Greenwood a finalist for Amazon packaging center

<p>Amazon is considering Greenwood for a rare packaging center, one of only a handful in the United States, that could bring 1,250 middle-wage jobs to the area.</p><p>The city is hoping to land the project, but another community is also a finalist for the project. The other community has not been identified.</p><p>The major online retailer announced Monday it is considering opening a “receive center” in a 615,000-square-foot facility on Allen Road, after the company and city staff kept details of the project under wraps for several weeks. A proposed FedEx distribution center was planned for the same location before the company backed out in March.</p>[sc:text-divider text-divider-title="Story continues below gallery" ]<p>“It is a huge plus for the city that Amazon would look at Greenwood, Ind. Greenwood has hit the national market and that is exciting to know,” Greenwood Mayor Mark Myers said.</p><p>“That opens up the market for us to bring a lot more business into our community. If Amazon is willing to use us, then other businesses are going to trust us. FedEx put us on the national market, and I think that’s one of the reasons why Amazon showed up. When FedEx backed out, they knew there was property that was viable.”</p><p>A final decision from Amazon on which community it has selected is expected in early October, the company’s economic development manager Ryan Wilson said. Greenwood officials do not know what Amazon’s criteria is as it makes a final decision in the coming weeks, and an Amazon official said the company could not share that information until a lease is signed.</p><p>To appeal to the company, the Greenwood city council approved two 10-year tax breaks on property taxes for the building and high-tech equipment.</p><p>Two residents questioned and opposed the tax breaks due to the type of jobs the company is bringing. Council members said previously they would not offer a final vote on tax breaks until the company was identified. Amazon presented to the council Monday night.</p><p>Amazon says it plans to invest $45 million in real property improvements, as well as $35 million in equipment over the 10 years of the abatements. The city would still receive about $5 million in real property taxes over the life of the abatement, and about $1.3 million in personal property taxes over the life of that abatement.</p><p>For the personal property abatement, the company will pay 20 percent of its tax bill for each of the 10 years. That money will be disbursed among all local government units.</p><p>The real property tax abatement will phase in property taxes, with the company paying 10 percent of its tax bill the first year until property taxes are paid in full after the abatement expires. That property tax money will be captured by Greenwood city government only because the property is in a TIF district. Clark-Pleasant Schools and other local governments will not see an increase from those property taxes.</p><p>In 2016, the land where the center would be built was designated a tax increment financing, or TIF, district, meaning that property taxes on any new development would be set aside for infrastructure and economic development projects for the city, rather than being spread out among the city, county, schools, fire departments and libraries. Indiana law allows for TIF districts to collect taxes for 25 years after borrowing money to do projects.</p><p>A lease, which Amazon has not yet signed, is for a longer term than the 10-year tax breaks, Wilson said, so the company would have a presence in Greenwood for a long time.</p><p>“Each year — we hope — more and more money will be funneled back in (to the city),” said Shayla Pulliam, the city’s new economic development director who is working closely with Amazon on this project. “The city as a whole will benefit.”</p><p>If Greenwood is chosen as the site for the new facility, it would bring 1,250 full-time jobs that pay an average wage of $14.65 an hour.</p><p>The average annual salary for those employees would be around $30,000, which is significantly lower than the average salary among Johnson County residents, who made $44,386 in 2016. But the employees would have access to Amazon’s health insurance plan.</p><p>“We obviously want tenants who are going to provide higher wages, but we also can’t skirt around the benefit of having healthcare,” Pulliam said. “No, the wage isn’t as high as we had hoped or wanted, but I think they’ve put together a great deal and they would be providing an invaluable resource to the people of Greenwood. (Health insurance) is something that’s really important, and it can really change an individual’s situation around.”</p><p>With benefits, the hourly wage would be closer to $17 or $18 an hour, and the company does offer overtime. Benefits would start on day one of employment and includes healthcare, dental, vision, 401K and paid time off, Wilson said.