· Related development
Council creates Reinvestment Zone No. 12 and approves Amazon tax abatement and incentive agreement, each 4-1
On January 26, 2021 the City Council adopted Ordinance No. 7901 on second reading, designating about 110.39 acres at N.E. 24th Avenue and Loop 335 as Reinvestment Zone No. 12 (first reading January 12), approved a tax abatement for Amazon, and approved a location incentive agreement for Amazon.com Services LLC for a 1,000,000 square foot non-sortable fulfillment center. Each passed 4-1 with Councilmember Elaine Hays voting no. The executed agreement provides a 50 percent abatement of the incremental value for five years.[1][2][3][4]
Ginger NelsonElaine HaysFreda PowellEddy SauerHoward SmithKevin CarterAmarillo Economic Development Corporation (AEDC)
What the sources say
- ✓ Verified
Amarillo Economic Development Corporation staff: The AEDC's transmittal memo for Ordinance No. 7901 said the reason for creating Reinvestment Zone No. 12 was "to provide Council the option to offer an economic development incentive to a prospective warehouse and distribution facility," and that AEDC staff recommended approval. [2]
- ✓ Verified
On January 26, 2021 the council adopted Ordinance No. 7901 (Reinvestment Zone No. 12) on second and final reading, approved a tax abatement for Amazon Services, LLC, and approved a location incentive agreement for Amazon.com Services, LLC, each 4-1, with Mayor Ginger Nelson and Councilmembers Freda Powell, Eddy Sauer and Howard Smith voting yes and Councilmember Elaine Hays voting no. The minutes for the incentive agreement also state that Hays abstained. The minutes record no reason for the no votes. Kevin Carter, AEDC President and CEO, presented the items. [1]
- ✓ Verified
The executed tax abatement agreement among the City, Happy Horizons Properties L.P., ET Amarillo, LLC and Amazon.com Services LLC covers 110.3886 acres at N.E. 24th St. and Loop 335; it grants a five-year abatement at 50 percent of the incremental increase in value of a distribution warehouse of at least about 1,000,000 square feet expected to cost at least about $70 million and of about $30 million in personal property, and recites an expectation of 500 new full-time positions within 24 months. It states Happy Horizons held title and the premises were to be sold to ET Amarillo and leased to Amazon. [3]
- Abatement
- 50%
- Abatement years
- 5
- Acres
- 110.389
- Facility cost
- $70,000,000
- Personal property
- $30,000,000
- Jobs
- 500
- ✓ Verified
KFDA reported the council's offer as a 50 percent property tax reduction for five years tied to creating 500 jobs and $13.5 million a year in payroll, and that Potter County would consider an abatement on the same terms on February 8, 2021. [4]
- Annual payroll
- $13,500,000