Dayton, Cincinnati join to woo Amazon
Application for $5B HQ will note ‘uber region’ between cities.
Amazon has already announced it’s bringing 1,000 jobs to a new fulfifillment center between Dayton and Cincinnati in Monroe, but offifficials fromboth cities want
the largest prize the online giant has dangled in front of every city mayor in America.
Dayton and Cincinnati offifficials have joined forces to submit an application to bring Amazon’s second $5 billion headquarters to the area. Applications are due later this month and Dayton’s andCincinnati’s entry toAmazon will emphasize the “uber region” that sits between the two cities.
“The application is a collaborative one that supports amutual outcome for Amazon coming to
the Cincinnati- Dayton region,” said Shelley Dickstein, Dayton city manager.
The combined Dayton- Cincinnati region has a huge variety of assets that could impress and lure Amazon, offifficials and elected leaders said.
The city of Dayton has a collection of sites that could work as Amazon’s new home, and so does Cincinnati and other parts of the southwest Ohio region, which will be promoted collaboratively, Dickstein said. Southwest Ohio region is not alone in its communities making a joint pitch toAmazon. Some communities and jurisdictions in California, New York and other states are banding together in thehopes itwill improve their desirability.
The short distance separating Dayton and Cincinnati means there are opportunities to try to grow the cities strategically to improve their connectivity and economic and market strength, officials said. Dayton and Cin- cinnati is going to become more like the Twin Cities of Minneapolis and St. Paul, Minn., and Dallas and Fort Worth, Texas, city offifficials said.
“Keep in mind that we’re talking about 50,000 jobs, so should wewin this bid, therewill be people coming from both the Dayton and Cincinnati areas to work there,” said Dayton Mayor Nan Whaley.
Amazon already has a major presence in the state, and continues to invest millions in building more facilities.
Hefty tax credits and months of strategic negotiations helped solidify Amazon’s decision to build its next fulfillment center in Monroe — a plan local officials and developers referred to as Project Big Daddy. The company confirmed last month its plans to open a fourth Ohio fulfillment center that will createmore than 1,000 full-time jobs in the Warren County portion of Monroe.
The online retailer also announced plans in late September to open its fifth Ohio fulfillment center in Euclid, which will create more than 1,000full-time positions. The company will also expanding with an upcoming fulfillment center in North Randall, and it currently operates fulfillment centers in Etna and Obetz.
The 1million-square foot facility inMonroe near Interstate 75 will employ workers who will pick, pack and ship larger customer orders. The records show that the development will be built at 700 Gateway Blvd. by IDI Gazeley, which currently has five available properties for development in Ohio, all at Park North in Monroe.
Atlanta-headquarteredIDI Gazeley developswarehousing, distribution and manufacturing facilities around the world, and specializes in sustainable warehouse development. Tax credits helpedentice the online giant to theMonroe location, city records show.
The Ohio Tax Credit Authority approved a 1.39 percent, 10-year tax credit for the Amazon facility that is expected to create $26.7 million in new payroll and be a $30 million fixed-asset investment. The tax credit starts in January. As part of the tax credit agreement, the Ohio Tax Credit Authority says Amazon will have to maintain operations at the Monroe location for at least 13 years.
Public records also show the developer, referred to as “Park North 6 LLC” entered into a separate agreement with the city of Monroe through a Community Reinvestment Area Agreement. The CRA stated the cost of site development and construction of a new building will likely exceed $70 million. The developer estimated that the development process will create 170 fulltime jobs with an aggregate annual payroll of approximately $5.1 million.
Under the agreement, the developer received a 100 percent tax exemption for real property improvements made to the project site for 15 years. The expectedAmazon project completion date is Dec. 28, 2018, and the “tenant improvement portion” of the project will be completed no later than Feb. 1, 2019.
“The construction and operation of the facility is predicated on being able to achieve the requested tax abatement of 100 percent of improvements for 15 years as described in the existing Development Agreement with the city. The facility will be required to be competitive on a regional basis and able to compete with other tax-abated property,” the document stated.
With more than 6,000 Amazon employees already working in the state, the increased expansion makes the company a major economic player for the area.
“The support of local leaders and incredible workforce has been instrumental in our decision to locate the new fulfillment center in the state, and we are grateful for the support we’ve received to bring new jobs and investment to Ohio ,” said Sanjay Shah, Amazon’s vice president of North America Customer Fulfillment, in a statement.