Amazon bringing first Oklahoma facility to OKC (http://www.okctalk.com/content.php?r=368-Amazon-bringing-first-Oklahoma-facility-to-OKC)

Construction has commenced on a 300,000 square foot Amazon 'sortation facility' in west Oklahoma City.


http://www.okctalk.com/images/pete/amazon1.jpg


Land has been purchased and site work has started on a 132 acre tract on the northeast corner of SW 15th and Council Road.

The property and building permit are in the name of Industrial Developers of Oklahoma of Tulsa which acquired the land earlier in 2017 for $1.5 million. The building permit value is listed at $12 million but does not include furniture, fixtures and equipment.

OKCTalk has learned from reliable sources this property will be leased back to Amazon and in fact the name on the permits reads “sorting facility”. Amazon is not specifically named on the plans which is typical of their real estate dealings.

On February 2nd, the State of Oklahoma announced an agreement whereby the internet powerhouse would start collecting sales tax on transactions made through its site and forward them accordingly. Besides the state coffers, Oklahoma’s cites, towns and counties will benefit from the move. The collections will begin on March 1.

It is unclear if the start of this project – the first physical Amazon presence in the state – is related, but the timing is closely correlated.

In 2014, Amazon announced plans to create sortation facilities which differs from a fulfillment center. Packages delivered to the sorting center will already be in sealed boxes, which employees will organize by zip code and forward to the U.S. Postal Service.

Fulfillment centers tend to be much larger, in the neighborhood of 1 million square feet and serve as warehouses for thousands of Amazon items with on-line orders being assembled and shipped via a massive shelf and conveyor system.


http://www.okctalk.com/images/pete/amazon2.jpg


The addition of a sortation facility in a market typically shaves almost a day off the delivery time and Amazon may at a future date use other transportation methods for the “last mile” of delivery, an industry term for the final leg of logistics to the direct consumer.

Most Amazon sort facilities employ 100 to 300 workers.

Our sources also indicate that Amazon is close to leasing 80,000 square feet for a small fulfillment center in Oklahoma City.

City staff have confirmed communication with a real estate broker who was believed to be representing Amazon in the marketplace.


http://www.okctalk.com/images/pete/amazonair.jpg

Yay! We matter to Amazon!

Is this where my delivery drones will be flying from?

^^^ i was wondering the same thing.

^
Hope so

Here is an interested aspect to this...

Governor Fallin had to know last month that Amazon was bringing facilities to the state, so the announcement of sales tax collection looked like some sort of shrewd deal she negotiated on behalf of Oklahoma but in fact that collection would be mandatory once they opened a physical operation here.

Amazon has not been working with the city on incentives so you can bet some are coming their way at the state level.

I drove by there Saturday and wondered what it was. Huge site they have scraped back.

At the very least, I hope this could do same day delivery with Prime on the more popular items. Perhaps maybe even the Amazon Fresh thing that delivers groceries...that would be nice.

Is this where my delivery drones will be flying from?

UPS recently tested a drone system.

http://abcnews.go.com/Business/ups-tests-launching-drones-trucks-equipped-battery-chargers/story?id=45650029

Here is an interested aspect to this...

Governor Fallin had to know last month that Amazon was bringing facilities to the state, so the announcement of sales tax collection looked like some sort of shrewd deal she negotiated on behalf of Oklahoma but in fact that collection would be mandatory once they opened a physical operation here.

Amazon has not been working with the city on incentives so you can bet some are coming their way at the state level.

I hope thats not the case, because you know incentives arent the reason Amazon wants a distribution center here. It'd be an unnecessary give away by the state.

Here is an interested aspect to this...

Governor Fallin had to know last month that Amazon was bringing facilities to the state, so the announcement of sales tax collection looked like some sort of shrewd deal she negotiated on behalf of Oklahoma but in fact that collection would be mandatory once they opened a physical operation here.

Amazon has not been working with the city on incentives so you can bet some are coming their way at the state level.

To be honest, we should have built the facility for them completely for free 5 years ago and given them $10M in their bank account.

We'd have recouped the incentive in non-paid use-taxes in, what, 8 months?

In other markets, Amazon has aggressively pursued incentives.

Since they have not been working with the City of OKC, I would be surprised if there was not some sort of deal at the state level.

Also, I suspect Amazon is setting up the same type of facilities in Tulsa it's just that no one up there has figured it out yet.

I've been a Prime member for awhile now, and it seems this past year they are a lot slower to ship, sometimes stuff even takes 3 days because they add a processing day in there, and I'd kind of slowed down shopping from there. Hopefully this takes care of the problem since I'm down the road from this.

