JOHNSTON — Construction of a six-story, 3.8 million square foot distribution center in the city is being held up by supply chain issues, according to Mayor Joseph M. Polisena.
While the original target day for building completion was April 2023, Amazon.com Services LLC’s facility likely won’t be complete until late next summer.
Polisena recently said the project was a few months behind schedule, a delay first reported by WJAR-TV NBC 10. Polisena said Amazon told him the delay was due to supply chain issues. , although the e-commerce company has not publicly commented on the situation.
In late 2021, Amazon.com Services LLC purchased 196 acres of private land from Johnston valued at nearly $13 million as the final step before beginning construction of its $290 million fulfillment center near Highway 6 near Interstate 195.
“The sooner the better,” Polisena said when it came to the construction schedule.
The Amazon fulfillment center is being built at 2120 Hartford Ave. after the city negotiated a 20-year tax stabilization agreement with the company, providing the community with an average of $7.2 million in annual tax revenue over the term of the agreement.
The tax deal begins with a $5.7 million payment by Amazon to the city in the first year of operation, ending at $9.1 million 20 years later, for a total of 145, $6 million throughout the fiscal stabilization agreement.
The fiscal stabilization agreement also requires Amazon to provide additional funding to the city for traffic improvements, transportation assistance, job training opportunities and public safety, including $1 million for mitigation. traffic after construction and $5.4 million over 10 years for the cost of public safety operations.
Polisena said the tax deal was a much better alternative to the $60,000 in annual tax revenue the city earned each year from former owners of the mostly undeveloped land.
The deal was publicly backed by Governor Daniel J. McKee, who touted the economic impact and job creation that would come with the development. Amazon said the new fulfillment center would create 1,500 new permanent jobs, as well as 1,500 construction jobs.
Marc Larocque is a contributing writer for PBN.
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