Amazon signs lease for new OKC facility
Amazon has signed a construction contract and lease agreement to pay more than $246,000 in rent annually for its fulfillment center near the Will Rogers World Airport. The construction contract and lease and operations agreement are between the Oklahoma City Airport Trust and FC Oklahoma City OK Landlord, LLC, which lists Amazon.com Services, Inc. as a sublessee. The documents, obtained by The
Oklahoman through an open records request, show Amazon will pay an initial annual rate of $246,039.26.
The lease rate is determined by a rate of 8 cents per square foot for the more than 69 acres of land to be used for the project. With about 3 million square feet, Amazon will pay $20,169.94 per month.
The construction contract, dated May 25, is effective until a certificate of occupancy is issued, at which point the lease agreement takes effect.
Once the facility is completed, the lease agreement calls for an increase of 0.6-cent per square foot each five years for the length of the lease.
Oklahoma City Mayor David Holt praised the city’s ability to attract the presence of the internet retail giant as a reflection of the growth of Oklahoma City as a whole.
“Amazon choosing to put a pretty large facility with a lot of capital investment and a lot of full-time jobs ... is a testament to how far we’ve come,” Holt said.
The fulfillment center is to be constructed at 9201 S Portland in Oklahoma City in the Lariat Landing development.
Amazon Senior Manager of Economic Development Tom Florino provided project details to the Oklahoma City Economic Trust recently. The company plans to employ about 1,750 people at the fulfillment center when completed. Amazon anticipates a capital investment of about $146 million for what will eventually be a 640,000-square-foot facility. Amazon uses its fulfillment centers as a first stop for filling online orders. The warehouses hold inventory that is pulled from shelves and shipped when a customer orders. Adding centers helps Amazon better serve its customer base by having more of its inventory closer to customers.
Oklahoma City councilors recently voted to authorize staff to negotiate job-creation incentive agreements with Amazon. The proposal includes $1 million in public payments to Amazon for 53 managerial jobs associated with the facility, as well as an additional $700,000 in road and other improvements.
The incentives are still being negotiated and will be brought back to the city’s economic trust and City Council in late June or July, Oklahoma City Economic Development Project Manager Brent Bryant said.
“Our incentives are performance based,” Bryant said. “We’ve been working with the company since November 2017 about incentives and infrastructure type things. It’s our intention to do that and proceed in good faith.”
Holt would like to see continued growth in the area, ushering in new development in south Oklahoma City.
“I hope it’s a continued catalyst for continued development at Lariat Landing,” Holt said. “Hopefully it will catch some attention and inspire others maybe to join Amazon.”