News Article | 1/30/2013

It’s official: Amazon to put distribution centers in Coppell, AllianceTexas

After nearly four months of silence on its North Texas plans, Seattle-based has confirmed to the Dallas Business Journal that the online retail giant is making a foray back to DFW in a big way. (Nasdaq: AMZN) plans to open two large regional distribution centers totaling more than 2 million square feet in Coppell and AllianceTexas. The distribution centers, along with an additional one near San Antonio, will generate about 1,000 fulfillment center jobs.
Fort Worth-based Hillwood Development Co. is the developer of the two ground-up projects. Both 15-year lease deals were completed in 2012. The terms of the agreements were undisclosed.
In December, the Dallas Business Journal obtained public records that outlined the details of its 1.1 million-square-foot distribution center in AllianceTexas, which will sit on roughly 68 acres of land.
The DBJ also broke the news last October that the City of Coppell was working on a tax incentive deal with The economic development deal has not been completed yet, city officials say.
Coppell has authorized City Manager Clay Phillips to negotiate an agreement with the online retailer to bring a distribution center to 900 W. Bethel Road in Coppell, which is a tract owned by Hillwood. had a facility in Irving, but it closed in 2011 after a dispute over whether the company had to collect sales tax.
The online retailer began collecting sales taxes from its Texas customers this summer, after reaching an agreement with Texas Comptroller Susan Combs, who had estimated Amazon owed the state $269 million in taxes and penalties related to sales from 2004 to 2009.
As part of the deal, Amazon committed to creating 2,500 jobs in Texas and making at least $200 million in capital investments within the state.
These two large regional distribution deals — and the addition of 1,000 fulfillment jobs in North Texas — reinforce the importance of Dallas-Fort Worth’s distribution market. Other large companies, such as L’Oreal, Restoration Hardware and BMW, have also recently landed distribution centers in North Texas.