Amazon withdraws request for tax incentives to build Shakopee distribution center

Original: has withdrawn its request for more than $1 million in tax incentives to build its planned distribution center in Shakopee, and instead it would like any money to go towards road improvements in the area, the city announced Tuesday.

Shakopee City Council was consideringtax-incentive financing (TIF) district to subsidize the Internet-based retailer's 850,000-square-foot, $220 million distribution center.

But Amazon told the city Monday night it was no longer seeking any shares of the proposed $5.77 million TIF district and it would decline any of that funding.

Instead, the company would prefer TIF funding to go toward the city and county for needed infrastructure improvements near its Shenandoah Business Park site, the city says.

Amazon was likely only to receive about $1.2 million toward construction of the facility, Shakopee Valley News reports.

The Shakopee City Council approved the TIF district at its meeting Tuesday night, the Pioneer Press notes. The plan would generate roughly $5.77 million over nine years, the city notes, and go toward infrastructure improvements on nearby County Road 101 and County Road 83, as well as help with administrative costs.

Shakopee Mayor Brad Tabke told the Minneapolis-St. Paul Business Journal the plan is "A great solution for everyone involved."

Amazon isn't seeking any other additional funding for the project, with the Business Journal noting this is unusual for a project of this size.

The distribution center is expected to generate jobs for 1,000 people.

Next Up

Screen Shot 2020-11-27 at 6.26.50 PM

Minnesota nurse's story about her battle with COVID-19 goes viral

A month later, Ashley Walter is on a hard road to recovery.

Adam Thielen

Report: Still on COVID-19 list, Thielen not expected to play Sunday

Thielen was placed on the COVID-19/Reserve list on Monday.

Image from iOS (19)

Mask-wearing, distancing a common sight on MOA's Black Friday

Thousands of shoppers were out and about on Black Friday despite the COVID-19 situation.

Tim Walz

Gov. Tim Walz, MDH react to record-setting COVID-19 deaths

Minnesota can expect further bad news over the coming weeks.

covid-19, coronavirus

Record 101 COVID-19 deaths reported in Minnesota

The figures are from Wednesday, with no update provided on Thanksgiving.

Screen Shot 2020-11-27 at 9.29.12 AM

Target reveals its 'Cyber Week' online deals

The sales will run from Nov. 29 to Dec. 5.

Minneapolis police

Mayor Frey, Minneapolis police chief reveal new 'no-knock' policy

The new policy for Minneapolis Police Department was announced Wednesday.

Teddy Bridgewater

Coller: It's a what-if Sunday with Teddy Bridgewater's return

Matthew Coller writes a weekly Vikings column for BMTN, with more of his work found at Purple Insider.

Ambulance hospital emergency

15-month-old girl's death being investigated by police in Fargo

The child died four days after being found unresponsive.