Amazon To Build Distribution Plant In Pflugerville

PFLUGERVILLE, TX — Amazon on Wednesday announced plans to open a new fulfillment center in Pflugerville, a move spurred by some $3.8 million in financial inducements in exchange for creation of 1,000 full-time jobs by next year.

The site is expected to launch in 2021, company officials said in an advisory. Company officials said employees would receive competitive pay with comprehensive benefits starting on day one of the plant's operations. The deal was approved during a July 14 regular city council meeting following unanimous approval by the Pflugerville Community Development Corporation board at a special meeting convened earlier at 6 p.m., officials said.

“We’re appreciative of the people of Texas for so warmly embracing Amazon into the community,” Alicia Boler Davis, Amazon’s vice president of global customer fulfillment, said in a prepared statement. “There are now over 20,000 Texan Amazonians working for us in the state –and we’re excited to be creating an additional 1,000 full-time jobs in Pflugerville with Amazon’s industry leading benefits, and minimum starting wage from $15 an hour.”

Added Mayor Victor Gonzales: “We are proud that Amazon has chosen Pflugerville for a distribution center increasing employment opportunities, while contributing $250 million to the tax base and set the stage for continued growth along the Pecan Street and SH 130 corridor,” he said. “The Pflugerville Community Development Corporation has provided support to both Amazon and the City of Pflugerville with the necessary intersection improvements at FM 685 and Pecan Street to keep everyone moving. This managed growth is an investment into our city, and we welcome Amazon to our community.”

At the new 820,000-square-foot fulfillment center employees will work alongside Amazon robotics to pick, pack and ship small items to customers such as books, electronics and toys, officials described.

To help spur the economic development project, Pflugerville Community Development Corp. officials agreed to fund up to $3.8 million to the City of Pflugerville for transportation improvements at FM 685 and Pecan Street. The FM 685 and Pecan Street improvements will provide operational advantages, including the construction of a crossover, displaced left-turn lane which is the first of its kind in Pflugerville to enhance traffic mobility along the Pecan Street Corridor.

Construction is expected to be completed by July 2021 and will be paid to the city out of Pflugerville Community Development Corp. encumbered funds in fiscal years 2021 and 2022. Amazon is required to begin operations on or before Dec. 31, 2022, officilals noted.

In return, Amazon committed to invest $250 million in capital investment with a facility encompassing a minimum of 820,000 square feet generating 1,000 full-time primary jobs during the 10-year term of the agreement, Pflugerville Community Development Corp. Executive Director Amy Madison confirmed.

“Prior to this project, the 94 acres where Amazon is locating were not in the city limits and provided no tax base,” Madison said. “We are entering into a binding agreement to provide additional infrastructure improvements benefiting all businesses and residents in exchange for Amazon’s commitment to creating jobs and providing a substantial annual tax base for the city.”

The Pflugerville Community Development Corp. is funding the transportation improvements with a half-cent sales tax set aside for economic development to allow the previously unfunded city road improvement to occur without directly impacting local property taxes or the one-cent sales tax collected by the city, Madison explained. She added that Amazon has already had a positive impact on the Pflugerville community, particularly during the early construction phase when the project generated sales tax and paid permit fees that have offset the significant declines from other city revenue sources due to the coronavirus pandemic, contributing to the city’s current 15.7 percent year-over-year growth in overall sales tax from fiscal year 2019.

On top of Amazon’s minimum starting wage from $15 an hour, the company offers full-time employees comprehensive benefits including full medical, vision, and dental insurance as well as a 401(k) with 50 percent match starting on day one., company officials stressed. The company also offers up to 20 weeks of maternal and parental paid leave and innovative benefits such as Leave Share and Ramp Back, which give new parents flexibility with their growing families.

Amazon has also pledged to invest more than $700 million to provide upskilling training for 100,000 U.S. employees for in demand jobs. Programs will help Amazonians from all backgrounds access training to move into highly skilled roles across the company’s corporate offices, tech hubs, fulfillment centers, retail stores, and transportation network, or pursue career paths outside of Amazon, officials added.

"We are establishing a strong partnership with Amazon and welcome the first operation of its kind to Pflugerville,”Amy Madison, Executive Director of Pflugerville Community Development Corporation, said in a prepared statement. “This economic development project brings a significant capital investment, new technology and needed employment to our diverse and skilled workforce which is a comprehensive win for all."

Since 2010, Amazon has invested more than $10.5 billion into its local fulfillment center infrastructure and through compensation to thousands of employees in the state, company officials noted. Amazon's investments in Texas contributed an additional $9 billion into the Texas economy, and using methodology developed by the U.S. Bureau of Economic Analysis, Amazon estimates its investments in the state have created an additional 32,000+ indirect jobs on top of the company's direct hires.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon.

For more information, visit amazon.com/about and follow @AmazonNews.

About the Pflugerville Community Development Corporation

First, some context: Pflugerville is one of the fastest-growing cities in the nation, according to U.S. Census Bureau estimates released in May 2018. With a population of more than 71,000, Pflugerville is located just minutes north of downtown Austin in the desirable Central Texas region. State highways 45 and 130 and Interstate Highway 35 offer direct access to other nearby cities and a quick route to nearby airports. Hometown pride and quality of life are top priority, with residents enjoying the beautiful Lake Pflugerville, an elaborate trail system, shopping areas, new restaurants, and the community’s many parades and festivals.

The Pflugerville Community Development Corp. is responsible for attracting, retaining, and expanding businesses to create new jobs and increase tax revenue to support community development. PCDC can provide funding for use as an incentive for companies locating and growing in Pflugerville. PCDC funds, which are 4B money generated from a half-cent of the city’s sales tax revenue, can also be used to construct needed infrastructure such as roads, utilities, and drainage, as well as the development of parks and recreation projects.

For more information, visit www.pfdevelopment.com.