AMSTERDAM -- Developers of the 3.2 million-square-foot Amazon distribution center in the town of Florida will fund engineering and construction costs to upgrade an Amsterdam sewer line that would serve the proposed facility.
"We've needed to improve that line, any additional capacity would have been a real issue, so we need to expand it if we're going to include them, and their willingness to fund that is, of course, a good thing for us," Mayor Michael Cinquanti said.
City Engineer Mike Clark confirmed for developers in recent months that the city has the capacity to provide water and wastewater services for the facility, but informed project engineers that a sewer line on Broadway would need to be upgraded.
A roughly 300-foot section of city sewer line on the hill serving industrial facilities on Route 5S in the town of Florida drops from a 12-inch line to an 8-inch line, restricting flow during periods of high volume.
The proposed Amazon distribution center may produce up to 57,000 gallons of wastewater a day, adding to the existing flows carried by the line.
Developers have agreed to fund the replacement of the smaller pipe with a 12-inch line to eliminate the issue and have already placed $25,440 in escrow to cover engineering costs to design the sewer upgrade.
Amazon has committed to placing additional funds in escrow to cover the total cost of construction and related inspection services when bids are eventually obtained by the city.
"We're going to administer the engineering and the construction project, because it's our facility," Clark said. "We'll administer the contract, no cost to the city."
The Common Council on Tuesday authorized an agreement with KB Engineering & Architecture, PC for engineering services to design the sewer upgrade. Clark noted that the firm is already working with the town of Florida and Montgomery County to review the project plans.
The 3.2 million-square-foot first-mile distribution center would stand 103.5 feet tall, featuring five floors with over 608,000 square-feet of functional space on each level. The roughly 137.2 acre project site is adjacent to Amazon's existing last-mile facility on Route 5S. The proposal remains under review by the Florida Planning Board.
Building plans would be optimized for robotic bin storage systems instead of traditional warehouse racking while upper floors would use gravity-assisted material handling equipment to convey goods to outbound shipping areas on the ground level. Items would travel from the first-mile facility through the logistics network to last-mile facilities from which orders are filled.
The facility is expected to create more than 300 construction jobs followed by at least 750 permanent jobs. Project representatives have estimated the assessed value of the facility will be over $150 million.
Amazon would own and operate the distribution center. Winstanley Enterprises currently owns the project site. BMG Albany LLC is the developer, which has the same Pennsylvania address as industrial real estate developer Bluewater Property Group.
Although the facility is proposed in the town, Cinquanti said it would be beneficial to the city and surrounding area, including the growth of water and sewer revenue to Amsterdam.
"But most importantly, having a facility like that in our backyard is going to be a wonderful thing for employment in the area. It's going to be a wonderful thing for the economy of our area," Cinquanti said. "We are going to be very, very happy to have them as a neighbor and looking forward to servicing them any way we can, working with the town, any way we can, and need to to make that happen."
Florida planning officials have indicated they don't foresee any major barriers to the proposal at this stage, with developers and engineers seemingly anticipating and developing plans to mitigate potential impacts.
Traffic is the main concern for which officials are reserving judgment until receiving a response from the state Department of Transportation to the traffic plans submitted by developers. Project representatives have said traffic volumes associated with the facility could be accommodated on local roads, which would continue to operate at a "good level of service."
Three driveways are proposed at the site that would separate employee traffic from operational and truck traffic. A signaled intersection would be installed on Route 5S at the central driveway across from Beech-Nut's main entrance and the Target Distribution Center's truck entrance. Route 5S would be widened at that point and a left turn lane into Amazon would be added.
Site hours would likely be split into two shifts with workers traveling to and from the site before peak travel times in the morning and afternoon. Workers from different departments would likely have their start and end times slightly staggered to further reduce congestion.
Still, residents worry truck and employee traffic from the facility could worsen congestion along Route 5S and Route 30 heading to the state Thruway. Tractor trailers on rural roads in surrounding communities when drivers miss exits is an additional concern. Locals have urged officials to consider options to relieve issues.
Likewise, Cinquanti acknowledged truck traffic is a concern for Amsterdam. The city engineer will review traffic studies and anticipated truck routes related to the project as a precaution.
"We do not envision that being an issue, but we are checking into that just so that we are prepared and we can act accordingly," Cinquanti said.