Orange County’s 3rd Amazon Warehouse Granted $10 Million in Tax Exemptions
A soon-to-be-constructed $200 million Amazon warehouse in the Town of Wawayanda was awarded more than $10 million in tax exemptions by the Orange County Industrial Development Agency (OCIDA).
It is the third Amazon warehouse to be built in the county, following a one-million-square-foot distribution center in the Town of Montgomery and a “last-mile” delivery station in New Windsor.
Board members of OCIDA approved the incentives during a May monthly meeting by a 5 to 1 vote.
OCIDA is a public benefit corporation empowered by state law to incentivize business and job growth through reduced or exempted sales, mortgage recording, and property taxes.
The Wawayanda facility was awarded $9.5 million exemptions in sales taxes and another $1.1 million in state mortgage recording taxes.
The county has a total sales tax rate of 8.125 percent—4 percent to the state, 3.75 percent to the county, and the rest to the Metropolitan Transportation Authority.
About one-quarter of the sales taxes received by the county are shared with local municipalities.
In its application to OCIDA, Amazon argued that the tax incentives are necessary for its expansion in New York, especially given more favorable economic conditions offered by neighboring states like New Jersey, Connecticut, Pennsylvania, and Massachusetts.
Once running, the distribution center will employ 150 full-time workers, nine out of ten being low-skill jobs with an annual salary of $31,200.
Education opportunities are available for hourly workers to obtain English language proficiency, high school diplomas, and college degrees, according to a company representative at an OCIDA meeting.
Last year, Amazon started a new educational partnership with Orange County Community College.
The warehouse will be constructed on a gravel sand mine site at 22 McBride Road and Hoops Road, and its property tax payments will benefit Orange County, the Town of Wawayanda, Slate Hill Fire District and Highway Fund, and Minisink Valley Central School District.
Several infrastructure improvements will come with the facility, including the extension of public water and sewer lines and two new traffic lights at the intersection of Route 6 and Route 17M.
Residents Concerned
At a public hearing hosted by OCIDA on March 2, several county residents questioned the merit of the tax incentives.
They said the wages are hard to support a family, especially given the rising cost of living in Orange County; they also doubted whether a company with a $1 trillion net worth needed any incentives.
“Amazon is coming to town, we are not going to stop it, but you can control whether you give them millions of dollars [of tax incentives],” one resident said.
Another resident expressed concern about the longevity of these warehouse jobs as automation is making its way into distribution centers nationwide.
Bill Fioravanti, CEO of OCIDA, replied at the public hearing that he was monitoring the trend of automation and that his agency and Orange County Partnership were looking beyond warehouses to attract businesses in advanced manufacturing and high technology.
He added that OCIDA was considering revising its policy to allow for tax incentives for housing developments, making it more affordable for people to work and live in the county.
