Gov: Amazon ‘largest jobs commitment’ in Tennessee history

Gov. Bill Haslam’s office says Amazon’s plans for a Tennessee operations hub expected to create 5,000 jobs represent “the single largest jobs commitment made by a company in Tennessee’s history.”

A Haslam news release Tuesday says Amazon will invest $230 million-plus to locate its Operations Center of Excellence in Nashville Yards, a 15-acre (6-hectare), mixed-use downtown development. Holly Sullivan of Amazon Public Policy says Nashville will become the eastern U.S. hub for its retail operations division.

“This is a game changer for Tennessee. The ripple effect of Amazon’s decision to invest $230 million in our state and create 5,000 high-paying jobs in downtown Nashville will be felt for years to come,” Haslam said in the news release. “Amazon has spent the past year searching the nation for the best possible locations to expand and it chose Tennessee because of our business-friendly policies, low taxes and skilled workforce. I thank Amazon for its continued investment in Tennessee.”

Amazon’s new 1 million square-foot Nashville office space will host tech and management functions.

Amazon says it will receive up to $102 million in performance-based incentives based on the creation of 5,000 jobs with an average wage exceeding $150,000 in Nashville.

The state says Amazon currently has six Tennessee facilities employing more than 6,500 people.

Incentives offered to Amazon:

— Performance-based incentives of up to $102 million based on 5,000 jobs created over 7 years with an average wage of over $150,000.

— Cash grant of up to $15 million based on $500 for each job created over the next 7 years.

— Job tax credit to offset franchise and excise taxes from the state of Tennessee of $21.7 million based on $4,500 per new job over the next 7 years.

City Benefits:

— 5,000 full-time jobs with an average wage exceeding $150,000.

— More than $230 million in investment.

— 1 million square feet of energy-efficient office space.

— Estimated incremental tax revenue of more than $1 billion over the next 10 years.