For the second time in less than a year, retail behemoth Amazon has picked Oregon for a fulfillment center. The new one will be in Salem, and even bigger than the first one in the state, near Portland.
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Capstone Partners and PCCP will develop the new 1M SF facility, which will pick, pack and ship larger customer items, such as sports equipment, gardening tools and pet food.
The site will be in Salem's Mill Creek Corporate Center, where FedEx and Home Depot also have facilities. Perlo Construction has broken ground on the project, with completion set for the fall of 2018.
There have been 13 building permits filed at the property, according to Salem permits and licenses, as reported by BuildZoom. Four of the permits have valuations, the total of which is more than $123M.
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Mill Creek Corporate Center is in an Enterprise Zone, so Amazon qualifies for three years of property tax breaks. According to the Strategic Economic Development Corp., the tax breaks are worth about $3.6M over the three years.
Amazon Vice President of Customer Fulfillment for North America Sanjay Shah said the support of Gov. Kate Brown and other local leaders influenced the decision to locate the facility in the state capital. It will employ about 1,000 workers.
Earlier this year, the Port of Portland Commission approved the sale of 74 acres at the port's Troutdale Reynolds Industrial Park to accommodate development of an 855K SF fulfillment center for Amazon. Troutdale Associates paid about $20M for the site, and inked a long-term lease with Amazon.
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