PROJECT UPDATE: Massive $607 Million Amazon Project in Orange County in Peril
On June 12, the Zoning Board of Appeals rejected an application for a height variance on the project by a 4-0 vote.
On June 12, the Zoning Board of Appeals rejected an application for a height variance on the project by a 4-0 vote.
WAYWAYANDA—The plan to develop a 3.2-million-square-foot Amazon robotic fulfillment center off Route 6 in Slate Hill in Orange County was dealt a major blow on Thursday night when the Town of Wawayanda’s Zoning Board of Appeals voted unanimously to reject a needed height variance.
The $607-million project proposed by a partnership of Scannell Properties of Indianapolis, IN and Amazon Services, LLC, is considered to be among the largest ever private investment projects in Orange County. The plan calls for the construction of a five-story, 3.2-million-square-foot Amazon robotic fulfillment/distribution center in Slate Hill. The project faced critical review earlier this week by the Wawaynada Planning Board, Zoning Board of Appeals and the Orange County Industrial Development Agency.
At press time it is not known if the project can or will move forward at the site. Scannell Properties, the property owner, had no comment on the ZBA’s denial vote. A response from Amazon on its plans was not received as yet. Proponents of the project have included some area politicians, business and building trades organizations that cited the tremendous economic impact it would have on the area. Opponents have included some area politicians, as well as neighborhood organizations, who cited traffic and environmental concerns as well as opposition to incentives to the e-commerce giant.
The Wawayanda Planning Board met on Jan. 11 and issued a negative declaration on environmental impact, which was critical for the project to move forward. However, on June 12, the Zoning Board of Appeals rejected an application for a height variance on the project by a 4-0 vote. Mid Hudson News first reported the ZBA’s denial of the height variance.
On June 10, the Orange County Industrial Development Agency held a public hearing on the proposed incentives for the Amazon project at the Minisink Middle School.
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 said that he fully expected 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.
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.
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.
Approximately 250 people attended the IDA public hearing session. Local community groups and some politicians, including New York State Sen. James Skoufis and Democratic County Executive candidate Michael Sussman spoke against the incentives, stating that the e-commerce giant does not need the incentives for the project.
Other politicians, including local State Assemblyman Karl Brabenec, Brian Maher, business groups including the Orange County Chamber of Commerce, the Orange County Partnership, the Hudson Valley Economic Development Corp., the Construction Contractors Association, as well as a host of representatives of the area’s building trades spoke in favor of the incentive package on the table for Amazon.
In addition to the hundreds of construction jobs, the members of the building trades noted that Amazon would pay approximately $90 million in taxes over the 20-year PILOT, while the current property owner, which leases the parcel as a working mine, would pay $4 million over the next two decades in taxes.
Wawayanda Supervisor Denise Quinn, in written testimony submitted to the Orange County IDA, stated that she has requested a meeting with Amazon representatives to renegotiate the current proposed PILOT.
While noting that the current PILOT agreement would require Amazon to hire local construction workers to build the project (the IDA incentives require 85% local hires), Ms. Quinn stated: “We know that in the absence of this PILOT agreement, Amazon, as of right, would be entitled to various New York State tax incentive programs worth millions, without having to hire local employees and purchase materials locally. However, after looking at the current 20-year PILOT being offered, I believe our community can do better. While we respect the Orange County IDA’s process and understand this PILOT’s schedule is available as part of the Uniform Tax Exemption Policy (UTEP), I would like to formally request a meeting with Amazon representatives to discuss a deviation from the current PILOT agreement being proposed.”
She continued, “I would like to have this conversation in good faith to explore other options. I believe we need to do better than what is in front of us. It is my hope we can come to an agreement that preserves this project and its potential positive impacts.”
Editor’s Note: This is a developing story. Please check back for further updates.
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