Amazon to build distribution center in Pullman, bringing 100s of jobs: alderman

A Pullman industrial parcel once touted as the site of a Chicago casino would, instead, house an Amazon distribution center — but only if the 150,000 square foot warehouse can be up and running by Oct. 31.

Local Ald. Anthony Beale (9th) said that would require Mayor Lori Lightfoot’s administration to expedite building permits and put a so-called “Class 6B” property tax break on a fast-track toward City Council approval.

According to Beale, Amazon needs nothing more than that before forging ahead with construction of a 40-acre distribution center at 104th and Woodlawn at a site once owned by Ryerson Steel. No tax-increment-financing subsidy or city assistance of any other kind is required.

Amazon declined to comment. A source at the company said that while no deal has been finalized, it is considering a delivery station at the Pullman site, not a full warehouse. In the company’s lexicon, a delivery station is a smaller operation than a warehouse, or what it calls a fulfillment center.

The company on Jan. 7 announced plans for such a delivery station on the site of the old Maywood Park racetrack in Melrose Park. It said then that the facility would employ several hundred full- or part-timers. It is designed to help Amazon complete “last mile” deliveries for customer expecting quick service.

In its official statement, Amazon said, “We are constantly exploring new locations and weighing a variety of factors when deciding where to develop sites to best serve customers, however, we don’t provide information on our future roadmap.”

“We’ve moving on a very aggressive time-frame. We need to do direct introductions. We need to get things done in a timely manner in order to make this happen by Oct. 31,” Beale said Monday.

“It’s a pre-fab building. They’re gonna work overtime. They’re gonna work long hours. And we’re gonna get this thing open and operational by Oct. 31. We have a preliminary deal to make this happen. ... [The only roadblock] is that the city doesn’t basically move mountains. We have to do direct introductions. That’s the only thing that’s gonna hinder this thing.”

Beale is a 20-year veteran alderman who was stripped of his committee chairmanship for opposing Mayor Lori Lightfoot’s choice of Ald. Scott Waguespack (32nd) as Finance Committee chairman. He has since become one of the mayor’s most outspoken council critics.

Is Beale concerned their political differences could get in the way and preclude the expedited schedule that Amazon requires?

“No. Not at all. This is about jobs. This is about moving the community forward,” he said.

“We’ve moved projects like this before where we have tight timelines. I’m confident that this will move as fast as we need it to move.”

Beale noted that the $20 million, 135,000-square-foot U.S. Bank Pullman Community Center on the other side of Woodlawn near the proposed Amazon site was completed in eight months. It’s the fifth-largest sports, recreation and educational center in the country.

“We can get this thing built [for Amazon]. No doubt. No question. The only two things we need out of the city’s process is the Class 6B to go through. A direct introduction. And approve the permits in 30 days,” he said.

At an unrelated event, Lightfoot said Monday she doesn’t think “there is anything to talk about yet” because city officials “haven’t heard anything from Amazon.” She accused Beale of getting “a little ahead of himself.”

Hours later, however, the mayor’s office acknowledged that, although it hasn’t “connected with Amazon on this deal directly,” city planners have “spoken with the developer to discuss underlying zoning” for the proposed site.“

“The City welcomes opportunities to drive inclusive economic growth for our South and West Side communities, and Pullman is one of our priority areas,” a statement from the mayor’s office said.

Beale said Chicago Neighborhood Initiatives and the Ryan Companies, Amazon’s designated developer, have been in contact with the city and “started clearing” the tree-filled site last Friday.

The land is owned by CNI, a non-profit created by U.S. Bank that is run by David Doig, who served as planning and development commissioner and Chicago Park District superintendent under former Mayor Richard M. Daley.

For years, Beale has touted the site at 104th and Woodlawn as a potential home for a Chicago casino. The Amazon distribution center would put the casino dream to rest. According to Beale, the project would create 500 temporary construction jobs and “a few hundred” permanent jobs starting at $15-an-hour.

“A casino is definitely more jobs and more opportunity. But it was an uphill battle for a casino. And who would not want the world’s largest company in the ward?” the alderman said.

And why did Amazon choose Pullman?

“They’re doubling down on their investment. We do have the Whole Foods distribution center. It’s great access off the expressway. You can still get to Indiana, Iowa, Wisconsin and all of Illinois. It’s a great location,” Beale said.

“We have the logistics center at Olive Harvey [college] where we’re getting people with [commercial drivers licenses]. We’re gonna have to get people trained to get their CDL’s. And so, it just works. It’s a great story. It’s a great business model. We’re really excited.”

Doig could not be reached for comment. Peter Strazzabosco, a spokesman for the city’s Department of Planning and Development, had no immediate comment on Beale’s request to fast-track permits and the Class 6B property tax break.

An Amazon source said the company typically seeks no tax breaks to build a delivery station.

Amazon’s request for immediate help may not be as simple as it sounds, if Chicago Federation of Labor President Bob Reiter has anything to say about it.

Reiter disclosed his opposition to the lucrative tax break in a statement that started by highlighting Pullman’s role in the 1894 railroad strike that would “forever change the direction of the American Labor movement.”

The CFL has an ownership stake in Sun-Times Media.

“Today, more than a century later, a company with an ultra-wealthy chief executive and a long track record of anti-union, anti-worker behavior is rumored to be planning a massive facility in the heart of Pullman – and to be asking for a tax break from Chicago’s working families to build it,” Reiter was quoted as saying.

“The Chicago Federation of Labor calls on Amazon to build union, operate union, and participate in a robust community engagement process around any proposed facility. The CFL also opposes any effort to hand out tax breaks to anti-union companies, especially ones that rake in more than $11 billion in profit without paying any federal income tax.”

According to the Cook County assessor’s website, Class 6B property tax breaks are “designed to encourage industrial development throughout Cook County by offering a real estate tax incentive for the development of new industrial facilities, the rehabilitation of existing industrial structures, and the industrial re-utilization of abandoned buildings.”

“Properties receiving the Class 6B will be assessed at 10% of market value for the first ten years, 15% in the 11th year and 20% in the 12th year. This constitutes a substantial reduction in the level of assessment and results in significant tax savings,” the website states.

Crain’s Chicago Business was the first to disclose the Amazon warehouse project.

Contributing: Stefano Esposito, David Roeder