Amazon Fulfillment Center shatters goals. It's now eligible for this much in tax incentives
After six months of operation, Amazon's new Fulfillment Center has surpassed its job creation and capital investment goals, opening the door for the company to receive $2.5 million in incentives promised to them by the Blueprint board.
On Tuesday, Leon County commissioners will get an update on the economic and job impact that the online retail giant has had on the community since opening six months ago.
Under Amazon's deal with the Blueprint Intergovernmental Agency, the company committed to create 1,000 jobs and spend $200 million in capital investment. According to county agenda items, Amazon created 1,400 jobs and invested $250 million in capital improvements.
"In summary, after only six months of operation, Amazon has already surpassed it's initial commitment of creating 1,000 jobs by 40%, and the capital investment of $200 million has been exceeded by 25%," staff wrote in the agenda.
Commissioners are also expected to get updates on traffic impacts from the new facility, which is located in eastern Leon County off Mahan and Vineland drives, and whether a new Star Metro route will be coming.
County says Amazon workers making $17 an hour or more
On May 21, 2021, the Blueprint Intergovernmental Agency board approved allocating nearly $2.5 million over six years to Amazon through the Office of Economic Vitality's Targeted Business Program.
In order for Amazon to get the money, the company had to hit three goals set out for them by Blueprint: build a 3.2 million square foot facility; invest $200 million in capital projects; create 1,000 jobs in the first full year of operation.
Now that Amazon has hit these marks, the company will begin receiving the sales-tax proceeds from Blueprint. For each of the next six years, the company must apply for reimbursement with OEV and show their number of employees, their annualized salaries and capital investments made. Amazon also must submit an annual report each year so that OEV can report the information back to Blueprint.
The completion of the facility brought about other economic impacts as well. The update includes numbers showing just how important the construction phase was to the local economy.
"The construction phase created 2,256 jobs, providing a boost to the local economy with $119.7 million in construction wages," staff wrote. "Furthermore, the utilization of Disadvantaged Business Enterprises (DBEs) during the construction phase totaled $39,527,210."
The agenda item also says that Amazon exceeded projected hourly wages for employees at the center. Workers were initially expected to make $15 an hour but are earning $17 an hour or more. Nearly 43% of those current workers reside in ZIP codes 32301, 32303 and 32304, which is the poorest ZIP code in Florida.
Amazon is looking to help with unemployment and also looks to provide their workers with comprehensive benefits.
"Health, vision and dental care insurance coverage is provided from day one of employment," staff wrote. "In addition to healthcare coverage, Amazon's benefits package includes pre-paid college tuition to Florida A&M University, Florida State University, and Tallahassee Community College, available 90 days after employment and a 401(k) savings plan with a 50% match."
No StarMetro bus service for Amazon in sight
The agenda item notes that no action has been taken to extend city StarMetro bus service to the Fulfillment Center, which is located outside city limits. StarMetro is limited to running buses inside the city unless an agreement is reached between the city and county.
In 2022, the city told the county that it would require $1.3 million for fleet expansion and $275,000 in annual operating costs to extend city bus service to Amazon.
"To date, no action has been taken to extend city bus service to the Fulfillment Center," the agenda item says.
The agenda item says that while traffic has been occurring "as designed," there have been some noted "isolated" incidents in which truck drivers do not follow traffic laws and block westbound traffic on Mahan Drive while trying to exit eastbound from Amazon.
"In most cases, Amazon trucks that use the Mahan Drive/Levi Place intersection for ingress and egress are using that intersection exactly as designed and as illustrated in the approved site plan," staff wrote. "The site plan was designed to minimize traffic impacts along Mahan Drive and on the local neighborhoods."
Amazon has been working with FDOT and county staff for future plans, which include improving onsite internal road signage to help direct drivers towards I-10. FDOT is also conducting a Project Development and Environment study to evaluate potential improvements.
If you go
The Leon County Commission meets at 3 p.m. Tuesday on the 5th floor of the Leon County Courthouse
Arianna Otero is the City Solutions Reporter for the Tallahassee Democrat. Contact her via email at [email protected] or on Twitter/X: @ari_v_otero.
This article originally appeared on Tallahassee Democrat: Tallahassee Amazon Fulfillment Center shatters goals in hiring, impact