COVER: Amazon’s 1.25 million-square-foot fulfillment center in Schertz.

Update

8:01 a.m. WEDNESDAY, JULY 22: New story added on San Marcos City Council consideration and approval of Amazon economic development incentive agreement.

All eyes on Seattle after San Marcos council gives Amazon deal unanimous approval | 07/22/15



Earlier

8:13 p.m. TUESDAY, JULY 21:

#SMTX council unanimously approves ec dev incentive agreement for @amazon distribution hub. At least 350 jobs. Maybe as many as 1,000. — San Marcos Mercury (@themercurynews) July 22, 2015

Guerrero: No celebration tonight. #SMTX is finalist for @amazon‘s distribution hub but “many steps left” before jobs are in the bag. — San Marcos Mercury (@themercurynews) July 22, 2015

Thomaides pressing to list hour wage range in @amazon contract, number that were apparently communicated verbally to council members. #SMTX — San Marcos Mercury (@themercurynews) July 22, 2015

Total payroll not included in docs publicly available before tonight’s mtg. Someone said the # out loud a few mins ago but we didnt catch it — San Marcos Mercury (@themercurynews) July 22, 2015

Total payroll not included in docs publicly available before tonight’s mtg. Someone said the # out loud a few mins ago but we didnt catch it — San Marcos Mercury (@themercurynews) July 22, 2015

In teeing up @amazon deal, city mgr says something we didn’t quite know: Currently, #texas, collects sales tax on online transactions #SMTX — San Marcos Mercury (@themercurynews) July 22, 2015

In teeing up @amazon deal, city mgr says something we didn’t quite know: Currently, #texas, collects sales tax on online transactions #SMTX — San Marcos Mercury (@themercurynews) July 22, 2015

Earlier

by BRAD ROLLINS

5:36 a.m. MONDAY, JULY 20: Amazon.com executives are considering locating a $191 million fulfillment center on East McCarty Lane in south San Marcos, a project that would carry the promise of at least 350 full-time jobs, according to terms negotiated between company and city officials.

On Tuesday, the San Marcos City Council will consider an economic development incentive agreement under which the city would forgo 40 percent of property taxes on Amazon’s real estate for ten years and 85 percent of property taxes on equipment and inventory, also for ten years. In addition, for 20 years, San Marcos would rebate between 15 percent and 85 percent of its 1.5-cent sales tax, according to a sliding scale tied to annual gross sales shipped out of the location.

The Seattle-based company will maintain a payroll of at least 350 full-time workers for the duration of the local incentives. Amazon has an option to renew the property tax portion of the agreement for an additional five years if it employs at least 1,000 full-time workers for five of its first 10 years in operation.

The company will invest $60 million in site preparation and construction of a 855,000-square-foot building on 101 acres located in the 1300 block of McCarty Lane. Company officials say they will spend an additional $131 million furnishing and equipping the fulfillment center and stocking it with inventory.

Under the agreement, Amazon will begin construction before Dec. 31 this year and begin operations by Jan. 1, 2017.

On July 7, the San Marcos City Council gave initial approval for rezoning the property from general commercial to heavy industrial, an application made in the name of of Jones & Carter Inc., a San Antonio-based engineering firm.

Map

CORRECTION 9:53 a.m. JULY 21: An earlier version of this story should have said that the city of San Marcos collects a 1.5-cent per dollar in sales tax, not two cents per dollar.