Site preparations for the planned Amazon manufacturing facility in the Dog's Head began this summer. (Ben Thompson/Community Impact)
Amazon is bringing a multi-billion dollar advanced robotics manufacturing facility to East Austin, the company announced Aug. 19. The project will be an anchor development in the newly annexed Dog's Head, and was first detailed by city officials during recent planning and financing reviews for that district.
"Austin's talented workforce, world-class universities and strong community partnerships make it the ideal home for this facility," Holly Sullivan, Amazon vice president of worldwide economic development, said in a statement. "We're proud to deepen our commitment to this city and the state of Texas."
The overview
The new manufacturing site will be located off Hergotz and Dalton lanes in the center of the more than 2,600-acre Dog's Head area. The roughly 300-acre development first started moving through city reviews earlier this year as the unidentified "Project Toaster," and was revealed as the first potential tenant in the Dog's Head in July.
In a news release, Amazon called Austin a "natural location" for the project given the existing engineering workforce, university partnerships and overall innovation ecosystem in the area.
The new facility will produce robotics systems that'll work with Amazon's employees "to handle repetitive tasks and heavy lifting," according to the release. The development will create between 300-500 manufacturing and engineering jobs, adding to Amazon's more than 17,000 employees in the city today. The company has invested more than $100 billion in Texas since 2010 and now has 86,000 workers statewide, according to Amazon and Gov. Greg Abbott.
“Texas is the new frontier for innovation,” Abbott said in a statement. “We congratulate Amazon on their expanded investment in Texas. With the best business climate in the nation, easy access to global markets, and a deep pipeline of skilled talent, Texas offers advanced manufacturers and technology leaders unmatched resources to innovate and expand.”
Zooming in
In addition to those economic and workforce impacts, Amazon said it will work with Austin and Del Valle ISDs to support STEM education programs and expand its partnerships with local nonprofits like the Central Texas Food Bank, Foundation Communities and Mobile Loaves and Fishes.
"Amazon chose Austin for this big deal because of our world class innovation ecosystem, our position as a global leader in advanced manufacturing, and the talent pipeline we’ve developed that focuses on giving more Austinites the opportunity to access better career pathways. Amazon asked for no economic incentives, no public money,” Mayor Kirk Watson said in a statement. “This development will create hundreds of family sustaining careers and demonstrates Amazon’s commitment to Austin’s long-term sustained success. It will also immediately start adding to Austin's tax base, which will help pay for necessary city services. Austin continues to be a city where companies choose to invest, grow, and innovate."
Amazon's selection of the East Austin site came soon after a contentious City Council vote to move ahead with a long-range tax increment financing plan that'll eventually fund some public infrastructure in the Dog's Head. The largely undeveloped area requires upgrades like roads and utility lines to support additions like the Amazon facility, as well as thousands of residences and millions of square feet of other mixed-use development anticipated by Endeavor Real Estate Group. A portion of the city's rising tax revenue there will be used to reimburse Endeavor's infrastructure costs as the buildout takes place.
"One of the things that makes Dog's Head unique is the opportunity to create a destination that serves both the community and the regional economy," Endeavor Managing Principal Andy Pastor said in a statement. "This project will bring together jobs, housing, infrastructure, trails, open space and public access to the Colorado River in a way that's never existed on this property before. Amazon's investment is an exciting milestone because it demonstrates what's possible as Dog's Head begins to take shape."
Alongside their Dog's Head tax financing vote in July, city officials also agreed to vacate portions of two roadways around the Amazon project site to clear the way for project construction. The move came over area residents' objections due to concerns about traffic and mobility if the roads were shut down; Endeavor representatives said they'll work to minimize disruptions and over several months of anticipated closures. A new street grid with connections across the Colorado River, including to Tesla's Giga Texas site, is also being planned throughout the entire Dog's Head area.
Amazon's manufacturing facility sits in the center of a planned road network that will be build across the Dog's Head. Street alignments aren't yet final. (Courtesy city of Austin)
What's next
Amazon didn't confirm the project's expected development schedule as of press time.
While no public financing is being sought for the Amazon site, Travis County leaders have yet to decide whether to join the wider tax increment plan that Austin officials agreed to this summer. County Judge Andy Brown said staff are conducting more due diligence on issues like traffic, economic projections and environmental impacts, after county commissioners didn't take action on the plan in mid-July.
"We're not rushing this decision. Taking the time to get it right will help ensure the site delivers lasting benefits for Travis County residents for generations to come," he said in an August newsletter.
