Skip to main content

Amazon withdraws request for tax incentives to build Shakopee distribution center

  • Author:
  • Updated:
    Original: has withdrawn its request for more than $1 million in tax incentives to build its planned distribution center in Shakopee, and instead it would like any money to go towards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 2023-01-27 at 7.45.44 PM

Tyre Nichols: Initial police version of events bear similarities to George Floyd killing

Memphis PD said Nichols complained of 'shortness of breath' following 'confrontations' with police, who in reality violently beat him.

George Floyd, protest

Twin Cities authorities preparing for community reaction to Tyre Nichols video

The ATF division in St. Paul sent out an alert out of "an abundance of caution."

Screen Shot 2023-01-27 at 2.12.05 PM

Changes at K102's Chris Carr & Company, with Sam Sansevere joining as co-host

She is the daughter of former KQRS morning show personality Bob Sansevere.

Screen Shot 2023-01-27 at 1.16.21 PM

Minneapolis' Royal Foundry Craft Spirits announces closure

The distillery set out to infuse the Minneapolis craft cocktail scene with British flavor.


Shutterfly to cut almost 100 jobs at Shakopee facility

The layoffs are expected to impact multiple positions within the company.


Mill City Museum in the running to be named best history museum in the U.S.

The museum offers scenic views of the Mississippi River.


Man charged with attempted murder of White Bear Lake police officer

Daniel Holmgren Jr., 33, was being served an arrest warrant at the time of the incident.


Gallery: 1,000-acre Wisconsin resort listed for nearly $4.3M

The lush landscape features a creek and private lake.

school bus

Alert after Woodbury students approached by strangers asking if they want candy

Valley Crossing Elementary School urged parents to go over safety information with their children in response to the incident.

basketball unsplash stock

North St. Paul basketball cancels Eden Prairie game after opposing coach's reinstatement

Head Coach Cornelius Gilleylen said he let his players decide amongst themselves.


Sears to close Kmart Distribution Center in Shakopee

Sears has confirmed that it will close its Kmart Distribution Center in Shakopee at the beginning of 2013. A company spokeswoman said that the 130 workers affected by the shut down were informed last week that they were losing their jobs. Some of the workers have reportedly been with the distribution center since it opened in 1981.