While she was immersed in association initiatives, it was her first trip to Albany as part of the association’s annual Lobby Day junket in 2016 that prompted her to contribute to RPAC.
This project represents a $600-million investment to build a five-story, 3.2 million-square-foot facility that will replace an active heavy mining operation with a dynamic advanced economic development project.
GUEST VIEWPOINT: Investing in Our Future: Supporting the Amazon Project as a Catalyst for Economic Growth
This project represents a $600-million investment to build a five-story, 3.2 million-square-foot facility that will replace an active heavy mining operation with a dynamic advanced economic development project.
Orange County stands at a crossroads. With rapidly evolving local and national market dynamics, we face a defining moment – we must invest in a future that delivers investment, jobs, and long-term benefits to the county and region.
The proposal to build a high-tech Amazon fulfillment center on the site of an existing gravel mining operation project on Route 6 in the Town of Wawayanda offers this exact opportunity. This project represents a $600-million investment to build a five-story, 3.2-million-square-foot facility that will replace an active heavy mining operation with a dynamic advanced economic development project. The project will create at least 750 permanent jobs and hundreds of local union construction jobs to build this advanced facility. In addition to the direct permanent and construction jobs, this project is also expected to create 997 indirect permanent and construction jobs—meaning local suppliers and businesses will experience growth opportunities as a result of this Amazon investment.
The context and history behind this project are critical to understanding its true potential. The site in question has already been approved by the town for a 927,000-square-foot traditional speculative warehouse. However, the Amazon development proposes a more innovative and efficient use of the land, with a smaller footprint of 652,000 square feet. This will house a cutting-edge, five-story facility dedicated to high-tech logistics and advanced supply chain operations, totaling 3.2 million square feet—bringing a higher level of sophistication and long-term sustainability that far exceeds the typical warehouse model, all while redeveloping an active mining operation on Route 6.
An often complicated but critical part of advancing economic development is the topic of incentives. Communities are competing for investment of this scale across the country—the competition is fierce and impactful. Incentives are a necessary tool to help attract job creation and investment in projects with alternative location options in other states with similar market access.
The Amazon project is applying for local incentives, including a PILOT (Payment in Lieu of Taxes) which phases in taxes over time, and an abatement on sales tax on materials used in constructing this facility.
Amazon qualifies for the Orange County IDA’s “Job Creation” PILOT, a 20-year tax program. Let me be clear - the PILOT will result in significant new revenues for the local community.
Over the course of the 20-year PILOT agreement, Amazon is projected to contribute approximately $90 million in new tax revenue to the town, county, fire and ambulance districts, and school district, equating to an average payment of $4.5 million annually. In comparison, without the project, these jurisdictions would receive just $4 million over the same period.
As we analyze this project in the context of public benefit versus value of incentives, the total benefits to the local and state community are approximately $860 million as compared to the “cost” of the incentives at $118 million, yielding a benefit-to-cost ratio of 7:1, meaning the benefits of the project outweigh the cost of the incentives by a 7X factor.
As we look toward the future, Orange County has an opportunity to be at the forefront of business growth and economic development. The proposed Amazon project in the Town of Wawayanda will redevelop an operational gravel mine, while delivering a minimum of 750 new permanent jobs and hundreds of local and Union construction jobs. It will deliver $90 million in new tax revenue to the local community over the life of the proposed PILOT and will position Orange County as a beacon for advanced economic development and growth.
For these reasons, we must stand behind this monumental project as a catalyst for economic and business growth in Orange County and the Hudson Valley.
About the author: Conor S. Eckert is the President & CEO of the Orange County Partnership in Goshen.
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.
For decades, community and state leaders have failed to harness the aspiration and boldness needed to break through barriers and build the future New Yorkers deserve.
This event will bring together major stakeholders to strategize how to realize Rockland’s housing potential while maintaining the character of existing neighborhoods.
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