Palatine confirms Amazon is opening distribution center there

  • Construction continued Monday on Amazon's 162,000-square-foot distribution facility off Hicks Road just west of Route 53 in Palatine. The building could be ready as soon as October.

      Construction continued Monday on Amazon's 162,000-square-foot distribution facility off Hicks Road just west of Route 53 in Palatine. The building could be ready as soon as October. Mark Welsh | Staff Photographer

  • Welders and painters were part of the construction that was in full swing Monday for an Amazon warehouse and distribution center off Hicks Road south of Northwest Highway in Palatine.

      Welders and painters were part of the construction that was in full swing Monday for an Amazon warehouse and distribution center off Hicks Road south of Northwest Highway in Palatine. Mark Welsh | Staff Photographer

  • Construction continued Monday on Amazon's distribution facility off Hicks Road in Palatine.

      Construction continued Monday on Amazon's distribution facility off Hicks Road in Palatine. Mark Welsh | Staff Photographer

  • Amazon will move into a 162,000-square-foot warehouse and distribution facility in Palatine. Work on the building continued Monday.

      Amazon will move into a 162,000-square-foot warehouse and distribution facility in Palatine. Work on the building continued Monday. Mark Welsh | Staff Photographer

 
 
Updated 5/11/2020 7:23 PM

Amazon will move into a warehouse and distribution facility under construction off Hicks Road south of Northwest Highway, and Palatine officials hope the online retail giant's arrival sparks more development in that industrial area.

"This is a good bit of news for us, for sure," Mayor Jim Schwantz said Monday. "It's the right kind of use for that area. It's a light draw on our services. It's not going to take a ton of water. It's not going to take police or fire calls. We know Hicks Road is built to be able to handle the additional traffic."

                                                                                                                                                                                                                       
 

Palatine officials do not yet know how many will be employed at the facility. Amazon spokeswoman Shone Jemmott did not provide specifics but said the Palatine delivery station is part of the company's continued investment in the Chicago area and will "provide great job opportunities for the talented workforce."

Rosemont-based Conor Commercial Real Estate is developing the 162,000-square-foot Amazon building on 18 acres where the H.B. Fuller Co. sealant factory previously operated. Conor expects the building at 315 S. Hicks Road to be complete as early as October.

Conor purchased the Hicks Road property last summer and demolished the vacant H.B. Fuller building. H.B. Fuller wound down its operations about three years ago.

An original plan approved by the Palatine village council in 2019 was for a 337,800-square-foot speculative distribution and warehouse center. But the proposal was reduced to accommodate the Amazon center, which also will include office space.

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In February, the council approved the revised site plan for the 162,000-square-foot structure, but officials said they could not publicly name the future occupant at that time due to a confidentiality agreement. That agreement no longer applies to the village.

"The village is very excited that Amazon selected a location in Palatine for their ongoing expansion in this market," Village Manager Reid Ottesen said. "We look forward to welcoming them to the community later this year when the construction is completed. It is nice for the village to also avoid any long-term vacancy of the former H.B. Fuller property."

Conor Executive Vice President Brian Quigley said Amazon is expected to use 600 sprinter vans from the state-of-the-art facility that'll be designed for efficient loading. The last-mile logistics operation will serve the Northwest suburbs, according to Conor.

"Between the demographics of the Palatine area, the size and design of the development, and the easy access to Route 53 and Northwest Highway, we are confident this facility will be an essential part of our customer's business long term," Quigley said.

Last year, the Palatine village council recommended that the Cook County Board approve a 12-year property tax break for Conor. Under the county's 6B tax classification program, a property is assessed at 10% of market value for the first 10 years, 15% for the 11th year and 20% in the 12th year. Without the incentive, the land would be assessed at 25% of market value.

Amazon has plans for other suburbs, including Downers Grove, where Mayor Robert Barnett says the company plans to move into roughly 500,000 square feet of space in two new warehouses in the Bridge Point Downers Grove industrial park along Finley Road. He said Amazon is expected to hire 120 to 130 workers there.

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