$607-Million Amazon Project in Orange County Faces Critical Hurdles

SLATE HILL—Public hearings are scheduled next week that could determine the fate of a proposal that some consider to be the largest private industrial development project ever in Orange County. At press time, while there is some local opposition to the project, the business and organized labor sectors are firmly behind the development plan that is in the approval process in the Town of Wawayanda.

The $607-million project by a partnership of Scannell Properties of Indianapolis, IN and Amazon Services, LLC, which calls for the construction of a 3.2-million-square-foot Amazon robotic distribution center in Slate Hill, is before the Wawaynada Planning Board and the Orange County Industrial Development Agency.

Although the proposed plan has received some opposition for potential traffic and environmental impacts, the plan has also garnered the support of business groups, such as The Orange County Partnership and the Hudson Valley Building and Construction Trades Council.

The project is in the SEQRA process before the Wawayanda Planning Board, which has scheduled a June 11 session to discuss the project further and perhaps make a ruling on its environmental impact. A day earlier, a public hearing is scheduled by the Orange County IDA to hear input on proposed incentives the project would receive if approved.

Some of the project highlights include the construction of a five-story facility with each floor consisting of approximately 600,000 square feet of space. According to IDA documents, the partnership states that the completed facility will create at least 750 new jobs within three years of completion of construction.

L. Todd Diorio, president of the Hudson Valley Building and Construction Trades Council, stated that to secure IDA incentives, the developer must adhere to the IDA’s local labor policy that requires at least 85% local labor work on the project. He told Real Estate In-Depth that he fully expects the project to be built predominately by union tradesmen and that initial contracts that have been let appear to be going to union contractors. He estimated the development will result in more than 1 million construction man-hours to complete the facility.

Mr. Diorio stated that the proposal is the largest industrial project in memory and exceeds the LEGOLAND New York project in Goshen, NY, in terms of investment. He estimated the Amazon facility will entail approximately $500 million in construction activity. A large contingent of members of the building trades have attended public hearings on the project and will continue to do so, he noted.

Back in 2023, Scannell and Amazon secured approvals for a 900,000-square-foot warehouse at the 22 McBride Road site, but eventually submitted a much larger proposal. The 100-acre property is currently an active quarry.

The Scannell-Amazon venture is currently seeking state and local sales tax exemptions from the Orange County IDA of up to $18,821,250 for qualified expenditures of up to $250 million and another $12,187,500 for state and local sales taxes in connection with other qualified expenditures of up to $150 million, putting the proposed total exemptions at more than $31 million. The venture will also be seeking a PILOT (payment in lieu of taxes) with the Minisink School District and other taxing jurisdictions.

Look for full coverage and project updates in Real Estate In-Depth.