Amazon (NASDAQ:AMZN) announced that it plans to open a new and hi-tech one million-square-foot fulfillment center in Tracy, California.
The company said it will create hundreds of full-time jobs with benefits at the site.
“This latest development in Tracy not only represents good jobs coming to the region but California’s strong partnership with Amazon,” said Kish Rajan, director of the Governor’s Office of Business and Economic Development. “This third new distribution center marks a commitment by Amazon of over 1,000 California jobs in the last year alone. We look forward to continuing our relationship with this world leading brand and hope to build more opportunities for Californians in the future.”
This is Amazon’s third fulfillment center in California after earlier announcements for San Bernardino and Patterson. The State of California agreed to defer collecting sales tax for online sales by Amazon for a year, if the company in return agreed to open distribution centers in California.
The San Bernardino fulfillment center is already open and has created 700 jobs, while the Patterson fulfillment center is expected to open later this summer. The Tracy fulfillment center will open after that in the fall.
“We are grateful to be members of the California business community and to employ so many hardworking and skilled Californians,” said Mike Roth, vice president of Amazon’s North American operations. “We are excited to be growing in the state and to be creating hundreds of full-time positions in Tracy.”
This latest California facility in Tracy is slightly different because Amazon is planning to use technology that will create a robotics-controlled warehouse for fulfilling customer orders. It is hard to say how this will affect the number of jobs on-site, but Amazon has reportedly agreed to create at least 1,000 new jobs at the Tracy fulfillment center in return for incentives from the city.
Last month, the City of Tracy approved the use of sales tax rebates as an incentive to attract companies, and Tracy Mayor Brent H. Ives claims they have been working on the Amazon project for at least a year and a half, and preparing industrial/commercial sites with the help of San Joaquin County officials.
“We are jubilant with the announcement that Amazon has chosen Tracy in San Joaquin County for the location of a major investment in a state of the art automated technology fulfillment center,” said Mike Ammann, CEO of San Joaquin Partnership.
Amazon is the first company to take up Tracy’s sales tax rebate incentives, which have been made available only for companies which generate $100 million in sales and create at least 1,000 jobs. The Amazon fulfillment center is expected to add $1 million in new tax revenue for the city.
“I am honored and pleased that Amazon recognizes our streamlined business development efforts, prime location and resources available to meet the demands of their fulfillment center,” said Mayor Ives. “Amazon is a wonderful addition to our economic base and will provide hundreds of jobs for residents of Tracy.”