How Amazon Is Helping Shape the Future of 5 States
Amazon’s Economic Development Is Growing: Good News for the Housing Market
Amazon has grown from an online bookseller to the largest Internet retailer in the world. And just recently, the company has turned its eye to the grocery business, with its aim of acquiring Whole Foods for a jaw-dropping $13.7 billion.
It can be said with some confidence that Amazon’s multi-level sales strategy is helping the company reach heights never thought imaginable. But, that’s not the only thing that’s driving Amazon’s growth.
The company’s economic development team has quietly worked to secure millions of dollars in tax credits and incentives to help Amazon reach its goal of building new fulfillment and distribution centers in targeted regions, much to the delight of job seekers and home buyers in those areas. Here are five states that are currently benefiting from Amazon’s growth.
Illinois recently negotiated three separate deals with Amazon for the cities of Aurora, Monee, and Joliet. The deal included the building of new facilities in each of the cities, and the creation of more than 7,200 jobs in exchange for more than $112 million in Economic Development for a Growing Economy tax.
The City of Aurora offered the world’s largest online retailer an additional $400,000 property tax abatement as incentive. And, the impact on the state’s housing market has certainly been positive, with 3.8% more homes sold in May 2017 compared to May 2016, and at a median price increase of 8.3%.
Connecticut is another state that’s being positively impacted by Amazon’s expansion. The company is building a huge 855,000 square-foot state-of-the-art fulfillment center in New Haven where it is expected to result in the hiring of more than 1,800 new full-time employees.
As an incentive, the state is providing Amazon with $15 million in Urban and Industrial Sites Reinvestment Tax Credit, and a sales and use tax exemption of up to $5 million on equipment and construction materials. But that’s not all: if Amazon surpasses initial job targets, the state will be throwing in an additional $5 million in credits, making it a win-win for all involved.
Among all major American cities, few have suffered as much as Baltimore since the recession. But, Amazon is helping to bring the city and the state of Maryland back. The company has pledged to build a brand new one million square-foot warehouse in Baltimore, which will, in turn, create over 1,000 jobs in the area.
In return, Amazon is set to receive over $40 million in tax credits (including $35.3 million in Enterprise Zone Tax Credits), $5.5 million in One Maryland tax credits, $1.7 million in estimated tax credits for job creation, and a $1.25 million forgivable loan. Amazon’s job creation will no doubt have a positive impact on both Baltimore’s economy and housing market.
Amazon recently wrapped up construction on a $141 million distribution center in Kenosha, Wisconsin. The project resulted in more than 1,100 new jobs for the local area, with Amazon receiving $7 million in Enterprise Zone Tax Credits from the Wisconsin Economic Development Corporation. Thanks to the boost in the economy, median list prices and sold prices have been climbing steadily since December 2016.
Pennsylvania has played a major part in Amazon’s success, mostly because of the millions in state aid and tax forgiveness that it provides the Seattle-based company. Currently, Amazon has 13 fulfillment and distribution centers in PA, and development is not stopping there.
With an employee count of over 8,200, the company is set to hire thousands more as it continues to build even more centers. In fact, according to stats, Amazon is on pace to have over 13,000 employees in the Keystone State in the coming years.
That level of growth means that Amazon will soon have more employees in Pennsylvania than Comcast, Merck, Vanguard, and Wawa. And, this means those cities in PA where Amazon has fulfillment centers can expect an influx of job seekers – very exciting news for the state’s real estate market, which has been struggling to rebound since the market’s crash.
With Amazon’s reach extending through a large portion of the above states, now is the perfect time to start looking for a new home in these areas if you’re looking to relocate and secure a new job with the company.
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