Amazon’s $500M warehouse project near Atlanta gets initial OK for tax break
Amazon on Tuesday received preliminary approval for a tax break in Fulton County as part of a $500 million project to transform an existing warehouse into a high-tech package facility.
The Development Authority of Fulton County greenlit the request by the world’s largest e-commerce company for $16 million in property tax savings as part of its South Fulton project. Amazon plans to convert a 1.1 million-square-foot warehouse off Campbellton Road, which it has rented since 2020, into a “first mile” fulfillment center with robotics and 750 employees.
Will Cowsert, senior manager of economic development at Amazon, told the DAFC board that the incentive is an important factor in the company’s site selection process. He said they’re evaluating dozens of sites as part of its broader logistics network, although specific alternatives were not disclosed.
“We don’t pit one site versus another,” he said. “But in reality, we look at dozens of sites for one operation.”
Completed in 2020, the warehouse at 7055 Campbellton Road was developed by Cobb County-based Taylor & Mathis as the Chattahoochee Logistics Center. DAFC, which also goes by the name Develop Fulton, approved a $2.8 million tax break during the warehouse’s construction, which Amazon benefited from as the leased tenant.
Amazon used the building as a “last mile” distribution center until 2024, shuttering it and relocating most employees to other similar facilities on Atlanta’s Southside. It’s obligated to pay rent through early 2031, Cowsert said.
“Right now, there is no operation at this site,” he said. “The first mile fulfillment center we’re proposing with this project is a completely different operation, which is why it requires this significant capital investment.”
If the new tax break receives final approval, it will effectively result in “unwinding the landlord’s current abatement,” Cowsert said. He added that Amazon expects to make a final decision by the end of March, aiming to open the new facility by the end of 2027.
Kwanza Hall, the authority’s chairman, voted in favor of the tax break. He told The Atlanta Journal-Constitution ahead of Tuesday’s vote that Amazon’s project will “reinvest in an existing asset that strengthens the local economy.”
During the meeting, he added that South Fulton’s mayor is supportive of the tax break.
First mile facilities are where Amazon packages begin their journey and involve the initial sorting and packaging processes. Most packages then pass through a “middle mile” delivery phase, which can involve interstate or coast-to-coast truck travel, before arriving at a last mile distribution center for final delivery.
DAFC estimates Amazon’s Campbellton Road project will generate $36.2 million over the next decade despite the tax break.
The authority also noted in the fact sheet that “a floor would be set” to prevent property tax collections from declining amid the renovation work. The property currently generates $772,000 in annual taxes.
The Tuesday decision, which included two dissenting votes from board members Kyle Lamont and Alvin Kendall, is nonbinding and requires a second vote to finalize. The nine-member DAFC board in recent years has rarely rejected a project after providing preliminary approval.
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
