GRAND RAPIDS — Amazon will build a new delivery station in southeast Grand Rapids, the company announced Thursday, May 29.
Construction began on the 41,000-square-foot facility earlier in May. Launch plans for the station on Southeast Sixth Avenue near Walmart are in the very early stages, according to a news release from the Grand Rapids Economic Development Authority.
The release stated delivery stations power the last mile of Amazon orders. Packages are shipped to delivery stations from neighboring fulfillment centers, then loaded and delivered to customers.
“This delivery station will allow us provide faster delivery and great service to local customers in Grand Rapids and the surrounding area,” stated Jason Vangalis, manager of economic development for Amazon, in the release.
“We’re grateful for our partnership with the Grand Rapids Economic Development Authority. We look forward to sharing more details about this facility in the future.”
GREDA Executive Director Rob Mattei said these projects are why the city has proactively developed industrial parks.
"We pride ourselves on providing an efficient and collaborative response to businesses considering either newly locating or expanding here," he stated in the release.
GREDA sold the lot to Ryan Companies, Amazon's developer, for the asking price of the lot, Mattei told KAXE. There were no public subsidies or tax abatements as part of the purchase or development agreements.
The process began in July when a site location firm from Seattle approached the city.
Mattei said geography was likely a factor in Amazon's decision to open a facility in Grand Rapids. A distribution facility recently opened in Duluth, and one in Baxter is expected to open this year.
"Grand Rapids is kind of logically situated in between, and I think the fact that we had a site that worked well for them was another factor," Mattei said.
"And I like to also think that just the vitality of the community and what we have going on here played a role as well."
Amazon announced April 30 that it would be expanding its rural delivery network threefold, creating over 100,000 new jobs across the country.
The online shopping giant estimated each new facility would create an average of 170 jobs at the delivery stations themselves, in addition to delivery driver opportunities.
Full-time roles at delivery stations provide an average hourly wage of $22 an hour, plus benefits, according to the company.
GREDA President Sholom Blake said the delivery station "will provide additional job growth to our area and contribute a significant amount of new tax base to our community."
Developers told GREDA the station would create 75 or more jobs, Mattei said.
He estimated construction would take a year, but he couldn't say with any certainty when the facility would open.
The Amazon delivery station is the second major construction project from a GREDA deal underway in the city.
Unique Opportunities, LLC, a company partly owned by Alexandria-based Herzog Property Management, is building a 63-unit apartment building across the street from the Grand Rapids Area Library.
Mattei said GREDA will soon close on the sale of property near West Rapids Elementary, where Oppidan Inc. plans a 132-unit apartment building. He said construction may begin in July.
