City of Toledo Sells Former Southwyck Shopping Center Site to Amazon
The city of Toledo is pleased to announce it has officially sold the former Southwyck Shopping Center property to Amazon. In March, Toledo Mayor Wade Kapszukiewicz announced the city’s plan to sell the 58.5-acre property to the Fortune 500 company to build and operate a delivery station. Less than 75 days after entering into a purchase agreement, the city transferred ownership of the property.
“This project is moving forward at an unprecedented pace,” said Brandon Sehlhorst, commissioner of economic development for the city of Toledo. “Thanks to the support of Toledo City Council, the City Plan Commission, and the economic development team, the city was able to transfer the property in record time to meet Amazon’s aggressive construction timeline of being open by end of 2020. Construction has already started on the site.”
Amazon will construct a 150,000-square-foot delivery station on the property that will provide delivery services within a 45-minute radius of the site. The $25 million facility will directly employ 110 people and 300 independent delivery contractors.
“Our primary goal was to put this property back into productive use in a manner that strengthens the surrounding area through the creation of new jobs and new capital investment,” Mayor Kapszukiewicz said. “I believe this project will accomplish that goal through the creation of more than 400 jobs that will have a multiplier effect on the Reynolds Road Corridor.”
The city has implemented a tax increment financing (TIF) area for the site that allows the city to recoup its entire $3.6 million investment in the property.
“Unfortunately, the property only appraised for $1.5 million, which is significantly less than the $3.2 million for which the city purchased the property in 2014,” Mr. Sehlhorst said. “Even if we would have sold it for the appraised value, the city would have stood to lose $1.7 million in payback. The TIF allows the city to be made financially whole over a period of time.” No other incentives were offered by the city.
“This is another step – a huge step – toward the revitalization of this entire area and the Reynolds Road corridor. I am very excited to welcome Amazon to our community and thank them for investing in Toledo,” Mayor Kapszukiewicz said. “This project demonstrates the importance of having pad-ready development sites available within the city in order to attract and retain jobs for our residents.”
Signature Associates was the city’s commercial real estate broker on the project.
Pictures can be found at this link: https://www.dropbox.com/sh/d4k7myd5h81uqoh/AADF04hllkaIAy8BR2kpQ5Ira?dl=0