May 22, 2018

Amazon to occupy fulfillment center in western Michigan

$150 million facility to be one of 35 new U.S. centers through end of 2019.

By DC Velocity Staff

E-tailer Inc. will occupy a $150 million fulfillment center in Kent County in western Michigan, its fourth facility in the state, the Michigan Economic Development Corp. (MEDC) said today.

The 1-million-square-foot facility, to be built on a 97-acre parcel in Gaines Township, will join locations in Livonia, Romulus, and Shelby Township, all of which are in the Detroit metro area. The Gaines Township center will employ about 1,000 people, the MEDC said today. No timetable has been disclosed for Amazon to operate out of the facility.

Seattle-based Amazon will lease land owned by Steelcase, a furniture manufacturer based in Grand Rapids, the largest city in western Michigan. The state has approved a $4 million grant to Amazon, while Gaines Charter Township will provide a 50-percent property tax abatement, according to MEDC.

The facility is one of 35 fulfillment centers that Amazon will add to its U.S. network between now and the end of 2019, according to Marc Wulfraat, president of MYPVL International, a consultancy that tracks Amazon's physical distribution network. The 35 centers will add 30 million square feet of space to the 93.3 million square feet of space currently in use, Wulfraat said.

The announcement is "big news for Grand Rapids and Michigan because of the job creation there," Wulfraat said in an e-mail today.

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