Amazon Fulfillment

[Pete]

The money is being borrow for economic development (which was voted and passed by the public). No matter if it goes to this project or not This type of deal is why we have that money

I was told the City has to go out and borrow this money, which adds expense to the taxpayer.

[BoulderSooner]

I was told the City has to go out and borrow this money, which adds expense to the taxpayer.

From the last 2 lines of your post #129

This is from. GOLT proceeds and/or investment proceeds.


The GO bonds are being sold because we(OKC) voted for them. That money will be borrowed either way

[Pete]

From the last 2 lines of your post #129

This is from. GOLT proceeds and/or investment proceeds.


The GO bonds are being sold because we(OKC) voted for them. That money will be borrowed either way

I will get more info on this and post it later.

[warreng88]

OKC trust approves incentives for Amazon center

By: Brian Brus The Journal Record May 15, 2018

OKLAHOMA CITY – The Oklahoma City Economic Development Trust on Tuesday approved incentives totaling $1.7 million for Amazon.com in exchange for the creation of jobs and capital investment in an order-fulfillment center near Will Rogers World Airport.

If approved by the City Council, the money will come from general obligation limited tax bond debt OK’d by city residents years ago. Unless the retailer creates at least 53 new jobs over five years, the city will not release the incentive. The estimated average annual wage for the new jobs is $60,000 in the first year.

Those 53 jobs are considered new-to-market, but the company has promised to hire a total of 1,750 people overall, with a total payroll of $11.5 million in the first year, growing to $45.9 million by the second year. In return, the company is projected to create sales tax and property tax revenue for city operations worth $2.6 million for the first two years and a total economic impact of $9.5 million for the same period.

The fulfillment center will be part of Amazon.com’s nationwide production distribution network with the goal of same-day service across as much of the country as possible.

Morgan Harris, owner-operator of the Green Bambino baby-goods retail store at 5120 N. Shartel Ave., asked the trust to reconsider paying an industry giant that competes directly with Oklahoma City operations such as hers.

“Does Oklahoma City really need to give millions of dollars to a company that’s coming here anyway?” Harris asked. “Is there a way the trust could consider using this $1.7 million to help economically develop small businesses, provide training for small businesses, to make sure they have the customer service know-how, that they have all the technology they can have?”

Responding to public complaints of non-transparency in municipal deal-making, Chairman Larry McAtee said the trust had to keep negotiations quiet – under the code name “Project Star” in public records – because Amazon.com required it. Neither he nor company representative Tom Florino elaborated on why a non-disclosure agreement was necessary.

Amazon.com contacted the Greater Oklahoma City Chamber just six months ago with interest in building a center in the area, said chamber spokesman Richard Clements.

Florino said there are not many states left where Amazon.com hasn’t already developed its infrastructure, and each city has its own unique advantage, so the company was highly interested in Oklahoma City.

“This is the latest expansion in an established pattern or continual growth for the company,” City Manager Jim Couch said in a memo to the trust.

[Pete]

I've said this before but it bears repeating: Once the Alliance submits these incentive packages to receive "approval for negotiation" they are a completely done deal, and the Economic Development Trust and City Council have provided approval 100% of the time and the deal ends up being exactly as submitted.

So, the real news is when the deal is first submitted to the EDT and the rest is just formality. It's really that simple.

[Pete]

Here is the first look at the site plan; building permit application has already been filed:

[Zuplar]

If this is anything like the sortation project I bet it goes real fast. I'll give them that at least they get it done and over with instead of dragging out construction and dealing with all those horrors.

[Pete]

In their presentation to the OKC Economic Development Trust their rep said they hope to break ground in June and be operating by June 2019.

[s00nr1]

Just not a fan of that particular location considering what Lariat Landing was initially being visualized as. I wonder if they've spoken with the Airports trust about expanding taxiway over to the new facility for Prime Air?

[shawnw]

been discussed upthread (short answer "no")

[OUman]

Folks, Prime Air's main (and only) hub is at the Cincinnati Northern Kentucky International Airport. Prime Air (now known as "Amazon Air") has no plans to establish hubs/bases other airports, let alone OKC. This is not a facility that will require Prime Air operations anyway, this is going to be a land-based ops only facility (shipping will be done by trucks). Thus, there is no need for airside connections.

If at some point Amazon Air does start flying to/from OKC, OKC will likely be a spoke in its network. My guess is it will use the air cargo facility (the new one) that will be built after it gets relocated when the new east terminal expansion gets built. I'm sure catch will have more insight into this.

[ChrisHayes]

Just drove by and they've already begun scraping ground and staging construction equipment

[catch22]

Folks, Prime Air's main (and only) hub is at the Cincinnati Northern Kentucky International Airport. Prime Air (now known as "Amazon Air") has no plans to establish hubs/bases other airports, let alone OKC. This is not a facility that will require Prime Air operations anyway, this is going to be a land-based ops only facility (shipping will be done by trucks). Thus, there is no need for airside connections.

If at some point Amazon Air does start flying to/from OKC, OKC will likely be a spoke in its network. My guess is it will use the air cargo facility (the new one) that will be built after it gets relocated when the new east terminal expansion gets built. I'm sure catch will have more insight into this.

No you’re pretty much on the money. I think they purposely built this next to the airport just because they aren’t sure what their air network will look like in 5-10 years. Right now, I’d say there’s zero percent chance OKC will see Prime Air. But if they develop their network to include smaller cities or milk runs (CVG-MCI-OKC etc.), it’s possible. I think I’m that scenario they’d build their own apron next to this facility. But I don’t think we’ll see Amazon Air here anytime soon, if ever under the current strategy.

[Pete]

They are well underway on this project. Huge area has already been cleared.

