KNOXVILLE, Tenn. — It was once the go-to spot in East Knoxville. Shoppers filled stores and cash registers rang all day at the East Towne Mall.
The former space is now home to a mega-retailer distribution site that still hasn't opened. That mega-retailer is Amazon.
The Amazon delivery station now sits quiet and empty where the former mall once sat. It was expected to launch in 2022 and hire hundreds of employees. However, there is now no precise opening date available.
When will the building finally open its doors to Knoxville? And did the City of Knoxville play a role? You asked, and we answered.
When will the Amazon location open?
When Amazon first announced it planned to open the Knoxville delivery station in 2021, the company projected a launch date sometime in 2022. A year after that timeframe, and there is still no opening date.
Amazon said the Knoxville delivery station still remains a big part of their plans. As to when exactly the delivery station will open, there is still no precise date. A statement from Steve Kelly, an Amazon spokesperson, is available below.
"Our delivery station in Knoxville also remains a big part of our plans for the area. Once internal construction is complete at this facility, we’ll have a better sense of a launch schedule.”
How much did it cost Amazon for the Knoxville delivery station to be developed?
The four parcels of land Amazon acquired for the project totaled to $22.1 million. Amazon said they have invested tens of millions of dollars so far in developing the facility.
Amazon did not provide an exact number for the total development cost.
Did Amazon receive any help from the City of Knoxville, Tennessee and/or utility boards?
According to Steve Kelly, Amazon spokesperson, there are no incentives for the Knoxville project and the company is not planning to pursue any.
Why the delay in opening?
Amazon said launch date projections are subject to change, mostly due to rising prices and supply chain challenges. The company said they have kept close with their Knoxville partners and are looking forward to the facility's launch down the road.
How many people will Amazon hire?
According to Amazon, the delivery station is expected to employ hundreds of people. The company said the hiring process happens 30 days before the launch date. The station will create full-time and part-time jobs. Amazon will pay future employees between $17 per hour and $28 per hour, depending on workers' positions.
The City of Knoxville had limited involvement in the Amazon delivery station. Rebekah Jane Justice, who works with the City of Knoxville, said leaders' involvement was only with the Amazon development team.
"We did work with representatives from Amazon and their development team on facilitating this site," Justice said.
She also said having Amazon in Knoxville may have a big impact on the region.
"Businesses of names big and small want to locate here," she said.
Did the City of Knoxville provide any benefits and incentives to help Amazon build the facility?
No.
According to Justice, no benefits, tax incentives or financing were involved on Knoxville's part. The city also did not give up any benefits for the facility to be built.
What did Amazon and the City of Knoxville work in?
Both parties worked together to incorporate a Knoxville Area Transit bus stop into the plans for the Amazon site.
A statement from city leaders on Knoxville's involvement in the project is available below.
"The development team donated an easement and site improvements to build out this facility. KAT also contributed to the costs. There are many other infrastructure improvements and upgrades planned not on the site but in and around the area that support growth, including Amazon, in this area."
According to Justice, the bus route was established so that when Amazon opens, their employees could use the bus line.
"We partnered with Amazon to extend the amenities that will allow for new stops in the area," Justice said. "The stop that's on the former mall site is not activated yet. It's planned for a future stop."
A few miles away from the Knoxville delivery station sits the Amazon Alcoa Fulfillment Center.
The location has already opened, with employees already at work. At this site, Amazon employs about 800 full-time staff. According to Blount Partnership, the company invested no less than $200 million in Blount County to buy the property and work on the facility.
Although both locations are owned by Amazon, they both have different functions.
What's the difference?
The Amazon Alcoa location is a fulfillment center, while the Knoxville location is a delivery station.
At the Knoxville delivery station, orders will be prepared for last-mile delivery to customers. It's effectively the last stop for packages before arriving at customers' doors.
The fulfillment center focuses on picking out products for customers' orders, packing them and shipping them.
Was the Amazon Alcoa center delayed?
Yes.
According to Blount County Partnership, construction of the facility was completed in the summer of 2022 and it didn’t become operational until the summer of 2023.
"It's fully operational now. It was kind of sat for a year because of supply chain issues, trying to get product into the facility. But now it's fully operational," said Jeff Muir with Blount County Partnership.
Were there incentives involved for Amazon Alcoa?
According to Blount Partnership, no incentives were given to Amazon from Blount County, the City of Alcoa or the Industrial Development Board.
The partnership said, "Amazon is not asking to take anything away from the community other than its support."
How did Amazon and Blount County work together?
Blount Partnership reports that the county's Industrial Development Board has complete possession of Amazon's assets.
IDB charges a lease back to Amazon for the use of its assets. Leaders said that the amount charged is equal to the property taxes Amazon would have paid. IDB said they arranged this program to make sure no property taxes paid by Blount County neighbors are used for Amazon benefits.
The arrangement is similar to Payment In Lieu of Taxes Programs used across the U.S. that are designed to incentivize development and businesses in specific areas. With those programs, businesses are able to sign on and effectively guarantee they will pay a specific rate for a set amount of time before officially claiming ownership of a property.
According to state records, Amazon was part of a PILOT agreement starting in 2021 for a property located near the current fulfillment center site in Alcoa. State records show the estimated value of the property located near the fulfillment center site was around $737,600.
Did Blount County make changes around Amazon Alcoa?
Blount Partnership said IDB borrowed $12 million from Alcoa and Blount County to make roadway improvements to Cusick Road and Singleton Station Road.
"Singleton Station Road was nearly not capable of handling the big truck traffic, and so there was a kind of a side road built off Cusick that connects directly into the Pellissippi Parkway," Muir said.
IDB made these adjustments to prevent neighbors from being impacted by Amazon’s traffic and operations. IDB plans to use Amazon’s lease payments as way to pay back the full amount to Alcoa and Blount County.
Both road improvements are now completed.