I've been a Prime member for awhile now, and it seems this past year they are a lot slower to ship, sometimes stuff even takes 3 days because they add a processing day in there, and I'd kind of slowed down shopping from there. Hopefully this takes care of the problem since I'm down the road from this.

seems like they/UPS are intent on outsourcing the last mile to usps. i'm sure that saves them a pretty penny on shipping costs, but i'd say they're bordering on breach of contract w/ prime members. then again, i'm sure they've modified the user agreements to protect themselves

I'm wondering how this sorting center will fit into the greater PrimeAir plans. Amazon has begun to fly it's own bulk shipments from major distribution centers to sorting centers in various large cities. These cities are much larger than OKC, but I wonder if they eventually plan to use OKC as the sorting center for most of Oklahoma. DFW would be the closest large city, but it is still quite a drive from DFW, especially if they are wanting to increase Tulsa delivery times.

https://i.gyazo.com/06d2608d002c8e2422e8ce8fcd0d53ac.png

This is their current in-house air transportation network, obviously some huge gaps. I see DEN and SLC coming on urgently as it's a huge gap in their network.

https://i.gyazo.com/c494a5cd6bfe7284d555f54bada5e39e.png

Current 130 mile radius of currently served airports.

Same map with OKC, which would improve delivery times for OKC, Tulsa, western and North Oklahoma, and Wichita (just outside the window)

https://i.gyazo.com/0a7cccc9494cf43d78d4e5744e29a944.png

It looks like it is in a good location in relationship to our airport.

seems like they/UPS are intent on outsourcing the last mile to usps. i'm sure that saves them a pretty penny on shipping costs, but i'd say they're bordering on breach of contract w/ prime members. then again, i'm sure they've modified the user agreements to protect themselves

I've definitely seen an increase in surepost shipping, but I'd still say mine is 50/50. I really wish they'd cut it out, cause our postal lady is horrendous. At least a couple of times a month she delivers mail to the wrong house or forgets a package. I've called numerous times to gripe that they say I was unavailable even though it says leave at residence and it's because she forgot it. We actually have a neighborhood group and it's littered with posts of hey I got your mail, I can bring it over or you can come get it. So honestly I'd welcome the drone packages if that were possible.

I've definitely seen an increase in surepost shipping, but I'd still say mine is 50/50. I really wish they'd cut it out, cause our postal lady is horrendous. At least a couple of times a month she delivers mail to the wrong house or forgets a package. I've called numerous times to gripe that they say I was unavailable even though it says leave at residence and it's because she forgot it. We actually have a neighborhood group and it's littered with posts of hey I got your mail, I can bring it over or you can come get it. So honestly I'd welcome the drone packages if that were possible.

We must live in the same neighborhood.

seems like they/UPS are intent on outsourcing the last mile to usps. i'm sure that saves them a pretty penny on shipping costs, but i'd say they're bordering on breach of contract w/ prime members. then again, i'm sure they've modified the user agreements to protect themselves

If an order isn't delivered when Amazon says it will be, the member agreement entitles you to one free month of Prime, up to a full year. Just contact customer service about it. Here's more information about their policy (along with the script I follow when e-mailing CS about it): http://dealnews.com/features/How-to-Get-1-Month-of-Amazon-Prime-for-Free/938946.html

If an order isn't delivered when Amazon says it will be, the member agreement entitles you to one free month of Prime, up to a full year. Just contact customer service about it. Here's more information about their policy (along with the script I follow when e-mailing CS about it): http://dealnews.com/features/How-to-Get-1-Month-of-Amazon-Prime-for-Free/938946.html


I can't speak for Chuck, but I know the date Amazon says is almost always the day it comes, the problem is Amazon gives themselves an extra day. It's 11am as I'm typing this, and my guess is if I went and found a Prime item with 2 day shipping, it's guarantee date would be Saturday instead of Friday. It's possible it still gets here Friday, but it seems as though they've given themselves some leeway because of using the crappy USPS for final delivery. It's definitely hit or miss, so what I've been doing is just telling myself it's probably going to be 3 days, and if I need it any sooner pay for the overnight shipping, which I hardly need. Not a huge deal but I'd imagine this sorting facility is going to help with that, as well as bring in tax dollars.

I agree on Denver and Salt Lake, but I see them opening in Omaha, KC, or Nashville too. They need something between us and Indiana/Carolina's.

The plan to place an 80,000 SF fulfillment center here tells me we are a few years away from a full-scale center, which average about 1 million SF.

