news/2016/04/12/new-project-rex-to-bring-1-500-jobs-200-million-in.html
Here are a few more clues:
Times-Union:
QuoteCity officials say the company, which says it employs 200,000 people worldwide and has more than 20 years of experience in retail and e-commerce markets, plans to open a "state-of-the-art fulfillment center." Jacksonville is one of several cities the company is considering for such a facility.
Amazon was founded in 1994, 22 years ago.Per Statista.com:
In 2015, the American multinational e-commerce company, headquartered in Seattle, Washington, employed 230,800 full- and part-time employees.Times Union:
QuoteJacksonville is competing for an unnamed company that says it plans to invest $200 million in a project just south of Jacksonville International Airport that would create 1,500 jobs by the end of 2019.
Per Wikipedia article on Amazon:
QuoteFulfillment centers are located in the following cities, often near airports. These centers also provide warehousing and order-fulfillment for third-party sellers.
and
QuoteWarehouses are large and each has hundreds of employees. Employees are responsible for four basic tasks: unpacking and inspecting incoming goods; placing goods in storage and recording their location; picking goods from their computer recorded locations to make up an individual shipment; and shipping.
Amazon clearly fits the bill :)! Maybe they use the airport for their drone delivery air force 8)
Makes sense. Figured they'd eventually give us a look though I imagine it's far from a done deal.
It could be anyone. Amazon's new hubs in Central Florida aren't near any significant airports. The one in Lakeland is a few miles from their airport but there's no real cargo activity taking place there.
Maybe a Jax facility plays more than one role. Such as a fulfillment center and a distribution/import/export hub for other fulfillment centers. On that basis, the airport location makes more sense.
A $200 million dollar investment in a facility like this could go up to 2 million square feet or so, depending on how much goes into technology and furnishings. That would seem far larger than what might be needed for a fulfillment facility for North Florida/South Georgia. The 1,500 jobs also seems high for a fulfillment center that is typically highly automated. Also, 500 jobs at $50,000+ implies some higher level activities may be involved.
We shall see.
Quote from: thelakelander on April 12, 2016, 04:59:21 PM
It could be anyone.
What other 200,000-employee e-commerce businesses do you think are the possibilities?
It might be Amazon, but their model is less about airports. With prime for example, they want to be within 2 days ground of a customer. If they had to air ship everything, then it wouldn't work.
Amazon recently expanded the cities where they're offering same-day delivery. Looking over the list (http://www.amazon.com/b?ie=UTF8&node=8729023011), I could see Jacksonville fitting into the next round where it's available.
QuoteFREE Same-Day Delivery is now in Charlotte, Cincinnati, Fresno, Louisville, Milwaukee, Nashville, Central New Jersey, Raleigh, Richmond, Sacramento, Stockton, and Tucson.
Quote from: jaxlongtimer on April 12, 2016, 07:41:34 PM
Maybe a Jax facility plays more than one role. Such as a fulfillment center and a distribution/import/export hub for other fulfillment centers. On that basis, the airport location makes more sense.
A $200 million dollar investment in a facility like this could go up to 2 million square feet or so, depending on how much goes into technology and furnishings. That would seem far larger than what might be needed for a fulfillment facility for North Florida/South Georgia. The 1,500 jobs also seems high for a fulfillment center that is typically highly automated. Also, 500 jobs at $50,000+ implies some higher level activities may be involved.
We shall see.
Hmmmmmm. If it is Amazon, it sounds like it might be some sort of next-generation fulfillment center and blow away what they put down in West Central Florida.
Wouldn't that be sweet?
JBJ has a few more clues that it could be Amazon (http://www.bizjournals.com/jacksonville/news/2016/04/13/project-rex-is-likely-amazon-and-heres-where-its.html?ana=twt):
QuoteTo make the site work, a 2,000-foot-long section of Pecan Park Road would need to be realigned, during which it would be turned into a four-lane road, according to details on the project included with the legislation. Other road improvements would include installing a traffic signal on Pecan Park Road, relocating a water main and possibly adding a signal at the I-295 ramp.
The client for that work, according to the documents, would be Seefried Industrial Properties. That company's website shows it has built Amazon sites in Tennessee and Virginia.
Amazon has four fulfillment centers in Florida, but the company has been expanding its network as it looks to provide same-day delivery in more places. Last week, Amazon said it was expanding same-day delivery to 11 cities, all of which have distribution centers nearby.
