Amazon to Open Distribution Center in Elk Grove

News item

Amazon to Open 111,500 SF Distribution Center in Elk Grove

Posted: 05/15/2020

Distribution Center

Seattle, WA based e-commerce company Amazon, Inc. is opening a 111,500 SF distribution center in Elk Grove. The $21.3 million project, which will employ hundreds of people, is under construction at 9501 Union Parkway and will open later this year. Irvine, CA-based Panattoni is the developer with Sacramento-based Alston Construction acting as general contractor. Sacramento-based Fite Development Company sold the 17-acre industrial site to Panattoni in December of last year, and construction commenced in January.

“This is a real win for Elk Grove,” said Elk Grove Mayor Steve Ly. “Amazon and Panattoni are great companies, and we are excited to have them doing business in our city. This is especially good news during these trying economic times,” Ly said.

Multiple cities were vying for the project. Early in project discussions, the City made a key zoning determination that the project was allowed “by right” as part of a previously approved industrial park, avoiding a lengthy rezoning process, and allowing the project to move straight to design review. With the City’s help, Panattoni was able to pursue its building permits in parallel with design review, shaving several more months off the project schedule. Meanwhile, the City used its economic development fast tracking program to guarantee a hearing date by the City’s Planning Commission, which resulted in project approval in November of last year, and building permits being issued a week later. The City provided no financial incentives or subsidies.

“Elk Grove is an emerging destination for warehouse and distribution projects,” said Elk Grove Economic Development Director Darrell Doan. “Elk Grove has worked hard in recent years to articulate our strong value proposition as a business location. Having a developer like Panattoni and a brand like Amazon select our City for their project is proof that it’s working,” Doan said.

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