“We have found a dedicated and enthusiastic workforce in Texas that has supported our growth throughout the state,” said Mike Roth, Amazon’s vice president of North American operations, in a news release. “Additionally, over 350 Amazon associates, managers and support staff in Texas come from military backgrounds. These individuals bring valuable leadership skills, experiences and problem-solving abilities to our fulfillment center; it’s a great match on both sides.”
Amazon, the world's largest retailer, announced plans Aug. 20 to open its fifth Texas distribution center in San Marcos.[/caption]In an Aug. 20 news release the company said it plans to employ 1,000 people at the distribution center, which will be located off McCarty Lane, east of I-35.
Under terms of the incentive agreement, Amazon must employ at least 350 people at the center. In return, the city will refund to the company 85 percent of its ad valorem taxes on personal property and 40 percent of ad valorem taxes on real property for 10 years. The city will also rebate a sliding scale of sales taxes realized by the city from the project over the first 20 years of the project. Sales on online goods are not currently taxed by the entity from which those sales are generated.
If Amazon maintains at least 1,000 jobs during five of the first 10 years of the agreement, the company may opt to extend the term of the tax rebate agreement an additional five years. The company must then maintain 1,000 jobs throughout the extended period.
The company would be required to maintain annual payroll of at least $11.28 million under the 350-job model. In the event they hire 1,000 people they would be required to maintain payroll of $32.24 million. City Manager Jared Miller said the company plans to have about 60-70 managerial jobs under the 1,000-job model.
Adriana Cruz, president of the Greater San Marcos Partnership said the process of bringing the company, which recently surpassed Wal-Mart as the largest retailer in the world, to San Marcos began in May. A site consultant—someone tasked with helping a company choose the site of its next expansion—had attended an event hosted by the GSMP in San Marcos in November. The city and economic development team made such a strong impression on him that he recommended the company consider San Marcos, Cruz said.
"A project of this size and scope is important, not only because of the number of jobs, but it diversifies our economy," Cruz said. "This is a brand name company that has identified San Marcos as the site of their fulfillment center, which just speaks volumes to our workforce, our business climate and our infrastructure that can support a major project like this."
