What is RI doing to entice a new Amazon.com warehouse here?
July 13th, 2012 at 2:37 pm by Ted Nesi under Nesi's Notes, On the Main Site
Amazon.com and Rhode Island have had a rocky relationship since 2009, when the e-commerce giant cut off its affiliates here in retaliation for the General Assembly’s passage of an “Amazon tax.”
Perhaps the time has come for a détente. Amazon CEO Jeff Bezos is embarking on a building spree and putting up warehouses all over the country to compete with brick-and-mortar retailers by cutting shipping times, Farhad Manjoo reports for Slate:
Some of these facilities are very close to huge swaths of the population. Amazon is investing $130 million in new facilities in New Jersey that will bring it into the backyard of New York City; another $135 million to build two centers in Virginia that will allow it to service much of the mid-Atlantic; $200 million in Texas; and more than $150 million in Tennessee and $150 million in Indiana to serve the middle of the country. … Amazon will open two huge distribution centers near Los Angeles and the San Francisco Bay Area, and over the next three years it might open as many as 10 more in the state. In total, Amazon will spend $500 million and hire 10,000 people at its new California warehouses.
The Providence metropolitan area is home to 1.6 million people, and the I-95 corridor between Boston and New York cuts right through Rhode Island. The state has more than 60,000 unemployed workers and plenty of communities desperate for economic development. Amazon could build one of its warehouses here and have easy distribution access to consumers in Rhode Island and Massachusetts, not to mention inexpensive labor. And if it did open a facility here, it would start collecting sales taxes and paying property taxes, too.
Governor Chafee recently hosted site-selection consultants - is anyone in Rhode Island doing anything to reach out to Amazon.com and see if the company would consider building a warehouse here? Is anyone even aware that they should be, considering what a distraction 38 Studios has become?
(On a somewhat related note, The Washington Post reports growing momentum for e-sales taxes.)
Tags: amazon tax, amazon.com, economic development
Nesi's Notes covers politics and the economy in and around Rhode Island for WPRI.com. (Twitter: 
Cmon, does anyone really believe our leaders will actually do something for the state. Is anyone aware of the dredging taking place along new england sea ports. That’s right. Sea ports along the east coast are preparing for major shipping from the middle east. This is in preperation for 2014. It’s not like we have a place like, say, Quanset!. Why would Amazon look at us when we show no proactive thinking toward recovery. Here’s an idea. Let’s raise taxes again and continue to blame the unions. (No I’m not in a union.) I do hope Amazon takes a look at us, we legalized pot. Isn’t that Great. Truley unbelievable
The wages maybe low but with how much that would be pilfered or stolen, it would not be cost effective to open an operation in Rhode Island.
how many times have i heard the saying. rhode island is in a perfect spot for business. in between two major cities. nothing zip zero nada. i moved to massachusetts and my three children have moved to massachusetts and vermont. they never looked back.
The only business that has a future in Rhode Island is the moving van field. There will continue to be more and more folks taking a one way hike out of this veritable paradise. Apparently the “journalist” believes his own twaddle.
Why so hostile, YRI? Nice use of scare quotes, though.
YRI, you are 1000% correct. That nitwit Chafee can host all the site-selection consultants he wants, that doesn’t mean that any of them are crazy enough to recommend this tax and spend sewer. Twaddle, good word, accurate description of this article. And as soon as I finish up some personal business, I’m getting out of Tax Hell and Providence Plantations ASAP.
it’s the knowledge district. wait to the next life. yawn.
And, why are you so enthralled with the idea that the political culture of Rhode island is capable of self correction? Take a long view… take a more than cursory review of the demographic trends… take a look at the lack of real political electoral choices. What you refer to as hostile, is a realistic overview of what this state is. I’m just not buying what your selling.
This is exactly the kind of thing the RI EDC should be nurturing.
The problem is that the EDC is filled with too much dead wood who would have to show in some sort of a business development report why RI sits at the bottom of the business unfriendly list on this sort of initiative.
The Gov would then have to address the problems contained in a report in an “oh my God” moment.
Sorry Ted, but the RI modus operandi is to remain silent and hope nobody notices.
Ooopps! Did I say bottom of the business unfriendly list. I meant bottom of the “business friendly” list.
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Opening a center in RI may help the government and people in making the economy flow. According to business analyst it will help company in effective distribution network.