BizJournal is reporting that it's likely Amazon:
http://www.bizjournals.com/jacksonville/news/2016/04/13/project-rex-is-likely-amazon-and-heres-where-its.html
Here is a thought... if you assume that Amazon's fulfillment function displaces shopping at brick and mortar stores and that it has the ability to more rapidly turn inventory than a brick and mortar store due to its supposedly more efficient business model, even if some of its fulfillment displaces some existing e-commerce, one would have to conclude a potential 1.6 million square foot facility with near- or same-day delivery capabilities could reduce demand for retail brick and mortar real estate in the region by a similar or greater 1.6 million square feet.
Has anyone measured the impact of such centers in other regions on the retail real estate market?
I didn't realize Amazon ended opening four fulfillment centers in Florida back in 2014. I guess it's only logical to expand in remaining areas where they don't have decent coverage. The two big centers Jax lost the initial 2014 race to were built in Ruskin (suburban Tampa) and Lakeland.
Ruskin - 1.1 million sf (9/2014) - 2,500 employees
http://www.tampabay.com/news/business/retail/have-a-look-inside-the-1-million-square-foot-amazon-fulfillment-center-in/2271254
Lakeland - 1 million sf (12/2014) - 800 employees
http://blog.taxjar.com/amazon-fulfillment-center-lakeland-fl/
They also opened two smaller "sortation" centers in Davenport (Polk County) and Miami.
Davenport 400,000 sf (2014) - 100 employees
http://www.theledger.com/article/20141128/newschief/141129234
Miami 335,841 sf (10/2014) - 300 employees
http://www.miamiherald.com/news/business/article4125518.html
Based on the description, what's proposed sounds moreso like the Ruskin and Lakeland distribution centers. Here's a video of the Ruskin location's recent open house:
http://video.tampabay.com/?ndn.trackingGroup=90964&ndn.siteSection=tbtimes&ndn.videoId=30554907&freewheel=90964&sitesection=tbtimes&vid=30554907
As far as them impacting traditional retail locally, I think it's too early to tell. Amazon has three centers within close proximity of the I-4 corridor and retailers and shopping centers down there still seem to be humming along.
What would be interesting is if they started offering the one day turnaround delivery in jax because of this.
Quote from: Steve on April 12, 2016, 10:52:30 PM
It might be Amazon, but their model is less about airports. With prime for example, they want to be within 2 days ground of a customer. If they had to air ship everything, then it wouldn't work.
Airports are becoming more important to them as they become their own shipper. They recently leased a fleet of Boeing aircraft and have purchased significant stakes in European delivery companies.
http://www.bloomberg.com/news/articles/2016-03-09/amazon-to-lease-boeing-767s-from-air-transport-atsg-shares-soar (http://www.bloomberg.com/news/articles/2016-03-09/amazon-to-lease-boeing-767s-from-air-transport-atsg-shares-soar)
Quote from: thelakelander on April 13, 2016, 04:00:33 PM
I didn't realize Amazon ended opening four fulfillment centers in Florida back in 2014. I guess it's only logical to expand in remaining areas where they don't have decent coverage. The two big centers Jax lost the initial 2014 race to were built in Ruskin (suburban Tampa) and Lakeland.
Ruskin - 1.1 million sf (9/2014) - 2,500 employees
http://www.tampabay.com/news/business/retail/have-a-look-inside-the-1-million-square-foot-amazon-fulfillment-center-in/2271254
Lakeland - 1 million sf (12/2014) - 800 employees
http://blog.taxjar.com/amazon-fulfillment-center-lakeland-fl/
They also opened two smaller "sortation" centers in Davenport (Polk County) and Miami.
Davenport 400,000 sf (2014) - 100 employees
http://www.theledger.com/article/20141128/newschief/141129234
Miami 335,841 sf (10/2014) - 300 employees
http://www.miamiherald.com/news/business/article4125518.html
Based on the description, what's proposed sounds moreso like the Ruskin and Lakeland distribution centers. Here's a video of the Ruskin location's recent open house:
http://video.tampabay.com/?ndn.trackingGroup=90964&ndn.siteSection=tbtimes&ndn.videoId=30554907&freewheel=90964&sitesection=tbtimes&vid=30554907
As far as them impacting traditional retail locally, I think it's too early to tell. Amazon has three centers within close proximity of the I-4 corridor and retailers and shopping centers down there still seem to be humming along.