I actually requested Amazon to not use UPS for my orders because not a single one sent from Amazon via UPS was ever delivered on time. So I could order on Wednesday, and UPS could claim it's going to be delivered Friday, but then it isn't, and of course it also doesn't come Saturday because the extra charge for Saturday delivery wasn't paid, and they don't deliver on Sundays, so I get it Monday. Whereas with USPS, sure, Amazon might be padding it a day, but when they say it will be delivered Saturday, it gets delivered Saturday (if not, as you note, Friday). I've even had Amazon packages delivered on Sunday before.

So to me, delivery via UPS means "You'll get it. Eventually. Probably." Whereas USPS means "When we say it will be there is when it will be there, unless we can get it there faster." This is a drastic switch from as recently as just a couple years ago. The joke used to be USPS's slogan should be "When it absolutely, positively has to be there someday."

I agree on Denver and Salt Lake, but I see them opening in Omaha, KC, or Nashville too. They need something between us and Indiana/Carolina's.

They plan on adding 40+ 767's to the fleet. I think there's plenty of expansion location but Denver and SLC are the most urgent. I think if OMA, OKC, sized cities etc. are on the radar, they are probably on a 2-4 year time span.

The plan to place an 80,000 SF fulfillment center here tells me we are a few years away from a full-scale center, which average about 1 million SF.

So would they have enough land there on Council to add that footage or would they acquire and build elsewhere? Current location seems like a good spot, good interstate access plus airport access like someone mentioned.

So would they have enough land there on Council to add that footage or would they acquire and build elsewhere? Current location seems like a good spot, good interstate access plus airport access like someone mentioned.

No, would not have enough land near the sortation facility.

1 million square feet is like the size of Quail Springs Mall and those big fulfillment centers employ over 1,000 people.

No, would not have enough land near the sortation facility.

1 million square feet is like the size of Quail Springs Mall and those big fulfillment centers employ over 1,000 people.

Alright thanks for the comparison. I know there is still quite a bit of land over there on Council that backs up to the interstate North of where they are going, so wasn't sure if they were maybe going to try and acquire that as well. I'm assuming they'd keep both facilities?

Yes, both facilities are completely separate in function and in location.

And remember, the 1 million SF at a fulfillment center has to be all on one level. The shelving and conveyor systems are stacked high but the ground level has to have the entire 1 million SF.

BTW, 1MM SF of building is 23 acres all under one roof!! That's over 17 football fields. Absolutely massive.

Yes, both facilities are completely separate in function and in location.

And remember, the 1 million SF at a fulfillment center has to be all on one level. The shelving and conveyor systems are stacked high but the ground level has to have the entire 1 million SF.

BTW, 1MM SF of building is 23 acres all under one roof!! That's over 17 football fields. Absolutely massive.

Wow! Amazon puts a new meaning in go big or go home.

if Amazon operates their own fleet, could this have a positive impact on our airport?

if Amazon operates their own fleet, could this have a positive impact on our airport?

Nothing noticeable. At most it would be 2 flights a day, more likely to be 1. I don't think it is in their plans unless this center also plans to serve all of Northern Oklahoma and Tulsa. There simply isn't the volume from OKC alone to support a flight.

Yes, both facilities are completely separate in function and in location.

And remember, the 1 million SF at a fulfillment center has to be all on one level. The shelving and conveyor systems are stacked high but the ground level has to have the entire 1 million SF.

BTW, 1MM SF of building is 23 acres all under one roof!! That's over 17 football fields. Absolutely massive.

For a very close by comparison, the Lucent plant across I-40 is right at 1 million square feet. The amount of parking/asphalt space you need, is really what dictates whether it can fit. Meaning, the number of poeple employed there at a time. Compare Lucent with it's 3-4 thousand employees, with Amazon and the asphalt footprint for Amazon can be smaller.

Also, when you think of football fields, try not to think of anything but the actual field. Most people start thinking about a track or stadium footprint too. A field by itself isn't really all that big.

So, no the lot isn't big enough for a full million, but they can still get a lot more out of the lot than what's going in now.

^

And more than employee parking, you need space for all the trucks and trailers that come in and out of these places.

Very different than a manufacturing plant.

When should construction start on this facility?

They are really going to have to get the Council & I-40 intersection fixed up for this. It's already horrible and I can't imagine it getting any better with the additional traffic to/from this facility. Something like they've done at Morgan road would be awesome.

They are really going to have to get the Council & I-40 intersection fixed up for this. It's already horrible and I can't imagine it getting any better with the additional traffic to/from this facility. Something like they've done at Morgan road would be awesome.
Agreed. That intersection is terrible!

