Controversial $607-Million Amazon Project in Orange County Secures Key Approvals

The $607-million project is believed to be one of the largest private industrial developments in the history of Orange County.

Controversial $607-Million Amazon Project in Orange County Secures Key Approvals
A rendering of the proposed Amazon project that would be built on a more than 100-acre site that is currently operated as a quarry.

SLATE HILL—The 3.2-million-square-foot Amazon distribution facility project that was considered dead by many observers a few months ago is alive and well and secured critical height exception, special use permit and site plan approvals by the Wawayanda Planning Board on Oct. 22.

With little discussion, the Planning Board last night approved a minor lot line change and then the requested height exception, special use permit and project site plan approval by a near unanimous vote.

The $607-million project is believed to be one of the largest private industrial developments in the history of Orange County. The project proposed by a partnership of Scannell Properties and Amazon Services, LLC, calls for the construction of a five-story Amazon robotic fulfillment and distribution center on McBride Road in Slate Hill. Each floor (two below grade and three above grade) would total approximately 600,000 square feet. The 100-acre property is currently an active quarry.

With municipal and IDA approvals on the horizon, business leaders praised the Planning Board’s actions that will fuel significant tax revenue and the creation of many construction and permanent jobs.

Commenting on the Planning Board’s approval of the project, Conor Eckert, president and chief executive officer of the Orange County Partnership said, “The approval of the Amazon project is a major win for Orange County and the Hudson Valley. It sends a strong signal that Orange County is open for business and ready to lead the next generation of economic development. This forward-thinking project will not only generate new jobs and strengthen the local tax base, but it also shows that Orange County is ready to compete nationally for high-impact, future-focused projects seeking locations in the Northeast.”

According to documents filed with the Orange County Industrial Development Agency, the completed Amazon 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, said after the Planning Board vote: “This is great. It has been a long process for us to get the approval. Scannell has been a friend with labor. We have site work getting ready to start, hopefully soon, with a union contractor.”

Diorio noted 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 said that he fully expects the project to be built predominantly 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.

Some observers had written off the project as dead back in June when the Town of Wawayanda’s Zoning Board of Appeals voted unanimously (4-0) to reject a needed height variance for the Amazon project. The Scannell project, also known as “Project Bluebird,” received a favorable negative declaration by the Planning Board in June on its requested special use permit. However, the project failed to garner the necessary height variance (from 35 feet to approximately 66 feet) from the ZBA to allow it to proceed any further.

Developer Scannell Properties re-emerged on Aug. 13 before the Wawayanda Planning Board stating that Town Code 195-13 specifically allows for a project to be granted a height exception if its fire-fighting capacity is sufficient and if its property buffers are greater than required.

Matt Boone, development manager of Indianapolis, IN-based Scannell Properties, testified before the Planning Board at that time that the project meets both exception requirements and that its fire suppression system had recently been approved by the Department of State. In terms of setbacks, Boone noted that the project offers setbacks that range between 650% to 2,000% greater than the setback requirements by the town.

A public hearing on the Scannell height variance request was held on Sept. 10 and at that session the Planning Board closed the public hearing.

The developer, in addition to seeking the Planning Board’s approval, has gone to court in connection with the ZBA denial. Scannell Development and the property owner Aden Slate Hill, LLC filed an Article 78 proceeding on July 24 in the New York State Supreme Court in Orange County against the Town of Wawayanda and the town’s Zoning Board of Appeals and is seeking to have the ZBA’s denial vote annulled and have the court compel the ZBA to approve Scannell’s height variance. Among its charges contained in the lawsuit, Scannell noted that the ZBA previously approved a similar height variance to Competitive Power Ventures (CPV) energy plant.

The Town of Wawayanda and ZBA have denied allegations contained in Scannell’s Article 78 proceeding and are seeking to have the court dismiss the litigation against both the Town of Wawayanda and its ZBA. It is not known at press time if the Scannell litigation against the town and ZBA is still pending.

Attorney and Democratic candidate for Orange County Executive Michael H. Sussman, Esq. announced on Oct. 14 that he had filed an Article 78 proceeding challenging the Wawayanda Planning Board’s negative declaration in June. The suit states that the Planning Board’s actions violated the New York State Environmental Quality Review Act. The litigation was filed on behalf of neighbor Diane O’Neill and the Save Wawayanda Inc. and Protect Orange County organizations.

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.

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