Amazon withdraws request for tax incentives to build Shakopee distribution center

Amazon.com has withdrawn its request for more than $1 million in tax incentives to build its planned distribution center in Shakopee, and instead it would like any money to go towards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 considering a tax-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.