They are really going to have to get the Council & I-40 intersection fixed up for this. It's already horrible and I can't imagine it getting any better with the additional traffic to/from this facility. Something like they've done at Morgan road would be awesome.

Agree 100%. They re-did Council going south from there over the past year or so, but the portion basically from the river to Reno on Council is horrendous. Maybe Amazon being built will get this on someone's radar.

When should construction start on this facility?

See post # 7. It started last month.

Hate to be a Debbie Downer, but I don't see any work being done on Council because of this. The official party line will be "just use the turnpike when it is built". The response from truckers will be "we're not paying", and nothing will happen.

And honestly, to an extent, that answer isn't completely wrong. If (in the case of Amazon) trucks are going from the airport to the distribution center, they could tear up the entire Reno/Council intersection for all they care, it won't be used by them.

That said, for the sake of OTHER warehouses that might want to go into that area, yes, something should be done sooner rather than later. Just because Amazon and Hobby Lobby might not need ready access to I-40 doesn't mean others won't.

It is really bad. And the design of the entire southern half needs to be re-evaluated to something that isn't totally stupid like it is now. The surface is so bad that it actually scrapes the bottom of some cars!!!!

Seems like a good project for the 2017 GO Bond. I hope y'all went to a session and let those folks know before the end of the public engagement period (2/28), but if not definitely send to your city council person while they still have possible influence.

The plan to place an 80,000 SF fulfillment center here tells me we are a few years away from a full-scale center, which average about 1 million SF.

I just got to thinking about this. Are you sure 80,000 sq ft is the right number? We have an 80,000 sq ft warehouse and its pretty small. I think its 10 loading docks per side(Maybe 8).

I just got to thinking about this. Are you sure 80,000 sq ft is the right number? We have an 80,000 sq ft warehouse and its pretty small. I think its 10 loading docks per side(Maybe 8).

Yes, I'm sure 80,000 SF is the right number.

I just got to thinking about this. Are you sure 80,000 sq ft is the right number? We have an 80,000 sq ft warehouse and its pretty small. I think its 10 loading docks per side(Maybe 8).


Correct an 80k sq ft warehouse is not a huge warehouse.

Yeah my company's building is 55Ksq/ft so it interesting that Amazon's is only 30% bigger. I wonder if it's "just the beginning" of a bigger complex down the line...

I hope thats not the case, because you know incentives arent the reason Amazon wants a distribution center here. It'd be an unnecessary give away by the state.

It would also be an interesting thing to subsidize. Yes, Amazon employs a lot of people, but the net effect is a loss when loss of retails jobs and local retail establishments due to amazon is factored in. They also have a, let's just say, less than exemplary reputation when it comes to treatment of their warehouse employees.

Then again, it's not going to change and I guess the laid off retailers as an effect of Amazon need to work somewhere, so maybe that's just what it's come to, but subsidizing Amazon is pretty much like subsidizing Wal-Mart. Of course, that's not unprecedented, but still seems like misguided policy when the big picture is factored in. I guess what I'm saying is, if the result is a loss of local businesses and a net loss in retail jobs, let them pay for it.

Yeah my company's building is 55Ksq/ft so it interesting that Amazon's is only 30% bigger. I wonder if it's "just the beginning" of a bigger complex down the line...

I'm sure this is the case.

Just a small fulfillment center to help them get started here.

When the time comes, their purpose-built centers measure in the millions of SF.

My understanding is this isn't to be used as a warehouse per se, as nothing will be stored here for any length of time, but a very temporary holding center for packages to be turned over to the final deliverer. If once a day USPS, UPS, FedEx, and any others are going to be picking up the packages, you really don't need much space. And if the space available DOES start to get tight, just have (insert carrier here) pick up more than once a day. I don't know the exact area this will cover, so I don't want to say "packages destined for Oklahoma" and have it turn out to just be the metro area, but I'm comfortable saying packages headed for Montana are never going to see this building.

My understanding is this isn't to be used as a warehouse per se, as nothing will be stored here for any length of time, but a very temporary holding center for packages to be turned over to the final deliverer. If once a day USPS, UPS, FedEx, and any others are going to be picking up the packages, you really don't need much space. And if the space available DOES start to get tight, just have (insert carrier here) pick up more than once a day. I don't know the exact area this will cover, so I don't want to say "packages destined for Oklahoma" and have it turn out to just be the metro area, but I'm comfortable saying packages headed for Montana are never going to see this building.

We are talking about 2 different things.

