Amazon is building a distribution center in Elk Grove on Union Parkway. The 11,000-square-foot facility is expected to be complete in 2020.
City of Elk Grove
Online retail giant Amazon will build a new distribution center in Elk Grove that is expected to open later this year. Construction for the $21.3 million project started in January and could employ more than 100 people.
Elk Grove will join 20 other cities in the state with local fulfillment warehouses, which allow the company to ship items to customers in days or even hours. The distribution centers have become the linchpin in Amazon’s e-commerce business, which has exploded since COVID-19 shutdown orders have closed retail businesses across the country.
Panattoni, a Southern California developer, purchased the 17 acres last year and hired general contractor Alston Construction to build the 111,000-square-foot warehouse at 9501 Union Parkway.
“Amazon and Panattoni are great companies, and we are excited to have them doing business in our city,” said Mayor Steve Ly. “This is especially good news during these trying economic times.”
Panattoni also built the 207,000-square-foot distribution center in Elk Grove for Slakey Brothers, a company that sells heating, ventilation and air conditioning parts, according to its website.
Elk Grove officials said several other cities were competing to land the facility. Amazon already operates fulfillment centers in Sacramento, Tracy and Fresno, among other places in California. Elk Grove officials said clearing permitting and design review at the same time helped fast-track the project, shrinking the process by several months.
The project was approved by the planning commission last November did not receive any subsidies or financial incentives, city officials said.
Elk Grove was one of a handful of cities in the region to pitch the company as it scoured the nation for a place to build a second headquarters two years ago.
The project would have guaranteed as many as 50,000 jobs and the city offered up an incentive package worth $280 million, The Bee reported at the time. Unlike the distribution centers, the HQ2 project would have created thousands of jobs in higher-paying occupations.
Lately, the city has been focused on developing more industrial jobs and the amazon project is proof that it’s working, said Darrell Doan, the city’s economic development director.
“Elk Grove is an emerging destination for warehouse and distribution projects,” said Elk Grove Economic Development Director Darrell Doan. “Elk Grove has worked hard in recent years to articulate our strong value proposition as a business location.”
Mike Finch joined The Bee in July 2018 as a data reporter after working at newspapers in Alabama and Florida. A Miami native, he has been a member of Investigative Reporters and Editors since 2012 and studied political science at Florida International University.