Walmart and Target have seen problems of recent who would be Amazon's direct competition in many ways.
^They still seem to be expanding in the Bay area but what is interesting is Walmart's response to Amazon. Walmart is now building their own e-commerce fulfillment centers. A $200 million, two million square foot Walmart fulfillment center is currently under construction immediately next door to Amazon's Davenport center.
http://www.flgov.com/2015/09/17/governor-scott-and-walmart-announce-new-e-commerce-fulfillment-centers-more-than-625-new-jobs-in-polk-county/
Quote from: codemonkey on April 13, 2016, 04:32:51 PM
Quote from: Steve on April 12, 2016, 10:52:30 PM
It might be Amazon, but their model is less about airports. With prime for example, they want to be within 2 days ground of a customer. If they had to air ship everything, then it wouldn't work.
Airports are becoming more important to them as they become their own shipper. They recently leased a fleet of Boeing aircraft and have purchased significant stakes in European delivery companies.
http://www.bloomberg.com/news/articles/2016-03-09/amazon-to-lease-boeing-767s-from-air-transport-atsg-shares-soar (http://www.bloomberg.com/news/articles/2016-03-09/amazon-to-lease-boeing-767s-from-air-transport-atsg-shares-soar)
When you run the flight, it's less important. The reason some fulfillment companies locate near airports is to process as long as possible and still make an evening sort by a carrier. When you're the carrier, while still important, it's less important.
In addition, if you're doing it all you don't have to be by the main airport. They could build next to Cecil and get their own benefit.
One day service article:
QuotePope said don't expect the same-day service to be the "shining star" of Jacksonville. When Baltimore, about twice the size of Jacksonville, got its same-day service, Pope said the offer would come up in casual conversation, but it was just another benefit of Amazon.
"It's more likely users will just see one day that they have the service available," he said.
http://www.bizjournals.com/jacksonville/news/2016/04/14/if-jacksonville-gets-amazon-when-do-we-get-same.html?ana=RSS%26s=article_search
The proposed site plan. Pretty much looks like the footprints of the Ruskin and Lakeland distribution centers.
(http://www.jaxdailyrecord.com/storyimages/1460646005SitePlan.jpg)
More: http://www.jaxdailyrecord.com/showstory.php?Story_id=547386
And the land is already under contract.
http://www.bizjournals.com/tampabay/news/2016/04/18/amazon-prepping-to-launch-prime-now-in-tampa-area.html?ana=fbk
Prime Now may be coming to Jax as well. It may be the reason they are making this move in Jax now. 8)
http://jaxdailyrecord.com/showstory.php?Story_id=547409 (http://jaxdailyrecord.com/showstory.php?Story_id=547409)
Looks like everyone from the city to JTA is bending over backwards for "Rex". I guess when you're "that company" the pension embargo doesn't hold water and forget the 6 month old promise to to "revamp" the skyway - "we gotta get the Flyer out there and give Rex "dedicated public transportation".
Quote from: marty904 on April 19, 2016, 08:56:11 PM
http://jaxdailyrecord.com/showstory.php?Story_id=547409 (http://jaxdailyrecord.com/showstory.php?Story_id=547409)
Looks like everyone from the city to JTA is bending over backwards for "Rex". I guess when you're "that company" the pension embargo doesn't hold water and forget the 6 month old promise to to "revamp" the skyway - "we gotta get the Flyer out there and give Rex "dedicated public transportation".
Wait until "that" company wants an HRO!
Quote from: marty904 on April 19, 2016, 08:56:11 PM
http://jaxdailyrecord.com/showstory.php?Story_id=547409 (http://jaxdailyrecord.com/showstory.php?Story_id=547409)
"we gotta get the Flyer out there and give Rex "dedicated public transportation".
to be fair, the Flyer needs to go to the airport....so I have no problem with the statement
Apparently Amazon ran into a little problem in Boston recently when their data science didn't match up with local political science.
Per Seattle Times:
Criticism alters Amazon's service
Facing backlash from local elected officials, Amazon.com says it will soon launch same-day delivery service for Prime members in a predominantly African-American Boston neighborhood that was excluded while it served surrounding areas.
The move came after Boston Mayor Martin Walsh last week lambasted the company for making the Roxbury neighborhood "a hole right in the heart of our city" in terms of same-day delivery.
The controversy was sparked by a Bloomberg News investigation that highlighted how Amazon's same-day delivery service was unavailable in some minority neighborhoods in six big cities.
