BELOIT, Wis. (WMTV)-- A proposed development in Beloit could bring a significant economic impact to Rock County.
On Monday, the Greater Beloit Economic Development Corporation (GBEDC) approved a Purchase and Sale Agreement. The Beloit City Council also approved a Development Agreement with Seefried Industrial Properties, Inc. after coming out of closed session Monday night.
"Ladies and gentleman, I am privy to share with you on this isolated occasion prior to closing, that the anticipated tenant of this project is Amazon," said Beloit City Manager Lori Curtis Luther.
NBC15 spoke with Seefried Industrial Properties Tuesday afternoon and the company could not confirm or deny the client interested in the property was Amazon. They said the name of the tenant would not be released until closing.
Seefried agreed to purchase the 80-acre site located on Gateway Boulevard near Colley Road.
“The GBDEC is conveying the site to the developer for a dollar an acre with net cost $80.08 due to the extensive economic impact this project will have on the greater Beloit community," said GBDEC Executive Director Andrew Janke. "The agreement also includes a repurchasing agreement that allows the GBDEC to repurchase the property if Seefried does not build the building in five years.”
Janke said the agreement allows 180 days of due diligence where Seefried can evaluate the site for development. Preliminary grading work is anticipated to begin as early as Oct. 15, prior to closing. Seefried agreed to restore the property if the development does not move forward.
According to the agreement, Seefried allows the city to repurchase the site if the one million square-foot facility is not constructed within a five-year period.
Janke said Seefried plans to deliver the completed building to the proposed user by Sept. 30, 2020.
“We are thrilled about the opportunities this development will provide our community and beyond,” said Janke.
Luther said there are no city subsidies to support the project. The development agreement provides a guarantee that Seefried or Amazon shall construct and install any traffic control or off-site infrastructure improvements after a traffic study is completed. The study is currently underway.
Luther said additional information about the project will be released upon closing. Luther said at Monday's meeting, closing could be as soon as 30 days or at the end of the 180 day period.
“This proposed development would provide our community with increased property value, which will benefit all of Beloit,” said Luther.
In March, the Wisconsin Economic Development Corporation (WEDC) awarded up to $7.5 million in tax credits to Amazon. The amount of credits received ties into the number of jobs created and the amount of capital investment the company makes through 2024.
An Amazon distribution center is currently being built in Oak Creek. Amazon officials said they expect to create 1,500 jobs at the 640,000 square-foot fulfillment center located at Ryan Business Park just off I-94. It is set to open in the first quarter of 2020. Those positions could possibly bring $40 million in gross wages the following year.
An Amazon spokesperson said the Oak Creek jobs would be full-time with benefits, paying a minimum of $15 per hour.
Amazon currently employs more than 4,000 people across its Wisconsin operations and the company spokesperson said they invested more than $1 billion in the state.
It's Kenosha fullfillment center opened in 2015. That location is one-million-square feet. It broke ground in 2013. It added a 500,000-square-foot sorting center for a combined 1.5 million square feet and a total investment of nearly $250 million. It received a combined $32.3 million in incentives from Wisconsin and the City of Kenosha.