Business & Tech

Amazon Won't Seek Tax Breaks In North Andover: Selectman

North Andover Selectman Phil DeCologero said the retail giant won't ask for tax breaks or other incentives.

Amazon's North Andover facility likely won't handle its first package until late 2021 or early 2022.
Amazon's North Andover facility likely won't handle its first package until late 2021 or early 2022. (Patch File Photo)

NORTH ANDOVER, MA — Amazon is not seeking tax breaks or other government incentives to locate a distribution facility in North Andover, according to a Facebook post on Sunday by Selectman Phil DeCologero. In other communities, the online retailer has frequently sought tax incentives, including a 15-year tax increment financing deal worth an estimated $100 million to open a similar facility in Fall River in 2016.

"When it comes to economic development, many communities use tax incentives as a way to attract business," DeCologero wrote in his post. "It’s exciting that we have attracted a business willing to fill a stagnant commercial property - a business which jumpstarts a space that had once been the driver of our regional economy - and it’s being done withOUT tax breaks or incentives."

Special Town Meeting will consider zoning changes on June 19 to allow the project to move forward. Amazon has said the new facility would employ 1,500 people in jobs paying at least $15 per hour. The company expects the local property tax bill for the distribution center it wants to build in North Andover to be between $3.3 million and $4.4 million. Those figures are between 3.3 percent and 4.3 percent of the $101.4 million in revenue the town is expecting to collect in fiscal year 2020, according to budget documents.

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Clearing the site will take about a year after town meeting's approval, with construction taking another 15 to 18 months. That means the center won't handle its first package until late 2021 or early 2022.

Related Story: What Can North Andover Learn From Fall River's Amazon Warehouse?

Find out what's happening in North Andoverfor free with the latest updates from Patch.

Dave Copeland can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).

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