Amazon opening first Colorado facility
in Aurora
E-commerce retailer plans to hire "hundreds" of
workers to staff new sortation center
POSTED:
04/25/2016 08:36:09 AM MDT37 COMMENTS| UPDATED:
3 DAYS AGO
Amazon is setting up
shop in Colorado
Amazon.com
has tapped the city of Aurora and the Majestic Commercenter to park its first Colorado
facility.
Located
5 miles south of Denver International Airport, the 452,400-square-foot facility
will be a sorting center, where sealed packages arrive and are then sorted by
zip code for delivery to local U.S. Post Offices.
"We
are hiring for hundreds of associates for our new package sortation center in
Aurora," Amazon spokeswoman Ashley S. Robinson confirmed in an e-mail on
Monday. She said the new facility is at 19799 E. 36th Drive in Aurora, also
known as Building 29 in Majestic Commercenter.
The
move comes two months after the Seattle-based online retailer began charging
Colorado residents sales tax on their purchases. It fueled speculation that the
company had established a business presence in the state.
In a
full-page ad in Sunday's Denver Post newspaper, Amazon said it was hiring
part-time fulfillment associates for its Aurora facility. The company also
created an online Denver job portal, which said
future employees would " sort, pack and
ship customer orders." The positions start at $13 per hour.
"Aurora's
location, workforce and business-friendly environment were key ingredients in
attracting in the world's largest e-commerce retailer to our city," Aurora
Economic Development Council president and CEO Wendy Mitchell said.
Robinson
clarified that these advertised jobs are only for the sorting center. While
hiring has begun, no opening date was available, she said.
The Majestic Commercenter is a 1,500-acre
business park that also houses hubs for FedEx and the U.S. Postal Service.
Majestic Realty last year began construction of Building 29, saying it expected
to complete the speculative warehouse and distribution center by Nov. 1, 2015.
After
getting stung by UPS
shipping delays during the 2013 Christmas season, Amazon began
opening intermediary facilities to better control the delivery process. Last
year, it also bought a
fleet of trailers to move packages between facilities, which
helps Amazon rely even less on FedEx, UPS and other carriers.
Amazon
also operates large fulfillment centers in more
than two dozen states scattered mostly along the coasts.
Since
late March, Amazon has announced plans to open at least three more fulfillment
centers, each creating 1,000 full-time jobs.
Those
include an 800,000-square foot facility near Kansas City in
Edgerton, Kansas; a 1 million-square- foot center in
Haslet, Texas, north of Fort Worth; and its seventh in California —
a 1.1 million-square-foot center in San Bernardino.
Sortation
centers tend to be
smaller, at around 200,000 to 300,000 square feet, according to
logistics consulting firm MWPVL.
But
they are also in cities that already have fulfillment centers.
In
Kent, Wash., an Amazon sortation center cut delivery
time by nine hours so customers could still get two-day
delivery if they ordered by 11:59 p.m., instead of the previous 3 p.m.,
according to a story in The
Seattle Times. It also enabled Sunday delivery.
Robinson
did not share whether the new Aurora site will also have a nearby fulfillment
center, as is the case for Seattle and 15 other sortation locations.
Amazon's
expansion into Colorado is "to better serve customers and this facility
will enable faster delivery time," Robinson said.
Amazon
also posted its first Denver-based job for a logistics manager in February. The
job required everything from implementing new technology platforms to having
the ability "to lift up to 49 pounds with or without reasonable
accommodation."
Several
more Denver jobs popped up on Amazon's careers page this month. Most are
tech-related and are part of Amazon Web Services, including solutions architect, DevOps cloud
architect and atechnical trainer.
Holly
Shrewsbury, a spokeswoman for the state's Office of Economic Development and
International Trade, confirmed that Amazon officials "engaged our office
to talk about tax environment and real estate options," she said. But she
added that Amazon did not receive any financial incentives to expand in
Colorado.
Last
November, Majestic Realty Co. acquired 530
acres to expand the business park. The park has 3.5 million
square feet in industrial space and the ability to hold 12 million square feet
in warehouse and distribution facilities.
At the
time, Majestic Realty executive vice president Randy Hertel said
"E-commerce is driving the commercial real estate industry in ways we've
not seen before. We're seeing greater demand in the 1
million-and-up-square-foot range with land requirements and tenant improvements
slightly different than the traditional warehouse and distribution
building."
Hertel
declined to comment Monday.
The
Denver industrial market saw "record levels of development" in the
first quarter this year, according to a report by CBRE, a commercial real
estate agency.
Approximately
4.4 million square feet of projects are in development, with more than half
located near the airport. Construction on industrial projects is 52 percent
greater than the previous peak of second quarter 2007. About 80 percent of the
activity is speculative, according to CBRE.
A major
change between Amazon and its Colorado customers began Feb. 1, when Amazon started
collecting sales tax in Colorado. It fueled speculation that the
company had established a business presence in the state.
The
states where Amazon operates fulfillment centers align with where the company
charges sales tax.
On Feb.
5, Amazon was issued a business license in Aurora and filed to collect sales taxes in that city on Feb. 8,
according to public filings.
The
company's move tax shoppers also came amid developments in 5-year-old lawsuit
involving aColorado law that
imposes reporting requirements on internet retailers that do not collect sales
taxes.
A federal
appeals court upheld Colorado's "Amazon Tax," which
requires retailers that do not charge sales taxes to track customers' purchases
in Colorado, report the taxes that should have been paid to the state and
advise buyers of their tax obligations.
However,
Amazon instituting sales tax collection may not be a
boon for Colorado. Tax revenue limits set by the Taxpayer's Bill of
Rights could result in most of the collections from Amazon having to be
refunded to taxpayers.
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