Amazon eyeing new distribution centre in Minnesota

Amazon eyeing new distribution centre in Minnesota

Amazon may be planning to build a new distribution centre in Shakopee, Minnesota, according to unconfirmed reports. Reports that the online retailing giant may be looking to move into Shakopee have been circulating in local media since February. Staff on the Minneapolis/St Paul Business Journal have now reported that the Mayor of Shakopee, Brad Tabke, confirmed the deal yesterday (21 April), although Amazon has still not made any comment.

According to reports, Amazon has picked out a 63-acre site and the distribution centre will cost at least $55 million. However, Amazon may offset some of this cost with tax breaks.

Amazon may look to break ground on the site in June, and facility could be open by early 2017.

Speculation that Amazon may be looking to build a facility in Minnesota began when the company started charging sales tax to its online customers in the state. Online retailers that don’t have physical stores don’t have to charge state sales tax unless they have a physical presence or affiliated business in the state.

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