Amazon’s plans for a giant Wisconsin facility is ‘still a go’
This rendering shows part of what would be a five-story, 3.4 million-square-foot Amazon distribution center and warehouse at the intersection of Highway TT and Highway N in the village of Cottage Grove. (M+H ARCHITECTS)
A year after it was passed, construction has yet to begin on what would be one of Amazon’s largest warehouse and distribution centers in the U.S.
The village of Cottage Grove and retail giant say the $200 million project is still a go for Dane County.
Unanimously approved by village of Cottage Grove officials in February 2022, Amazon, with developer Trammell Crow Company, plans to build a 3.4 million-square-foot warehouse and distribution center at the intersection of highways TT and N just north of Interstate 94.
Trammell Crow is one of the country’s biggest commercial real estate developers and has been behind several other Amazon projects around the country.
Once erected on the 145-acre site, the five-story building will employ roughly 1,500 people and operate 24 hours a day, seven days a week as a “middle mile” facility. That means trucks would take items from the facility to other distribution centers, where vans would carry them to customers.
The building is expected to have 60 loading docks, 326 trailer parking stalls and roughly 1,700 parking stalls for employees and visitors. About 90,000 square feet of the center will be office space.
Construction on the warehouse drew opposition a year ago from some Cottage Grove residents but praise from local economic experts. Some Cottage Grove residents raised concerns about the size of the project, as well as increased traffic and noise and light pollution, while business leaders touted the project as a financial boon and jobs creator for the county.
“We’re committed to opening a facility in the village of Cottage Grove and look forward to working with the community and other partners to launch this site,” Amazon spokesperson Alisa Carroll wrote in an email. “Planning is underway, and we’ll share more as soon as the construction timeline is set.”
When asked about headlines that sprang up last fall in Bloomberg and other major news outlets saying Amazon was abandoning warehouse projects around the country while closing other facilities, Carroll said “we’re constantly evaluating our network based on business needs and to improve the experience for our employees, customers, partners and drivers.”
“As part of that effort, we may close older sites, enhance existing facilities, or open new sites,” she said, adding that in January, Amazon opened two new fulfillment centers in the Midwest, and since 2020 has added more than 350 new modern facilities to our network in the U.S. alone.”
Matt Giese, village of Cottage Grove administrator, said in an email that the municipality remains in regular communication with the developer and Amazon on the warehouse project, which is located in a 300-acre tax incremental financing district — meaning the warehouse is eligible to receive tax assistance from the village to get built.
“We anticipate they will commence construction at some point this year,” Giese wrote. “The next step would be for Amazon to enter into a development agreement. We foresee the agreement being considered by the board in the coming months and for Amazon/Trammell Crow to pursue building permits in the months following approval of the agreement.”
A development agreement, Giese explained, “memorializes” the village approvals the warehouse project received last year for its concept and design. It could also include negotiations for tax assistance, he said.
Last year, Cottage Grove officials said Amazon had not yet sought said assistance, and it’s unclear whether that will change. But Amazon has made national headlines in the past for requesting hefty tax incentives.
