NEWS

Amazon gets tax break for possible center in Licking Co

Jessie Balmert
Gannett Ohio

COLUMBUS – If Amazon chooses to bring jobs to Licking County the ripple effect could spur economic development around the proposed site in Etna Township.

The state approved a tax credit for the company on Monday as a way to entice it to bring thousands of jobs to central Ohio.

The online retail giant, headquartered in Seattle, would not pay 75 percent of certain taxes on new jobs created for 15 years, starting Jan. 1, 2017. In exchange, the company would create a combined 2,000 jobs at distribution centers in Etna Township in Licking County and Obetz in Franklin County. The Ohio Tax Credit Authority unanimously approved the tax break at a meeting Monday.

"This is the largest one project in more than a decade," chairman David Goodman said. The company would have until Dec. 31, 2019, to create 2,000 jobs with a total payroll of $60 million. The tax credit would last through Dec. 31, 2031.

Amazon had not officially decided to bring its distribution centers to central Ohio as of Monday, said Ryan Wilson, a project manager at JobsOhio. However, the proposed facilities, called fulfillment centers, would range from 800,000 to 1 million square feet. Employees there would receive health, dental and life insurance. Amazon also pays up to 95 percent of tuition for employees seeking certificates or associate's degrees in in-demand fields, such as computer-aided design and machine tool technologies.

Officials from the online retailer did not return calls seeking comment on Monday.

Mark Schillig, president of the Pataskala-Area Chamber of Commerce, is excited at the prospect of the project.

"Adding that number of jobs would be big," Schillig said.

Schillig added the creation of more than 2,000 new jobs would change not only Etna but neighboring Pataskala.

Many residents have complained in recent years about a lack of dining and shopping options in both communities, and Schillig said those complaints likely would disappear if Amazon selects Etna.

"Everyone wants restaurants out there, and we've heard that nearly every day for the last five years," Schillig said. "If they could bring 1,500 to 2,000 employees, they would want to live and eat (and shop) here."

Licking County Commissioner Tim Bubb agreed.

"The things that follow this (kind of development) are retail, restaurants, the service industry," he said.

Local officials have their fingers crossed that Amazon will choose the western Licking County site.

"It's a huge deal," Bubb said. "Obviously, Amazon is, in their own way, one of the up-and-coming retailers in the world."

Bubb added he has heard that the company wants to have its operation running by the third or fourth quarter of 2016.

"From everything I've heard, it's a fast-track project (as soon as) they pick a site they want," he said.

To that end, Bubb said he hopes the Etna site benefits from being development ready.

Work crews already have cleared the ground, which stands next to Interstate 70. In fact, heavy machinery was visible Monday moving dirt.

"You just don't want to get your expectations too high," Bubb said. "This is just another step in the process."

Still, Bubb admitted following that advice is difficult considering the impact Amazon could have on not only Etna, but the entire county.

"You can't help but be excited," he said. "We've been waiting to see this (in western Licking County), but we just had to be patient."

The tax break would help could help Amazon decide on central Ohio, Wilson said.

"As Amazon weighs its options for this project, the company is also considering several other states for expanding their fulfillment network. The (tax credit) is a major factor in the company's consideration of whether to move forward in central Ohio," Wilson said.

The majority of the jobs created would be pickers and operators, which would receive lower salaries, but management jobs would also be available, Wilson said.