Amazon.com appears to be planning a major expansion in Grand Forks, city documents suggest.
Today, city leaders will be considering a lease for 29,000 square feet of space at a city-owned building in the Industrial Park, which represents a 73 percent increase in the Seattle-based online retailing giant's footprint in the area.
It currently leases, 40,000 square feet in another city-owned building, used as a customer service call center.
Urban Development Director Greg Hoover said he expects Amazon.com to announce the number of jobs it will add at the City Council meeting at 5:30 p.m. today at City Hall.
Amazon.com was asked how many are employed now or how many more will be employed, but had not replied as of press time. The company has announced several expansions elsewhere since the beginning of the year, including new order fulfillment centers in Indianapolis and Sumner, Wash., and expansion of a fulfillment center in Phoenix.
ADVERTISEMENT
Urban Development staff and the city's Growth Fund Committee, which oversees city-owned business buildings, have been negotiating the deal in secret for several months.
Here are some details of the deal:
- The city will carve the 29,000 square feet out of the 160,000-square-foot building now leased by Cirrus Design. Cirrus will sublet the space to Amazon.com. The aircraft maker will continue to lease the remaining 131,000 square feet.
- The cost of creating the separation inside the building is $201,000. Refitting the new area for Amazon.com may cost up to $1.7 million, though the city expects it'll only need $1.3 million.
- Amazon.com will pay rent of $11,000 a month over 10 years for a total of $1.3 million. In addition, the company will pay up to $1.7 million spread out over the 10 years, which reimburses the city for the cost of refitting. The interior separation is considered a landlord cost and will not be reimbursed.
- The company may end the lease within seven years, but must pay the remaining cost of refitting in a lump sum.
Reach Tran at (701) 780-1248; (800) 477-6572, ext. 248; or send e-mail to ttran@gfherald.com .
