The world’s largest e-commerce Amazon is planning to open a second fulfillment center in Michigan in Romulus that will create about 1,600 jobs and the Michigan Strategic Board will provide a $5 million grant for the business development.
The state’s ‘Strategic Funds’ board meeting on Tuesday will include a $5 million grant for the Amazon’s $140 million investment at an undisclosed location in Romulus.
"In order to make the operation move at the level of efficiency necessary, there are substantial road and other infrastructure improvements needed," according to the MEDC memo to Michigan Strategic Fund board members. "Providing this performance-based incentive will help the company offset some of the costs related to infrastructure."
Though the exact location of the new fulfillment center was not revealed, the facility is most likely to qualify for additional public support for infrastructure improvements.
"Wayne County Aerotropolis is evaluating establishing a (Local Development Financing Act) to capture state and local taxes to assist with infrastructure improvements," the memo said.
The grant for business expansion is subject to approval by the Michigan’s economic development board.
In December last year, Amazon announced its plans to hire at least 1,000 people and spend $90 million converting a former General Motors Co. Factory in Livonia to a warehouse.
Construction of the Livonia facility is "well under way," according to the MEDC briefing memo.
The MEDC memo indicates Amazon considered other sites for construction of "a new state-of-the-art fulfillment center" in Canada and the Midwest before settling on Romulus.
Amazon spokesperson Shevaun Brown in an email said: "Amazon is constantly investigating new locations to support the growth and increase the flexibility of its North American network to address customers' needs."
"Amazon is not yet commenting on any specific plans in Michigan," she added.
The world’s largest e-commerce website currently employs 277 people in Michigan and roughly 200,000 people worldwide.
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