In Boston, Roxbury stood out because it's fairly central, right in the middle of areas where same-day delivery happened.
Amazon contended that as it deployed the service it focused on places with a high density of Prime members and considered other data such as distance from fulfillment centers. The company also says it factors in whether the logistics providers it contracts with are able to deliver packages up to 9 p.m. "every single day, even Sunday."
Amazon said race plays no role in setting service boundaries.
In a statement released by Boston City Hall on Tuesday, the mayor complained that Amazon executives were "not willing to change their policy."
"We understand that the people who run Amazon don't live here and might not understand our great neighborhoods, but this is an egregious mistake that must be changed," the mayor said.
After the mayor's statements, Amazon said it is "actively working with our local carrier to enable service to the Roxbury neighborhood in coming weeks."
"We are always looking to expand the benefits our Prime members receive and that's exactly what we're doing," Amazon said.
Elected officials in New York City and Chicago, meanwhile, have called for state and federal investigations examining how the company determines which neighborhoods are eligible for quick delivery of goods.
Quote from: marty904 on April 19, 2016, 08:56:11 PM
http://jaxdailyrecord.com/showstory.php?Story_id=547409 (http://jaxdailyrecord.com/showstory.php?Story_id=547409)
Looks like everyone from the city to JTA is bending over backwards for "Rex". I guess when you're "that company" the pension embargo doesn't hold water and forget the 6 month old promise to to "revamp" the skyway - "we gotta get the Flyer out there and give Rex "dedicated public transportation".
Does improving First Coast Flyer prevent work on the Skyway? I'll say this, had Mike Blaylock still been the CEO I might have agreed with you. Ford on the other hand seems to actually be able to lay out a vision and direct his team to execute it. IMO, JTA was a disaster when he took over, and he's done quite a bit since he's been there. It wasn't going to be an overnight turnaround - they didn't become a mess overnight.
Hmmmmm . . . more speculation today that site could have more than double the square footage of that found in west central Florida:
http://www.jaxdailyrecord.com/showstory.php?Story_id=547569 (http://www.jaxdailyrecord.com/showstory.php?Story_id=547569)
Very interesting.
Are you sure? When I read the article, I get the impression that it will be pretty similar to their latest distribution centers. Thus, on some level, I'd assume their interiors have some height as well.
After doing a quick google search, my assumption may be correct. Here's the interior of a few of their other distribution centers. All appear to have some height for vertical storage of goods:
(http://mediad.publicbroadcasting.net/p/wlrn/files/styles/medium/public/201310/1561.jpg)
(https://media.glassdoor.com/l/c9/2d/06/7e/amazon-warehouse.jpg)
(http://media.bizj.us/view/img/1262401/amazon-uk-fulfillment-center-warehouse-bloomberg*750.jpg)
No, I'm definitely not sure. I'm wondering if the speculation in the Daily Record is more than mere speculation and is substantive. Karen Brune Mathis isn't some rookie reporter. That speculation is the lede of her article.
QuoteThe center's footprint is 855,000 square feet. However, the larger size for the total enclosed space indicates the structure is several stories high.
Reading the quote above, I don't think she ever made a speculation that it would be double the square footage of other centers. Seems like she's describing what's shown in the interior images above. If the others have a similar footprint (which is true) and a similar height (they appear to have a few levels of vertical storage), they probably are of similar overall square footage, depending on the calculation used.
Hmmmm. You may be right, Ennis, although I don't think so . . . but:
QuoteCould the potential Amazon.com Inc. fulfillment center on 180 acres in North Jacksonville contain almost 2.4 million square feet of space?
According to a city Mobility Fee Calculation Certificate, yes.
That's not speculation it could be more than double the square footage, Ennis? Really? As opposed to the proposed NorthEast Florida facility, this is how those WestCentral Florida facilities were described:
QuoteThe Ruskin facility will employ more than 1,000 workers, most of whom will pick, pack and ship small items such as books, electronics and consumer goods. The Lakeland workforce will number in the hundreds, Lindsey said. They will focus on shipping large items such as kayaks and televisions.
http://www.bizjournals.com/tampabay/news/2014/05/14/amazon-centers-in-ruskin-and-lakeland-reach.html (http://www.bizjournals.com/tampabay/news/2014/05/14/amazon-centers-in-ruskin-and-lakeland-reach.html)
Is this a next-generation, combination facility? That's what I'm curious about. Was that article Karen Brune Mathis' way of saying
yes, Jacksonville, yes it is. After all, this is how the BizJournals described Ruskin:
QuoteThe project calls for a $200 million capital investment, with 1,000 permanent jobs and as many as 1,000 additional jobs during peak season.
http://www.bizjournals.com/tampabay/news/2013/10/10/sources-amazon-land-deal-in-ruskin-is.html (http://www.bizjournals.com/tampabay/news/2013/10/10/sources-amazon-land-deal-in-ruskin-is.html)
But KBM has told us, "The center would hire 1,500 people by year-end 2019, but peak seasonal employment would reach 3,500 workers among two shifts."
