The Macomb County Department of Planning and Economic Development (MCPED) is profiling a different industry each month throughout 2021, and in March, we will focus on Logistics, Transportation and Warehousing - with today’s feature highlighting Amazon.
As background, MCPED can help a business through the entire site selection process to locate the right space for operations and to assist with available incentives that can save a company money. A business doesn’t have to be the size of Amazon to receive assistance, but if they are, we will be there to help. In fact, Amazon is a great client of MCPED services. Here’s their story.
The Amazon facility in Shelby Township is a one-million-square-foot warehouse distribution center that is considered a special handling distribution site, helping with large pick seasons like Christmas. The location handles larger products like kayaks, and also smaller products that are sold less often but that they still need to carry.
Before the Shelby Township site was built, work needed to be done on the property. Its original structure was demolished and a developer cleaned up contaminated soils. Remediation of the brownfield site was approximately $9.1 million over a 20 year period of capturing tax increment financing.
Amazon then invested a total of $104 million on real and personal property and received a 12-year tax abatement from Shelby Township. MCPED assisted with the PA198 paperwork so it could be submitted for review with the local municipality and approved. The Macomb County Department of Roads also contributed approximately $500,000, along with the Michigan Economic Development Authority’s $2 million, to improve the nearby 23 Mile and M-53 intersection. This led to Amazon hiring over 1,000 full-time workers and 300 part-time workers, depending on peak seasons.
Amazon pays their staff $15 an hour with benefits like health care and vision. They also offer Career Choice and pay 95 percent of schooling up front after employees work for one year. To ensure the company has a steady stream of applicants, MCPED has had discussions with Amazon about the Michigan New Jobs Training Program, Michigan Works! job fair services and the On The Job Training program. And while workforce staffing is done in house, Amazon has commented that they can easily find good workers here in Macomb County.
Outside of the Shelby Township facility, Amazon also has a Sterling Heights Delivery Station, which opened in September 2020 on Mound Road. These types of smaller sites are considered last mile projects, which get products to homes quickly. The site was approved for a brownfield incentive to clean up an old landfill and will receive tax increment financing.
Amazon also decided to lease the facility that was built in 2019 as a new delivery station. The company is leasing the 576,000 square-foot site from Ashly Capital and invested $37 million in equipment, while hiring more than 150 workers to run it. Amazon again was referred to Michigan Works! and Macomb Community College for training incentives and to help with Amazon's hiring needs.
These Amazon projects are just an example of what Macomb County Planning & Economic Development can assist with depending on your needs to make any project work. Get in touch if your business is interested in similar services by visiting www.MacombBusiness.com.
Jack John is a project manager with Macomb County Planning and Economic Development. Contact Jack with questions about the Warehousing, Transportation and Logistics sector at jack.johns@macombgov.org. To learn more about this industry, visit https://business.macombgov.org/business-industries-logistics.