Skip to main content

Amazon withdraws request for tax incentives to build Shakopee distribution center

  • Author:
  • Updated:
    Original:

Amazon.com has withdrawn its request for more than $1 million in tax incentives to build its planned distribution center in Shakopee, and instead it would like any money to go towards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

walz flanagan lorie shaull flickr

Gov. proposes 'Walz Checks' for most Minnesotans

The governor wants to use $700 million of the state's surplus to fund the payments.

Hutch crash booking photo

Walz, Flanagan call on Hennepin Co. sheriff to resign

"I would say that it is time for him to resign," the Lt. Gov. said.

line 3 enbridge portage lake hubbard county mn tony webster flickr

Months after missing deadline, Enbridge says Line 3 aquifer breach is fixed

The company told Bring Me The News it "successfully stopped the flow of groundwater" at the site.

canada bodies found

Baby, teenager among 4 found dead along MN, Canada border

Authorities believe all four froze to death.

unsplash roller rink skates CROP

Former roller rink, tennis courts will become new sports hub

The Wooddale Fun Zone has been closed since spring of 2020.

hibachi daruma

Popular hibachi food truck opens second Twin Cities restaurant

The much-anticipated Daruma opens for takeout Thursday evening.

20211128_Vikings_49ers_REG12_0144 (1)

What changes are coming to the Vikings' offensive line?

Once again, Minnesota has work to do to figure out its interior spots

Kris Ehresmann

One of Minnesota's key COVID-19 leaders is retiring

Kris Ehresmann has given more than 30 years of her life to public health in Minnesota.

summit beach park orono

Plan to develop Orono park on hold after Daytons object

The Dayton family donated the land to the city for the park in the 1970s.

covid nurse doctor hospital wikimedia commons

Child from Twin Cities, school staff member die from COVID

Both deaths were reported by the Minnesota Department of Health Thursday.

snow

3 clippers will deliver snow to Minnesota through Tuesday

Clippers move through Friday night, Saturday night and again Monday.

Screen Shot 2022-01-20 at 10.45.51 AM

Video: Inebriated Sheriff Dave Hutchinson after high-speed crash

Hutchinson was unaware of his location and repeatedly said he wasn't driving.

Related

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.