Work has begun on the site where Amazon’s robotics fulfillment center will emerge. (Photos by Jonathan Spiers)
The checkered flag is out at Project Speedway, with online retailer Amazon crossing the finish line first.
The governor’s office announced on Wednesday that Amazon will establish a robotics center in the 2.6 million square foot industrial complex Hillwood Enterprises of Texas is planting on land north of Richmond Raceway.
The center is expected to create 1,000 jobs, despite the robotic technology involved in the facility. It is scheduled to commence in 2022 and will be the first of its kind in Central Virginia. A similar facility, in Suffolk, was announced last year and will open later this year.
Wednesday’s announcement confirms Amazon’s involvement in the development, code-named Project Speedway. Based on an area of 650,000 square feet, the five-story building is one of several nationwide that Hillwood has developed with the online retailer signed up as a tenant.
The building will rise on a 120-acre portion of the 247-acre site, which spans the Richmond Henrico Turnpike and is used for overflow parking for the raceway. Last week, the raceway sold that 120-acre lot, at 5901 Richmond Henrico Turnpike, to Hillwood for $ 7.7 million.
The 247 acres stretch over the Richmond Henrico Turnpike just north of the race track.
The rest of the land, at 5900 Richmond Henrico Turnpike, remained in ownership of the race track from Wednesday, according to Henrico ownership records. The county recently rated that property at $ 1.5 million. Property 5901, where work is already underway on the site for the project, was valued at $ 2.9 million.
The announcement did not specify how much Amazon plans to invest in the facility. A spokeswoman said the company is not disclosing that figure.
“I can tell you that we are excited about the great jobs we have created statewide that provide competitive pay and comprehensive benefits from day one,” said Courtney Norman spokeswoman. “We are proud to call Virginia home and will continue to invest in the state and communities in which our employees live and work.”
Norman said the facility’s robotic technology is designed to help the workers who will be working next to the machines sort, package and ship smaller goods such as books, electronics and household items. She said the robots are not intended to eventually replace workers.
“It really affects the way our employees perform their day-to-day tasks,” said Norman. “It makes it easier for them, as they work with that assisted and collaborative technology to expand human reach, and it also frees up their time for more skilled tasks.”
A rendering of the five-story, 2.6 million square foot building planned for Amazon’s facility. (Thanks to Hillwood Development Facebook)
The project came about through coordination with the Virginia Economic Development Partnership, the Henrico Economic Development Authority, the Port of Virginia and the Greater Richmond Partnership.
Anthony Romanello, executive director of the Henrico EDA, said the process began last year when the raceway and Hillwood approached the county about repurposing the land for industrial development, leading to a repurposing application filed last fall.
Hillwood has done a number of projects with Amazon and NASCAR. That’s the marriage, if you will, to bring these three groups together, ” said Romanello, adding that Amazon came into the picture after the rezoning was approved.
Based in Dallas, Hillwood is headed by Ross Perot Jr., the son of the late 1990s businessman and presidential candidate Ross Perot Sr. It has developed dozens of industrial projects across the country and in Poland, with some of its more recent projects. is being built for Amazon.
In March last year, Hillwood and NASCAR announced an exclusive agreement to improve the surplus land in the motorsport company’s real estate portfolio, with an initial focus on 13 markets across the country. The companies said at the time that the goal of developing the unused land was to create jobs and increase prosperity in communities where NASCAR operates.
Romanello praised the efforts of all parties involved to bring the Richmond Raceway project together.
“This project is about jobs for Henrico families. We are proud to be No. 2 in Virginia for total jobs, and as we come out of the pandemic it has never been more important for the people of Henrico and Central Virginia to have good job opportunities, ” said Romanello. “It’s partnerships like this that will help us grow our economy.”
Amazon vans filled a gathering place across from the fulfillment center location on Wednesday.
Amazon is eligible for benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program and the Virginia Enterprise Zone Program. Support for employee training will be provided through the Virginia Jobs Investment Program.
The facility will be added to two other fulfillment centers Amazon operates in the region: at 1901 Meadowville Technology Parkway in Chesterfield County and at 5000 Commerce Way in Dinwiddie County. Together, these centers employ more than 1,100 people and each have an area of approximately 1 million square meters.
Other Amazon facilities in the region include a distribution center at 4949 Commerce Road in Richmond. The company also leases two 320,000 square foot buildings, in Chesterfield at 1601 Bellwood Road and in Hanover in the Exchange in Northlake Industrial Park. Both buildings were built by developer Devon USA.
Amazon previously had a presence near the racetrack, in an industrial park at 4101 Carolina Ave., where Amazon third-party contractor Bear Down Logistics shut down after Amazon cut ties with the company. Henrico-based Allegiance Logistics is currently coordinating Amazon’s deliveries to the race track, with a truck depot located across the street from the fulfillment center’s planned location.
This is a story in progress. Stay tuned to BizSense for updates.