Sounds like a next-generation combo to me. Still premature analysis for sure, and she may be leaping to an unwarranted supposition, but I'm going to go ahead and score this one for Jacksonville.
^I don't think she's speculating that it will be double the size of everything else they've built. I think you are. The footprint is slightly smaller than the Ruskin center. However, nothing in the article indicates what other centers have applied for, in terms of concurrency, mobility fees, etc. Without that extra level of background research, for all we know, all of the recently opened distribution centers are probably the exact same thing, with slight modifications.
For example, the 2010 quotes you pulled mention that the Ruskin center will employ 1,000. A March 2016 article states that center's employment is up to 2,500 now. It also claims the center is 4 million square feet...
QuoteAfter finishing construction on new sorters, conveyors and other equipment at its Ruskin Fulfillment Center, Amazon ushered in Gov. Rick Scott and other local dignitaries for a tour Wednesday.
The company, which started out with 1,000 employees in 2014 and now employs 2,500 at the Ruskin location, showed off the precise and very detailed robotic and manual system it uses to launch printer paper, electronic tablets, paper towels and upscale purses to all points in Florida and beyond.
Company officials also announced it is building a new training center on site where employees can take college courses on their off time.
QuoteBrian Owens, regional director of fulfillment centers for Amazon, talked of the relationship between technology and humans in the 4 million square-foot Ruskin warehouse that move millions of inventory items each year. The system allows every kind of company from Florida mom-and-pop operations to huge retail centers to get products out quickly, he said.
"There are not a lot of places where we can say we added 2,500 jobs in a year and a half," the governor said. "This state is on a roll. It's great that Amazon is not only creating jobs, but giving back to the community" in which its employees live.
Full article: http://www.tbo.com/news/business/amazon-provides-tour-of-ruskin-distribution-center-for-scott-local-officials-20160330/
Btw, if you click on the link, there's a video inside of the Ruskin facility where they explain how things work at that advanced technology complex. Storage appears to be multilevel in that facility as well. At the end of the day, this is a warehouse and one that they're placing in every region where they want same day delivery service. Based on the site plan and numbers tossed around so far, I seriously doubt whatever shows up locally will be significantly different than what they've been putting up recently across the country.
No, it's definitely double what they originally built:
http://www.tampabay.com/news/business/economicdevelopment/amazon-to-expand-ruskin-facility-creating-hundreds-of-jobs/2228333 (http://www.tampabay.com/news/business/economicdevelopment/amazon-to-expand-ruskin-facility-creating-hundreds-of-jobs/2228333)
Your latest article was after the expansion. Still, my original question is probably a moot point now. Unless . . . they've built in an expectation to expand in Jax, too, depending upon initial demand.
More than likely it will simply mimic the Ruskin facility.
Sounds like the building footprint remained the same but the amount of what they could store, increased by vertical storage expansion inside the facility.
QuoteAmazon finished construction on the 1.1 million-square-foot fulfillment center in September and hired more than 1,000 workers to run it. The facility, at 3350 Laurel Ridge Ave., near Interstate 75 and State Road 674, has shipped millions of packages since.
But the company left room inside the cavernous $200 million building — it's 10 times the size of the average Home Depot — to one day expand its ability to store and ship even more stuff to customers across Florida and the world.
The Seattle company decided the time for that expansion has come, Lindsey said. Hundreds of temporary construction workers will also be hired and work has already started inside the warehouse.
Amazon is adding more computer systems, conveyor belts, robotic mechanisms and storage facilities. But the company would not say when it expects to finish construction, when it will start adding full-time workers or how many it will hire.
"What we're doing now is adding additional inventory space to increase the amount of items we're able to store in the fulfillment center," Lindsey said. "That means we'll be able to increase our selection in the region, which will allow us to offer the super-fast shipping speed that Amazon customers expect from us."
