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UW-Madison’s Red Gym could soon be home to the latest physical location of Amazon, after the university’s governing board approved a plan for the online retail giant to open a package pickup location inside the historic campus building.

One Downtown business owner says she’s concerned the new location could hurt nearby retailers, however.

The Amazon Pickup Point, called Amazon@UWMadison, would take up about 2,000 square feet on the first floor of the Red Gym, 716 Langdon St., and is set to open next spring.

A UW-Madison spokesman said the agreement with Amazon hasn’t yet been finalized but was approved Thursday by the University of Wisconsin System Board of Regents.

It calls for a five-year contract between UW-Madison and Amazon that will earn the university hundreds of thousands of dollars in commissions from the packages. UW-Madison would be guaranteed at least $100,000 per year from Amazon, but a description of the contract given to the Regents says commissions are expected to be higher.

The agreement will be automatically renewed for another five years unless the university or Amazon backs out.