Support for the $200 million project is expected to help create 1,500 jobs in Milwaukee County.
MADISON, WI. March 25, 2019 – The Wisconsin Economic Development Corporation (WEDC) has approved awarding state income tax credits to support Amazon’s plans to build a 640,000-square-foot fulfillment center in Oak Creek—a project expected to create 1,500 jobs.
Amazon plans to build the $200 million facility in the Ryan Business Park at Ryan Road and I-94.
“I thank Amazon for its continued commitment to growing in Wisconsin,” said Mark R. Hogan, secretary and CEO of WEDC, the state’s lead economic development organization. “Amazon’s existing distribution center in Kenosha County, which opened in 2014, is a true Wisconsin success story, and the company’s decision to make another major investment in our state is a testament to Wisconsin’s strong business climate and outstanding workforce.”
WEDC is awarding the company with up to $7.5 million in tax credits for job creation and capital investment for any investments Amazon makes in Wisconsin. The actual amount of credits the company will receive is contingent upon the number of jobs created and the amount of capital investment the company makes through 2024.
All tax credits are “pay as you grow,” which means the company must create the jobs and invest the capital before it can receive any credits.
This catalytic project will be the first-of-its-kind robotics sorting center for Amazon. The newly constructed 640,000-square-foot fulfillment center will be the flagship facility and will represent the company’s largest investment in Wisconsin, both in terms of capital expenditures and in terms of new jobs.
The Amazon associates at the facility pick, pack and ship small items such as books, household items and toys, a process that will utilize Amazon Robotics technology. This high-end technology helps speed up order processing times and increasing fulfillment center storage capacity.
Local and regional officials applauded Amazon for its commitment to grow in the region.
“We’re delighted that one of the world’s most successful businesses has cast another vote of confidence in Wisconsin,” said Gale Klappa, co-chair of the Milwaukee 7 regional economic development organization and executive chairman of WEC Energy Group. “This significant investment by Amazon speaks to the competitiveness of our region for global companies and to the strong upward trajectory of our economy.”
In addition to the 1,500 jobs expected to be created by the company in Oak Creek, an economic modeling study estimates the project could indirectly generate 792 additional jobs in the region. Those 2,292 combined jobs would generate nearly $3 million in state income tax revenue annually.