The world’s largest e-commerce company is seeking taxpayer-backed assistance to transform a southwest Atlanta warehouse into a gigantic package facility.
Amazon is pursuing a $16 million tax break in the city of South Fulton as part of the company’s effort to buy and modernize an existing warehouse off Campbellton Road. The $500 million project includes converting the 1.1 million-square-foot warehouse into a “first mile” fulfillment center filled with robotics and 750 employees, according to Amazon.
The Development Authority of Fulton County will consider the tax break during a meeting scheduled for Tuesday, according to a meeting agenda.
“We are energized by the momentum, investment and potential impact this proposed project represents for South Fulton,” Kwanza Hall, DAFC chairman, told The Atlanta Journal-Constitution in a statement. “The outlined development … seeks to transform an inactive industrial site into a modern fulfillment network, create up to 750 jobs and reinvest in an existing asset that strengthens the local economy.”
Credit: Miguel Martinez-Jimenez
Credit: Miguel Martinez-Jimenez
Completed in 2020, the warehouse at 7055 Campbellton Road was developed by Cobb County-based Taylor & Mathis as the Chattahoochee Logistics Center. Amazon said it plans to buy the facility and its surrounding 153-acre site — property Fulton County assessed as worth $55.6 million — for an undisclosed price.
In a DAFC fact sheet on its website, Amazon said it will extensively renovate the facility’s interior, integrating high-end robotics to store, package and fulfill customer orders.
Amazon spokesperson Amber Plunkett said it’s a common practice for local governments to incentivize projects that create jobs.
“If we enter into an agreement like that, we take it seriously — making all required tax payments and working hard to invest and create every job we projected," she said in a statement. “The way these agreements are structured means that we only receive benefits from them if we do our part.”
First mile facilities are where Amazon packages begin their journey and involve the initial sorting and packaging processes. Most packages then pass through a “middle mile” delivery phase, which can involve interstate or coast-to-coast truck travel, before arriving at a “last mile” distribution center for final delivery.
Credit: Miguel Martinez-Jimenez
Credit: Miguel Martinez-Jimenez
Amazon operates several sorting centers and distribution facilities in metro Atlanta. The company, which ranks second on Fortune magazine’s list of the largest companies by revenue, is also one of the region’s largest data center operators — announcing an $11 billion expansion last year to its Georgia computer server farm footprint.
DAFC estimates Amazon’s Campbellton Road project will generate $36.2 million over the next decade despite the tax break.
The authority also noted in the fact sheet that “a floor would be set” to prevent property tax collections from declining amid the renovation work. This would likely take place through a mechanism called a payment in lieu of taxes agreement, or PILOT, in which the company agrees to pay a set tax amount until its investment is complete. The property currently generates $772,000 in annual taxes.
How to attend the meeting
The DAFC meeting is virtual only and will be streamed at 2 p.m. Tuesday. The public can access the Zoom meeting at us02web.zoom.us/j/82296477963?pwd=JFbscDbW0ab8v4HbogfbUBDWbmIbbO.1 or by calling 646-931-3860. The Zoom passcode is “787752.”
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