Yeah, this sounds pretty similar to what's being proposed in Jax.
It's official. It is Amazon.
http://www.bizjournals.com/jacksonville/news/2016/07/27/its-official-amazon-bringing-1-500-job-fulfillment.html?ana=twt
Quote"This is the largest single jobs announcement in our city's history — with the multi-national company planning to create 1,500 jobs here," Jax Chamber President Daniel Davis said in a statement. "It is great news for our entire community and another example of what we can accomplish if we are working together with the common goal of growing jobs."
Well, 1500 jobs by 2019.....at least I will be able to get my packages delivered by drone much easier now.
Good news for Jacksonville for sure.
Quote from: Josh on July 27, 2016, 09:38:04 AM
It's official. It is Amazon.
http://www.bizjournals.com/jacksonville/news/2016/07/27/its-official-amazon-bringing-1-500-job-fulfillment.html?ana=twt
Worst-kept secret in real estate ;) Thanks though, Josh, no need to hold my breath now!
I wonder if they will start offering the new Amazon delivery and grocery options here?
^I'm guessing yes. It usually takes them 9-10 months to put up one of these and then usually another 2-3 month to have it running optimally, depending on automation level (it's not a question of whether or not it's automated, but to what level). My guess is next fall.
Citi just announced plans to bring another 800 jobs to Jacksonville.
http://jacksonville.com/jobs/local-jobs-news/2016-07-27/story/citi-hire-800-here
Pretty good day for the city.
Pardon my ignorance, but is there any particular reason why the city is forking out $13.4 million for this? Amazon's sales are expected to be $29.3 billion this QUARTER. The City of Jacksonville is (allegedly) broke. If Amazon has a need for a distribution center in Jacksonville, they will build one, regardless of tax incentive. So, other than corporate welfare and a resume-enhancer for politicians, what is the purpose of giving Amazon money the city does not have?
Quote from: mtraininjax on July 27, 2016, 10:46:29 AM
Quote"This is the largest single jobs announcement in our city's history — with the multi-national company planning to create 1,500 jobs here," Jax Chamber President Daniel Davis said in a statement. "It is great news for our entire community and another example of what we can accomplish if we are working together with the common goal of growing jobs."
Well, 1500 jobs by 2019.....at least I will be able to get my packages delivered by drone much easier now.
Good news for Jacksonville for sure.
Way too close to the airport for drones unfortunately.
Quote from: bast553 on July 27, 2016, 02:36:10 PM
Pardon my ignorance, but is there any particular reason why the city is forking out $13.4 million for this? Amazon's sales are expected to be $29.3 billion this QUARTER. The City of Jacksonville is (allegedly) broke. If Amazon has a need for a distribution center in Jacksonville, they will build one, regardless of tax incentive. So, other than corporate welfare and a resume-enhancer for politicians, what is the purpose of giving Amazon money the city does not have?
I wouldn't think of it as the city "forking out" $13.4 million from its struggling coffers. The money will come in the form of tax refunds and through the city's Recaptured Enhanced Value Grant program, which basically (and temporarily) reduces taxes that result from the massive property value spikes caused by Amazon's investment in the area. In all, the $13.4 million in incentives will be parsed out over 12 years. Plus some roadway improvements.
In return, Amazon brings $200 million in capital investment to Jacksonville, 2.4 million sf in bleeding edge warehouse space, and 1,500 new jobs totaling over $50 million in annual salary.
I understand the push-back against incentives, but zero chance this doesn't ROI for the city in very short time.
Quote from: KenFSU on July 27, 2016, 02:27:30 PM
Citi just announced plans to bring another 800 jobs to Jacksonville.
http://jacksonville.com/jobs/local-jobs-news/2016-07-27/story/citi-hire-800-here
Pretty good day for the city.
Unfortunately, I think most of these are going to be low-paying call center jobs. But better than nothing I guess.
Quote from: KenFSU on July 27, 2016, 02:57:09 PM
Quote from: bast553 on July 27, 2016, 02:36:10 PM
Pardon my ignorance, but is there any particular reason why the city is forking out $13.4 million for this? Amazon's sales are expected to be $29.3 billion this QUARTER. The City of Jacksonville is (allegedly) broke. If Amazon has a need for a distribution center in Jacksonville, they will build one, regardless of tax incentive. So, other than corporate welfare and a resume-enhancer for politicians, what is the purpose of giving Amazon money the city does not have?
