State officials aren't yet willing to divulge the job creation tax incentives they're giving Amazon to build a massive new fulfillment center in Akron and another near Toledo.
But in the past three years, Ohio has delivered more than $15.8 million in tax credits to lure the online retail giant to communities across the state, according to state figures.
Amazon says its nearly 2.7 million-square-foot, four-story fulfillment center on the grounds of the former Rolling Acres Mall will create about 1,500 jobs. The southwest Akron facility could be open in late 2020.
The Akron and Rossford fulfillment centers will be the seventh and eighth such facilities in Ohio as the e-commerce company works to meet growing demand and offer such services as one-day and same-day delivery.
In addition to the yet-to-be-released incentives from the state, the city of Akron is offering Amazon a 30-year tax rebate to locate at the former mall site. Under the deal, the city will divert future taxes on the improved property into a special fund, out of which Amazon will be reimbursed the more than $17 million paid to buy the land plus any acquisition and demolition costs.
In exchange, Amazon agrees to maintain $30 million in annual payroll in Akron for 10 years. Akron has a 2.5% income tax rate, meaning the city would get at least $750,000 annually in payroll taxes.
Ohio job creation tax credits over the last three years for other Amazon facilities include:
• Twinsburg: 150 full-time-equivalent jobs at a 248,000-square-foot facility in Cornerstone Business Park, the site of the former Chrysler stamping plant. Payroll was projected at $3.8 million. Tax credits approved in 2016 total $270,000 over six years.
• North Randall: 2,000 full-time-equivalent jobs for an 855,000-square-foot facility at the former Randall Park Mall site. Payroll was projected at $55.4 million. Tax credits approved in 2017 total $7.8 million over 10 years.
• Euclid: 1,000 full-time-equivalent jobs in a 655,000-square-foot center on the site of the former Euclid Square Mall. Payroll was projected at $27.7 million. Tax credits approved in 2017 total $3.9 million over 10 years.
• Monroe: 1,000 full-time-equivalent jobs in a 1.3 million-square-foot center near Dayton. Payroll was projected at $26.7 million. Tax credits approved in 2017 total $3.8 million over 10 years.
Seattle-based Amazon estimates it currently has more than 8,500 Ohio employees, making it one of the state’s largest employers. The addition of 1,500 Akron and 1,000 Rossford jobs would bring that total to more than 11,000.
Jim Mackinnon covers business. He can be reached at 330-996-3544 or email@example.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