1. 300,000 SF Sortation Facility under construction at Council & SE 15th
2. 80,000 SF Fulfillment Center in a leased facility nearby

Please re-read the article in the original post for further clarification.

We are talking about 2 different things.

1. 300,000 SF Sortation Facility under construction at Council & SE 15th
2. 80,000 SF Fulfillment Center in a leased facility nearby

Please re-read the article in the original post for further clarification.

Excellent! Thanks for the pointer, Pete. I either failed to parse that part when originally reading it, or forgot it. Since it was more than 10 minutes ago...probably forgot...

I don't know why everyone thinks this is going to be so amazing. These are just going to replace local jobs with other crappier local jobs and maybe even reduce the workforce. Amazon runs their warehouses with low-paying virtually contract labor. You are getting amazon supply chain develop, web services or site development staff because frankly they aren't coming to state where John Bennett is a legislator and Mary Fallin is governor. Let's all clap.

I don't know why everyone thinks this is going to be so amazing. These are just going to replace local jobs with other crappier local jobs and maybe even reduce the workforce. Amazon runs their warehouses with low-paying virtually contract labor. You are getting amazon supply chain develop, web services or site development staff because frankly they aren't coming to state where John Bennett is a legislator and Mary Fallin is governor. Let's all clap.

They are here for a simple reason. For the collection of online sales tax which started March 1, 2017. They had to have a physical presence in state for the state to be able to collect. There HQ is in Seattle, where the majority of back office staff will remain.

This happened under the Fallin regime.

As much as Fallin would love to take credit, she had little if anything to do with it, and it's quite the opposite. They're not here so they can collect local tax, they are collecting local tax because they are now here.

I don't know why everyone thinks this is going to be so amazing. These are just going to replace local jobs with other crappier local jobs and maybe even reduce the workforce. Amazon runs their warehouses with low-paying virtually contract labor. You are getting amazon supply chain develop, web services or site development staff because frankly they aren't coming to state where John Bennett is a legislator and Mary Fallin is governor. Let's all clap.

They tend to start the pay for part time and full time employees at their warehouses and sortation facilities at $11-12 an hour. Not great, but it's entry level work, no experience necessary. Full time employees get health insurance from day one, and employee discounts and tuition assistance and paid holidays and other benefits. A couple hundred new jobs paying well over minimum wage is nothing to sneeze at.

And that's not counting the additional property taxes from the facilities, as well as the revenue from construction and such.

My guess about OKC Petro's comment is that he/she was referring in some way to the structural changes in the economy. Amazon in the aggregate is taking business away from local retail. And it's not unique to OK and it's not OK's fault. It's a structural change in the economy. Amazon will employ a couple hundred people at $12/hour and at the same time, over the next few years, a few dozen local stores will close due to the "Amazon effect." The fact is it will ultimately be a loss to the city over time. I mean it's fine that Amazon is in OKC instead of Tulsa or Lawton or Enid but let's not pretend that ultimately it's a "net plus" to our economy.

I feel that Amazon competes with people who were only going to look on the web anyway. I doubt this will have much negative effect on local retailers, as a DC will only really be improving delivery times for Prime customers, it could be argued that those customers are not even local retailers customers to lose.

Catch22, I appreciate your thoughts but I will tell you just this as an anecdote. I have never thought about anything more than what makes sense here.

I'm sorry, I have no idea what that last post by me meant. I'm sure I had something in mind when I wrote it but it doesn't make sense in the light of day. Sorry. It was time for bed when I wrote that!

My guess about OKC Petro's comment is that he/she was referring in some way to the structural changes in the economy. Amazon in the aggregate is taking business away from local retail. And it's not unique to OK and it's not OK's fault. It's a structural change in the economy. Amazon will employ a couple hundred people at $12/hour and at the same time, over the next few years, a few dozen local stores will close due to the "Amazon effect." The fact is it will ultimately be a loss to the city over time. I mean it's fine that Amazon is in OKC instead of Tulsa or Lawton or Enid but let's not pretend that ultimately it's a "net plus" to our economy.
Kinda playing devil's advocate here, but most of the stuff I buy on Amazon is stuff I would've bought at Walmart or some other large retailer. Or I buy stuff that is not readily available at other places. I know that not everyone has my buying habits but it seems to me that Amazon is more of a threat to Walmart than to local stores. But I could be wrong.

Kinda playing devil's advocate here, but most of the stuff I buy on Amazon is stuff I would've bought at Walmart or some other large retailer. Or I buy stuff that is not readily available at other places. I know that not everyone has my buying habits but it seems to me that Amazon is more of a threat to Walmart than to local stores. But I could be wrong.

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