I wouldn't think of it as the city "forking out" $13.4 million from its struggling coffers. The money will come in the form of tax refunds and through the city's Recaptured Enhanced Value Grant program, which basically (and temporarily) reduces taxes that result from the massive property value spikes caused by Amazon's investment in the area. In all, the $13.4 million in incentives will be parsed out over 12 years. Plus some roadway improvements.
In return, Amazon brings $200 million in capital investment to Jacksonville, 2.4 million sf in bleeding edge warehouse space, and 1,500 new jobs totaling over $50 million in annual salary.
I understand the push-back against incentives, but zero chance this doesn't ROI for the city in very short time.
Okay, all of that considered, what is the investment given to small businesses that open in Jacksonville?
If Amazon was a small business - "Bob's Drones" - the City sends him a welcome card with a tax bill. If a person moves to Jacksonville, they get a Welcome to Jacksonville tax, whether that tax be direct property tax or indirect through rent. It seems that this deal was made as most deals are made, based on the hypothetical future value of the property, and I would like to know what is in it for the city other than hypothetical ROI.
I am not against deals like this when they are needed to compete. If this were a Boeing plant, for example, that could go anywhere, my mind would be more open to this idea, though I would still remain skeptical. My major problem is that Amazon has to build a distribution center here to distribute their crap to a massive market in Jacksonville. They would eventually build the center here, regardless of whether they got a dime. They couldn't get a deal like this in Nassau County, and it makes no sense logistically to build in Clay or St. Johns.
The only thing this deal does is move this project three months closer to completion, if that, because it was inevitable. On the other hand, the departmental expenses of the city are up 4.5% this year, almost all attributable to the Office of the Sheriff, Fire and Rescue, and Public Works. The mayor, who I assume is ideologically opposed to tax increases, wants a tax increase. (Yes, even a 1/2 cent tax that is law until 2030 is a tax increase, when the tax can then be used to shore up pension debt before 2031.)
This mayor promised austerity and responsible government when he was elected. Remember when he said a billion dollars is enough money? The problem with Mayor Curry - and the entire city government, for that matter - is that the moment Shad Khan wanted a practice field for the Jaguars, the city found $45 million. The moment Khan wants a roof on the stadium, City Council will approve it, 19-0, regardless of whether we have the money or not.
I have a hard time approving any big tax break like this for any person or business when our city cannot afford it, and when the recipient needs that money less than the citizens who paid those taxes. Furthermore, I cannot extend a tax, raise a tax, create a tax, or endorse a tax to keep us from turning into a third-world country while we are giving our tax dollars away so willingly.
Amazon typically asks for and receives incentives from most communities vying for their distribution centers. However, it does make you wonder if they would have came on their own eventually without them. Like you mentioned, they have to have a facility in the vicinity to serve the market. On the other hand, one could argue that they could have went to Baker or Nassau County and served the same market without paying taxes in Duval. Wal-mart did this a few years ago.
Quote from: thelakelander on July 28, 2016, 08:48:36 AM
Amazon typically asks for and receives incentives from most communities vying for their distribution centers. However, it does make you wonder if they would have came on their own eventually without them. Like you mentioned, they have to have a facility in the vicinity to serve the market. On the other hand, one could argue that they could have went to Baker or Nassau County and served the same market without paying taxes in Duval. Wal-mart did this a few years ago.
Yes, I think may be what's happening. Previous distribution centers in FL went to Lakeland and Ruskin rather than Orange County and Tampa. Also there may be some office jobs in play that could have gone to another area.
855,000 sf
2,131,242 sf
2,300,000 sf
2,400,000 sf
Which is it? I've seen all 4 numbers used to describe the size of the building. If it's any of the 2+ million figures, that would make it the largest Amazon fulfillment center in the US (possibly word...I couldn't get numbers on most of them).
It's +800k square feet. It's pretty much a carbon copy of what they've been building in various cities across the country.
In most warehousing, cubic feet is a better indicator of building size and capabilities. A million square feet at 20 feet high is essentially half the size of the same square feet built 40 feet high. Actually, the latter might be even more than double the capability due to having the same standard level of clearance over the top pallets (literally, the overhead associated with the vertical stack) now supporting double the height.
I guess Cecil Field is next on Amazon's list. Another airport location 8).
Gramercy's bought the center.
https://www.jaxdailyrecord.com/article/amazons-cecil-fulfillment-center-sold-for-dollar96-million