SW 89th is the street just to the north of the trailers.

[Pete]

They are already moving fast.

SW 89th is at the right.

[ChrisHayes]

You don't get how big an area is until viewed from the air. I wonder how much of that area surrounding Amazon could be used for future development? Amazon, could in theory could eventually be the anchor for a huge commercial and industrial development. I just don't know how that could play out with the airport right there

[Pete]

Everything shaded here is slated for development. The arrow indicates the Amazon location.

The area is more than 3 miles north to south.

[ChrisHayes]

Oh, I know all about that area. I was referring to that vast area behind Amazon to the south of the runways. Though, part of me would like to see that saved for future runway expansion.

[catch22]

Oh, I know all about that area. I was referring to that vast area behind Amazon to the south of the runways. Though, part of me would like to see that saved for future runway expansion.

I believe the master plan protects that area for runway protection zone. The master plan also calls for both N/S runways to be extended to the south to a total length of 12,000ft. Current lengths are 9,800 ft. The crosswind runway will also be lengthened to the northwest also by 2,200 ft to bring it’s length to 10,000.

[ChrisHayes]

I believe the master plan protects that area for runway protection zone. The master plan also calls for both N/S runways to be extended to the south to a total length of 12,000ft. Current lengths are 9,800 ft. The crosswind runway will also be lengthened to the northwest also by 2,200 ft to bring it’s length to 10,000.

Would that be long enough for bigger aircraft so we can accomodate more international aircraft?

[d-usa]

Found this list of runway requirements:

Aircraft / Runway Length Requirement / Suggested Airport Class

Airbus:
A318 / 3,400ft - 4,300ft (MLW) / B, C, D
A319 / 3,000ft - 5,000ft (MLW) / B, C, D
A320 / 3,500ft - 6,500ft (MLW) / B, some C
A321 / 3,600ft - 6,300ft (MLW) / B, some C
A330-200F / 3,000ft - 7,000ft (MLW) / B, some C
A330-300 / 3,000ft - 7,000ft (MLW) / B, some C
A340-600 / 5,800ft - 8,700ft (MLW) / B
A380-800 / 5,300ft - 7,000ft (MLW) / B

Boeing:
BC-17 Globemaster III / 3,500ft (1,064m) / B, C, D (non-verified)
B717-200 / 3,600ft - 5,000ft (MLW) / B, some C
B737-700 / 3,500ft - 5,000ft (MLW) / B, C
B737-800 / 3,800ft - 5,800ft (MLW) / B, some C
B737-900 / 4,100ft - 5,900ft (MLW) / B, some C
B757-200 / 3,900ft - 5,100ft (MLW) / B, C
B767-300 / 3,700ft - 5,300ft (MLW) / B
B777-200 / 3,700ft - 5,300ft (MLW) / B
B777-200LR / 5,300ft - 5,300ft (MLW) / B
B777-300ER / 4,700ft - 6,200ft (MLW) / B
B787-8 / 4,400ft - 5,000ft (MLW) / B
B787-9 / 4,400ft - 6,200ft (MLW) / B
B787-10 / 5,500ft - 7,000ft (MLW) / B (non-verified)
B747-SOFIA / 3,500ft - 5,400ft (MLW) / B
B747-VC-25 / 4,300ft - 7,300ft (MLW) / B
B747-200 / 4,500ft - 7,300ft (MLW) / B
B747-400 / 5,500ft - 7,300ft (MLW) / B
B747-800 / 5,000ft - 7,400ft (MLW) / B
B747-SCA / 6,000ft - 8,000ft (MLW) / B

Bombardier:
Dash 8-Q400 / 4,230ft (MLW) / B, C, D
CRJ-200 / 4,850ft (MLW) / B, C, D

Embraer:
ERJ-170 / 3,300ft - 4,300ft (MLW) / B, C, D
ERJ-175 / 3,300ft - 4,300ft (MLW) / B, C, D
ERJ-190 / 3,300ft - 4,300ft (MLW) / B, C, D
ERJ-195 / 3,800ft - 5,000ft (MLW) / B, C, D

My understanding is that this is a very basic list, and that factors such as elevation and temperature will impact the air density and increase the length.

I think for most airplanes our current (main) runways might already be big enough, but I wouldn't be surprised if the length of our crosswind runway would be a concern. Overall I would think that our runways wouldn't be that much of a factor when it comes to keeping bigger planes away. My guess is that the physical layout of the gates are a bigger issue than the runways, which will be addressed with the terminal expansion.

[HangryHippo]

Everything shaded here is slated for development. The arrow indicates the Amazon location.

The area is more than 3 miles north to south.

Other than the SkyWest maintenance facility, are there more aviation businesses already in the works for this area?

[djohn]

The quality of these jobs was discussed earlier in the thread. Here is another article that makes it sound like it will not be a great place to work: https://www.seattletimes.com/busines...rehouse-world/

[jedicurt]

The quality of these jobs was discussed earlier in the thread. Here is another article that makes it sound like it will not be a great place to work: https://www.seattletimes.com/busines...rehouse-world/

by one persons account who was a temp employee who couldn't even remember how many days he actually worked (at first he said 15, now he is saying 12 and a half, amazon says he only worked 10), who was working for amazon in a different country, with different labor laws... Oh and Amazon has said that close to 90% of the statements are not true... and that if he didn't ask where a bathroom was, that is his fault, not the companies..

These type of articles always get way too much press. because if these were the true conditions, there would be many many many more reports.

[SOONER8693]

The quality of these jobs was discussed earlier in the thread. Here is another article that makes it sound like it will not be a great place to work: https://www.seattletimes.com/busines...rehouse-world/

There will be no shortage of people wanting these jobs.