WATERBURY — After three years of eager anticipation, online retail giant Amazon is on its way to delivering on a towering and massive state-of-the-art warehouse and distribution center to Waterbury and Naugatuck.
The announcement on April 21 that Amazon.com Services officially closed on the purchase of the 157-acre project site in the Waterbury-Naugatuck Industrial Park put the planned fulfillment center on the road to realization at long last.
With the logistics hub, Amazon is also expected to bring the equivalent of up to 1,000 full-time jobs to a part of the state with the highest regional rate of unemployment. The construction of the five-story, 3.2 million-square-foot building is additionally anticipated to create 300 construction jobs.
The tax bases of the city of Waterbury and the borough of Naugatuck are going to get a boost, and their local economies, too. The project site extends over Waterbury's southern border into Naugatuck. The two municipalities have agreed to evenly split the property tax revenue from the Amazon fulfillment center.
No construction timetable has been announced yet. The project developer has three years to complete construction under its contract, but can request two extensions totaling 18 months. Waterbury and Naugatuck officials have been advised Amazon is looking to have the fulfillment center up and running in 2027.
Work on preparing the 157 acres of hilly, rocky and wooded undeveloped land for construction of the Amazon fulfillment center is expected to start shortly. Building officials in Waterbury and Naugatuck are reviewing permit applications for this preliminary site work.
The initial site work will include construction of an access road to the project site and a retaining wall that will wrap the perimeter of the planned truck court. Applications for demolition and excavation permits will follow next, and then finally permits for the construction of the five-story, 3.2-million square-foot building once the site is readied for construction.
Once opened, the Amazon distribution center will operate 24-hours-a-day, year-round. As planned, the building will have 59 tractor-trailer bays and loading docks, and it will be equipped with the latest robotics and AI technologies to assist employees store, pick and pack goods for delivery. The plans call for a parking lot of about 600 parking spaces and a two-level parking deck with about 400 spaces.
Picking off problems one at a time
The milestone announcement on Monday that the project site had been purchased came more than three years after then- Waterbury Mayor Neil O’Leary, Naugatuck Mayor N. Warren “Pete” Hess and Gov. Ned Lamont announced Pennsylvania-based Bluewater Property Group had been selected to develop a plan for a logistics center for Amazon in the Waterbury-Naugatuck Industrial Park.
This much cheered 2022 announcement had come with a caution that much due diligence and work still had to be done to make the Amazon project happen, including needed approvals on the state and local levels. Subsequent developments underscored reason for the caveat, including a post-pandemic environment that created delays for the Amazon project.
Waterbury ended up giving Bluewater two extensions to to complete the sale and close on the property. In between, the city and Naugatuck granted wetlands and zoning approvals for the project.
Waterbury Mayor Paul K. Pernerewski Jr. said the extensions created doubt and concerns in some quarters that Amazon might pull out, and the unease was exacerbated by Amazon closing or scrapping plans for numerous fulfillment centers and delivery stations in 2022 and 2023.
"That gave some people pause that they weren't going to go forward," he said.
Amazon had also been pursuing local approvals for construction of a 97,954-square-foot "last mile" delivery center on a 20-acre East Main Street property on the city's border with Cheshire at the time the plan for the much larger fulfillment center project in the Waterbury-Naugatuck Industrial Park was announced. That smaller project did not move forward.
But Waterbury and Naugatuck officials were encouraged through the delays and other business developments by the level of interest Amazon continued to express in the Waterbury-Naugatuck Industrial Park site, and also because while Amazon was scaling back elsewhere the company's reasons for requesting the extensions were unrelated to its moves to streamline its logistics network.
Bluewater representatives had said a construction feasibility analysis and the final design for the fulfillment center were taking longer due an uncertain economic climate and what they described as complicated and challenging site conditions, including the topography and rock conditions
"We remained hopeful that they were trying to straighten things out, and that's what happened. They came back last year ready to pull the trigger, and obviously we were able to close on Monday," Pernerewski said.
Hess said he had some moments of uncertainty, but there always are ups and downs with development projects of the magnitude of what Amazon proposed in Waterbury and Naugatuck.
