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Area Development - Site Selection, Facility Planning and Workforce Development

Amazon Plans $130 Million Investment On Two Fulfillment Centers In New Jersey

01/08/2013
Amazon plans to open a 1-million sq ft fulfillment center in Robbinsville, New Jersey, with plans to develop a second Garden State facility and create hundreds of jobs.

“Phase one of Amazon’s new state-of-the-art fulfillment center in Robbinsville will spur growth and investment for the Garden State and our local economies while bringing meaningful job creation opportunities for New Jersey’s families,” said Gov. Chris Christie. Christie added this project is just the beginning of a long-term partnership with global e-commerce leader Amazon.com. This year the company plans to begin construction on two state-of-the-art fulfillment distribution center facilities in the Garden State.

“We are excited to open our first fulfillment center in New Jersey, bringing jobs and investment to Robbinsville Township,” said Mike Roth, vice president of Amazon’s North American Operations. “We appreciate the support of the New Jersey Economic Development Authority, New Jersey Business Action Center, and other state and local leaders who have worked with us to find this site.”

“Today’s announcement establishes a future partnership committed to growing New Jersey’s economy and creating quality jobs.” The Governor’s Office said. “These distribution facilities are expected to result in at least $130 million in capital investment, along with the expected creation of several thousand quality jobs for our families, including plans for over 1,500 full-time jobs, as well as thousands of full-time temporary, seasonal and construction jobs.

“In yet another positive sign in our state’s economic and job growth, I’m pleased Amazon is committed to helping New Jersey grow and create quality jobs,” said Christie. “After months of hard work and collaboration, Amazon has joined the long list of companies that recognize New Jersey’s economic and business climate is improving. We’ve created an atmosphere of job creation, growth and investment, which is why we have taken another important step toward placing quality, good-paying job opportunities within reach of our families. The investment commitment is contingent on the receipt of economic development incentives that make such investment economically viable for both the State of New Jersey and the company. “

According to the Governor’s Office, Amazon agreed to collect a seven percent sales tax on Amazon online sales in New Jersey starting this July. The new tax revenue is estimated to be at around $30 million per year.

“We are extremely excited to welcome Amazon to Robbinsville Township,’’ said Robbinsville Mayor Dave Fried. “We understand Amazon could have chosen anywhere in New Jersey to build its new distribution center, and we are fortunate to have the infrastructure and resources to meet their needs and consummate one of the most sought-after business partnerships in recent memory. With hundreds of new jobs and the tax revenue for our Township, we are obviously thrilled Amazon chose Robbinsville.’’

Technically, the project is being undertaken by New York City-based KTR Capital Partners, a private equity firm. As an incentive, Robbinsville Township Council offered KTR a 20 year payment-in-lieu-of-taxes deal worth $13.755 million. IIn order to do facilitate the project, KTR had to create a separate entity named KTR NJ Urban Renewal LLC, because state law allows only urban renewal entities to enter into a PILOT agreement with municipalities.

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