</p><p>“They’re actually the exact same benefits that I receive as a corporate employee,” Wilson said. “We want all of our employees, from the tier 1 associates in the fulfillment centers all the way up to our senior executives, to feel like they have ownership … A lot of people work for us just for the benefits.”</p><p>Jobs at the center would be entry level and would require a high school diploma or GED equivalent, Wilson said.</p><p>“One thing we don’t say is this is an easy job where you are sitting on your butt all day. We take care of our associates and it is a safe job … but you are putting in work,” he said.</p><p>A “receive center” works as a fulfillment center for the company’s other fulfillment centers, Wilson said. Employees will package incoming products that will then be shipped to local fulfillment centers.</p><p>“We really try to create a pathway for people to move up and get into better positions if they so choose,” Wilson said.</p><p>After an employee has been with Amazon for one year, the company will prepay 95 percent of that employee’s college tuition for in-demand classes and certifications, mostly in trade areas such as machinist specializations. Amazon says they would work closely with the city and county to tailor the education programs they are willing to fund to the community’s workforce needs.</p><p>Amazon is dedicated to hiring veterans. CEO Jeff Bezos has made it a company goal to hire 25,000 veterans, a number they have not yet reached, Wilson said.</p><p>“I want to ask, if we do locate in this community, for your help in hiring those veterans,” Wilson said to council members.</p><p>Myers said there are several veterans in Greenwood who are looking for work, which is one of the main reasons Amazon’s pitch was so appealing to him.</p><p>“It is very important to me that we take care of our vets,” he said.</p><p>Amazon would be looking for a local workforce of 1,250 employees, some of whom would commute from neighboring counties. Amazon is willing to hire employees from any community and would not give special preference to Greenwood residents, Wilson said. They would, however, partner with the city and county to conduct area job fairs.</p><p>“Certainly, with the number of people we’re talking about, we’re going to have to bring in other folks,” he said. “It is almost impossible for us to predict what that labor force would look like, especially at a local level.”</p><p>The company would start hiring in the winter of 2019 and hopes to have this new facility up and running by 2020, Myers said.</p>[sc:pullout-title pullout-title="At a glance" ][sc:pullout-text-begin]<p>Here is a look at the proposed Amazon facility in Greenwood:</p><p>What: Packaging center and regional office for Amazon, a major online retailer</p><p>When: If Greenwood is selected, facility would be operational by 2020</p><p>Where: 615,000-square-foot facility to be built on Allen Road near Interstate 65 and Worthsville Road</p><p>Jobs: 1,250 full-time, entry-level jobs</p><p>Pay: Average hourly wage of $14.65; all employees eligible for full benefits</p><p>Eligibility: High school diploma or GED</p><p>Investment: $80 million investment for the city, which approved 10-year tax breaks for building and equipment</p><p>Decision: Greenwood is competing with one other community; Amazon will make its final decision in early October</p>[sc:pullout-text-end][sc:pullout-title pullout-title="At a glance" ][sc:pullout-text-begin]<p>Amazon is considering opening a “receive center” in a 615,000-square-foot facility on Allen Road, northeast of the Interstate 65 and Worthsville Road interchange on the southeast side of the city. Here is a timeline of plans and proposals for that property:</p><p>Sept. 2017: The site was rezoned for the creation of a 350-acre business park.</p><p>Oct. 2017: FedEx announced plans to build a distribution center on 237 acres of the property. The company planned to spend $259 million to purchase the land and construct the facility on the site. The FedEx facility would have created 455 full- and part-time jobs.</p><p>March 2018: City and company officials announced that plans for FedEx to construct the 608,000-square-foot distribution facility had fallen through because it was no longer needed.</p><p>Aug. 2018: &quot;Project Brutus&quot; appeared on the Greenwood city council agenda for the first time. KSM Location Advisors, an Indianapolis-based project management firm, announced that a company whose name was not yet being revealed was considering the site for a distribution center and regional office that would bring 1,250 jobs to the area, but was asking for 10-year tax abatement’s on property taxes for the building and equipment.</p><p>Sept. 2018: Amazon announced it is the mystery company behind &quot;Project Brutus,&quot; and Greenwood is in the running for the packaging center. Council members approved the tax breaks.</p>[sc:pullout-text-end]