Amazon Grabs $3.9M Incentive for Fifth Ohio Fulfillment Center

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By Alex Ebert

Ohio is delivering another $3.9 million in tax incentives to Amazon for the company’s fifth fulfillment center in the Buckeye State.

The Ohio Tax Credit Authority on Oct. 31 approved a 1.35 percent, 10-year job-creation credit for the projected 1,000 jobs Amazon.com Inc. says it will bring to Euclid, a west-Cleveland suburb on the shores of Lake Erie. The credit is based on the company’s projections of $27.7 million in annual payroll, and could be higher or lower depending on how many people actually work at the facility.

That incentive is the same provided to Amazon’s other Cleveland-area facility in the Village of North Randall. Both state agreements are bolstered by local incentives, and the Euclid facility will receive the city’s 100 percent, 15-year property tax abatement in return for redeveloping a defunct shopping mall.

Amazon has received at least $123 million in incentives from Ohio to develop its fulfillment and data centers in-state.

Local Impact

Local leaders praised the second Amazon development in the Cleveland area, saying the center would bring much needed jobs.

“It’s very exciting to support a second Amazon distribution center, creating another 1,000 jobs for residents in the county, in addition to the 2,000 jobs at the Randall Park Mall site,” Armond Budish, Cuyahoga County executive, said in a statement. “These newly announced Amazon projects provide two great advantages: 3,000 new jobs and valuable repurposing of two vacant malls.”

Amazon already employs more than 4,500 full-time employees at its other fulfillment centers in Ohio. But according to the incentive agreement, those jobs aren’t necessarily high-paying.

If the $27.7 million in payroll estimate for the Euclid center is averaged for the 1,000 employees, each would earn $27,000 annually. According to U.S. Census statistics, the median household income in Cuyahoga County, where both centers reside, was $44,190 in 2015.

To contact the reporter on this story: Alex Ebert in Columbus, Ohio at aebert@bna.com

To contact the editor responsible for this story: Cheryl Sanez at csaenz@bna.com

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