"I would say for the last 18 months Amazon, Bluewater, Naugatuck and Waterbury have been picking off problems one at time to get to the point where they can get their approvals, building permits, and everything they need in order to build the building," Hess said. "I guess it took a few months longer than anticipated, but not that much longer. It is a huge project."
One remaining piece of unfinished business is the sale of 17.3 acres of city-owned land in Naugatuck to Amazon. The Board of Aldermen earlier this month scrapped a planned public hearing on the proposed $325,000 sale because Amazon required more time. Pernerewski said he expects this sale will be successfully concluded in the near future. In addition to the Board of Aldermen, the city's Board of Public Works must also conduct a hearing and vote on the land sale.
The city had granted Bluewater Property Group an easement over the parcel for an access drive to the planned the Amazon fulfillment center. City officials later offered to sell the land to Amazon after they determined the lot would have limited development opportunities due to being divided by the access road and the difficult topography on its remaining sections. The city and the company negotiated the $325,000 sales price.
An application for a major traffic generator permit is also pending before the DOT. State law requires certain large developments to get permits from the Office of State Traffic Administration. The Amazon fulfillment center meets the statutory criteria.
The access to the Amazon fufillment center will be via Sheridan Drive and Great Hill Road in Naugatuck. Bluewater traffic engineers reported that 90% of the traffic to and from the site would be from employees, with only 10% truck traffic.
More recently, the Board of Aldermen in Waterbury and the Board of Mayor and Burgesses in Naugatuck approved amendments to an intermunicipal agreement concerning the Amazon project clarifying the sharing of municipal oversight and services between the city and the borough, including building inspections and the provision of fire services.
Pernerewski and Hess said Waterbury and Naugatuck have retained two land-use and construction consultants to advise and assist local officials, and Amazon is paying the cost for each. One of the advisers is retired Waterbury building inspector E. Gil Graveline, who has been retained to serve as a part-time liaison to Bluewater and Amazon for Waterbury and Naugatuck building departments.
Bluewater representatives have said the Amazon fulfillment center will have an estimated tax assessment of more than $200 million. Hess has projected that taxes would add about $2.5 million in revenue for each municipality.
Waterbury and Naugatuck have agreed to evenly divide the revenue from the real estate and personal property taxes on machinery and equipment. The city and the borough will each apply its local tax rate to the portions of the land, the building, and equipment located within its borders. Roughly 115 acres of the project site is situated in Waterbury and 52 acres in Naugatuck.
Waterbury and Naugatuck officials had explored the possibility of using Waterbury's higher mill rate to tax the Amazon fulfillment center, but state law would not allow it.
The current tax rate for Naugatuck is 41.79 mills, and the Waterbury rate is 49.44 mills. A mill is equal to $1 for every $1,000 of assessed property value, and property taxes are based on 70% of appraised market value. The city and the borough will be adopting new tax rates for the upcoming budget year. Pernerewski proposed a rate of 44.98 mills and and Hess recommended a rate of 39.79 mills based on recent grand list revaluations in both municipalities.
Amazon reviewing tax abatement options
Pernerewski said Amazon has not approached the city about property tax abatements. But the e-commerce company could apply through the state because the project site is located in enterprise zones in both Waterbury and Naugatuck, and also the Naugatuck Valley Enterprise Corridor Zone follows Route 8 from Ansonia through Naugatuck to Torrington and Winchester.
Among the incentives that state law authorizes the state Department of Economic and Community Development to provide to qualifying businesses that start up or expand in enterprise zones is a five-year, 80% abatement of local property taxes on real estate and machinery and equipment.
Amazon said in a statement that the company is reviewing the incentive options available through the state's enterprise zone program and their applicability to the fulfillment center project.
Bluewater representatives have said construction of the warehouse and distribution center is expected to take 24 to 30 months. Pernerewski said Amazon officials have advised that the company is looking to gave the fulfillment hub up and running in 2027.
Pernerewski and Hess acknowledged the expressed concerns and objections nearby Waterbury and Naugatuck residents have had concerning traffic, noise, lighting, demolition, tree clearing and landscaping, and views of the fulfillment center from their properties. They said they believe the project plans go a long way to mitigate these issues, but will not completely alleviate them, or satisfy residents who have continuing doubts and complaints about the development.
May 2, 2025
Reporter