AMAZON / Township of Hamilton Financial Agreement & Community Partnership

Information Sheet

Why are PILOTs used?

A Payment in Lieu of Taxes (PILOT) is a Financial Agreement between a municipality and a property developer, authorized under New Jersey's Long Term Tax Exemption Law (N.J.S.A. 40A:20-1 et seq.). Commonly used for projects in designated redevelopment areas, PILOT agreements serve as an economic development tool to encourage the revitalization of underutilized or long-vacant properties.

Amazon's fulfillment center in the Township of Hamilton will transform vacant land into a state-of-the-art facility that creates hundreds of full-time jobs, generates significant new municipal revenue, and drives long-term economic growth for the community.

What community investments is Amazon making as part of the project?

The Township of Hamilton and Amazon are currently finalizing a Community Partnership Agreement that establishes a $10 million community investment commitment in connection with Amazon's development of the new fulfillment center. The agreement will be entered into upon execution of the Financial Agreement between the parties.

Under the agreement, Amazon will fund a community trust dedicated to workforce development, STEM education, technical training, food security, and local community initiatives benefiting Township of Hamilton residents. The funds will be disbursed over time through an annual collaborative planning process between Amazon and the Township, creating a lasting partnership that supports economic mobility and educational opportunity for current and future generations of Township of Hamilton  residents.

Will schools benefit?

Local school districts will continue to receive their share of the land taxes generated by the property. Current annual property taxes are approximately $85,066 (a pro rata portion of the current taxes for Block 1135.01, Lot 10.01) with $44,549 going to the local school districts annually. This does not change – in fact, they will increase, based on the increased value of the land on which the project will be developed. The initial projections suggest that the land under the Amazon building will have a market value of $15 million, which would mean that the school share of the land taxes would increase to over $275,000, a jump of over 600% from the current level.

In addition, we are pursuing additional dedicated funding for local school districts through the Community Partnership Agreement outlined above.

What are the financial impacts of the PILOT?

Current annual property taxes are approximately $85,066 (a pro rata portion of the current taxes for Block 1135.01, Lot 10.01) of which the township receives approximately $24,181 as its municipal share. Additionally, the estimated Annual Service Charge over the PILOT term is approximately $123,057,621 with an estimated municipal share of approximately $94,830,546 yielding a substantial net gain to the township.

How will traffic be managed?

Traffic impacts were reviewed during the Planning Board approval process by independent traffic engineering professionals. Additional roadway and operational requirements are incorporated into the approved development plan and will be constructed at the sole expense of the redeveloper prior to the site becoming operational. The AC Expressway and Rt 322 will be the main roadways used by the new facility Leipzig Ave will be the only local street to be impacted but will receive upgrades in the process where needed.

What types of employment opportunities will the project bring to the community?

Amazon expects to employ about 750 people in full-time positions with the ability to add more as the facility ramps up operations. Those jobs will allow employees to work directly with the latest in modern logistical equipment, giving them the skills necessary to remain competitive for jobs in our increasingly automated society. The project will also create more than 300 high-paying construction jobs for a period of 18 to 24 months.

What about environmental impacts?

All environmental water, sewer, landscaping, utility, and site design issues were reviewed over the last year by the township’s professional consultants and multiple regulatory agencies as part of the approval process.  The expected building design meets all the regulatory requirements in those areas and was acceptable to all of the township’s professional experts.

*Please see Below* for AMAZON’S Most Recent Presentation to Township Committee

Amazon Presentation to Township Committee

AMAZON SITE-PLAN MAYS LANDING