Amazon planning distribution center in Oak Creek

Would bring more than 1,000 jobs to city

Online retail giant Amazon is planning to build a 2.5 million-square-foot, four-story warehouse and distribution facility that would bring more than 1,000 jobs to Oak Creek, according to sources.

The project, being called “Project Arrow,” would be built in the Ryan Business Park, which is being developed by Pewaukee-based Capstone Quadrangle and Fox Point-based General Capital Group southeast of South 13th Street and West Ryan Road, just east of I-94.

Amazon’s logo has a large, curved arrow.

Project Arrow consists of the “development of and construction of a commercial warehouse and distribution facility serving as an internet retail fulfillment center,” according to plans submitted by Brookfield-based Pinnacle Engineering Group to the state.

Construction of the building could be complete in early 2020, provided the Department of Natural Resources approves the plans. The project site includes 4.3 acres of wetlands. Sources say Amazon would build on about 80 acres.

Mike Faber, founder of Capstone, declined to comment on Project Arrow or Amazon.

“Nothing is signed,” Faber said. “I have a lot of interest and I am excited about the interest. There is a lot happening behind the scenes.”

According to documents submitted to the state, Project Arrow is for a tenant who has constructed “numerous facilities across the country.”

The building footprint is 669,000 square feet, with three suspended floor areas that are 639,000 square feet for a total of four levels, according to documents submitted to the state. The building contains a series of mezzanine and platforms that translate into approximately 2.5 million square feet of floor space, the documents say.

“This building type has evolved from a building that once had a footprint in excess of 1 million square feet,” according to plans submitted to the state.

By comparison, Amazon has a 1.1 million-square-foot fulfillment center and a 500,000-square-foot distribution center in Kenosha.

“Amazon is constantly investigating new locations to support the growth and increase the flexibility of its North American network to address customers’ needs,” said Alyssa Tran, a spokesperson for Seattle-based Amazon. “Amazon is not yet commenting on any specific plans in Wisconsin.”

If the project is not approved, it will result in lost economic opportunity to the city of Oak Creek that could create more than 1,000 jobs, according to the documents submitted to the state.

Roadway improvements will also be required to support the project. During peak season, truck counts are expected to be 350 trucks per day. The building itself will have 1,800 parking stalls.

The city of Oak Creek is considering up to a $30 million tax incremental financing district for the business park. Doug Seymour, director of community development with the City of Oak Creek said he did not know about Amazon and if he did, said he could not comment.

Multiple sites in southeastern Wisconsin were considered by Amazon for the facility but were eliminated, including Century City on Milwaukee’s northwest side, Menomonee Falls and Germantown, according to sources.

“Properties were eliminated due to their lack of one or multiple key components necessary for a successful project, including but not limited to access to major transportation network, close proximity to an ample workforce, utility capacity, future expansion needs,” according to the documents submitted to the state. “Most all of the area business parks did not contain sufficient open land or infrastructure to accommodate the Project Arrow development.”

BizTimes reporter Arthur Thomas contributed to this report. 

Online retail giant Amazon is planning to build a 2.5 million-square-foot, four-story warehouse and distribution facility that would bring more than 1,000 jobs to Oak Creek, according to sources.

The project, being called “Project Arrow,” would be built in the Ryan Business Park, which is being developed by Pewaukee-based Capstone Quadrangle and Fox Point-based General Capital Group southeast of South 13th Street and West Ryan Road, just east of I-94.

Amazon’s logo has a large, curved arrow.

Project Arrow consists of the “development of and construction of a commercial warehouse and distribution facility serving as an internet retail fulfillment center,” according to plans submitted by Brookfield-based Pinnacle Engineering Group to the state.

Construction of the building could be complete in early 2020, provided the Department of Natural Resources approves the plans. The project site includes 4.3 acres of wetlands. Sources say Amazon would build on about 80 acres.

Mike Faber, founder of Capstone, declined to comment on Project Arrow or Amazon.

“Nothing is signed,” Faber said. “I have a lot of interest and I am excited about the interest. There is a lot happening behind the scenes.”

According to documents submitted to the state, Project Arrow is for a tenant who has constructed “numerous facilities across the country.”

The building footprint is 669,000 square feet, with three suspended floor areas that are 639,000 square feet for a total of four levels, according to documents submitted to the state. The building contains a series of mezzanine and platforms that translate into approximately 2.5 million square feet of floor space, the documents say.

“This building type has evolved from a building that once had a footprint in excess of 1 million square feet,” according to plans submitted to the state.

By comparison, Amazon has a 1.1 million-square-foot fulfillment center and a 500,000-square-foot distribution center in Kenosha.

“Amazon is constantly investigating new locations to support the growth and increase the flexibility of its North American network to address customers’ needs,” said Alyssa Tran, a spokesperson for Seattle-based Amazon. “Amazon is not yet commenting on any specific plans in Wisconsin.”

If the project is not approved, it will result in lost economic opportunity to the city of Oak Creek that could create more than 1,000 jobs, according to the documents submitted to the state.

Roadway improvements will also be required to support the project. During peak season, truck counts are expected to be 350 trucks per day. The building itself will have 1,800 parking stalls.

The city of Oak Creek is considering up to a $30 million tax incremental financing district for the business park. Doug Seymour, director of community development with the City of Oak Creek said he did not know about Amazon and if he did, said he could not comment.

Multiple sites in southeastern Wisconsin were considered by Amazon for the facility but were eliminated, including Century City on Milwaukee’s northwest side, Menomonee Falls and Germantown, according to sources.

“Properties were eliminated due to their lack of one or multiple key components necessary for a successful project, including but not limited to access to major transportation network, close proximity to an ample workforce, utility capacity, future expansion needs,” according to the documents submitted to the state. “Most all of the area business parks did not contain sufficient open land or infrastructure to accommodate the Project Arrow development.”

BizTimes reporter Arthur Thomas contributed to this report. 

Comments

  1. Bob Domelina says:

    Oak Creek used to be a great place to live. Too much development too quickly has cost us the soul of our city…

  2. John Drew says:

    “NO”! Oak Creek doesn’t need this type of development! Especially not in this location. This area is already overburdened with trucking. Residents can’t get to work or any of their destinations as it is with all the truck congestion in this intersection. Combine that with the cost to taxpayers for “TIFS” and added infrastructure and this is a bad investment!