Amazon eyes San Marcos for $191M fulfillment center


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COVER: Amazon’s 1.25 million-square-foot fulfillment center in Schertz.

by BRAD ROLLINS

Amazon.com executives are considering locating a $191 million fulfillment center on East McCarty Lane in south San Marcos, a project that would carry the promise of at least 350 full-time jobs, according to terms negotiated between the municipal government and the company.

On Tuesday, the San Marcos City Council will consider an economic development incentive agreement under which the city would forgo 40 percent of property taxes on its real estate for ten years and 85 percent of property taxes on equipment and inventory, also for ten years. San Marcos would also rebate, for 20 years, between 15 percent and 85 percent of its two-cent sales tax, according to a sliding scale tied to gross sales shipped out of the location.

The Seattle-based company will employ a minimum of 350 full-time positions for the duration of the agreement. Amazon has an option to renew the property tax portion of the agreement for an additional five years if it employs at least 1,000 full-time workers for five of its first 10 years in operation.

The company will invest $60 million in site preparation and construction of a 855,000-square-foot building on 101 acres located in the 1300 block of McCarty Lane. Company officials say they will spend an additional $131 million furnishing and equipping the fulfillment center and stocking it with inventory.

Under the agreement, Amazon will begin construction before Dec. 31 this year and begin operations by Jan. 1, 2017.

The San Marcos City Council last week approved initial rezoning of the property from general commercial to heavy industrial requested in the name of Jones & Carter Inc., a San Antonio-based engineering firm.

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