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Jon Collins

Amazon explores distribution center in Shakopee that could employ 1,000

An Amazon.com distribution center
This 800,000-square-foot distribution and fulfillment center warehouse for Amazon.com is located in Goodyear, Ariz. It's similar in size to one being considered in Minnesota.
Ross Franklin | AP 2009

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The online retailer Amazon.com has asked for tax breaks from the city of Shakopee to build a warehouse complex that could employ about 1,000 workers. It would be Amazon's first major distribution center in the state.

A tax increment financing plan that was drafted last week asks for as much as $6.4 million in tax incentives to build a 820,000-square-foot warehouse on Shenandoah Drive south of Highway 101. The proposed tax increment financing district would cover 63 acres and would stay in place until the end of 2025, according to the document.

"Due to the high costs of investment for the proposed development, including site improvements and infrastructure costs incurred by the developer in conjunction with development of the project, the developer has stated that the project as proposed would not occur without the financial assistance provided by the City," according to the tax increment plan.

Scott County property records show the parcel of land is owned by United Properties, which is owned by the Pohlad family, who are also part of the group planning to build a Major League Soccer stadium in the North Loop in Minneapolis.

Although the plan states that there are no construction agreements yet, the company anticipates that construction could occur starting in 2015 and be completed by the end of 2016. About 85 percent of that space would be used as a warehouse and less than 15 percent would be used for offices.

There have been signs that Amazon was considering facilities in Minnesota. Companies that have a physical presence in Minnesota must charge customers sales tax, and Amazon started charging sales tax to Minnesota customers late last year.

Media contacts for both Amazon and United Properties did not immediately respond to requests for comment on the development.

The city's Economic Development Advisory Commission will hear the plan on April 29. There will be a public meeting about the plan at the full Shakopee City Council on May 19.