Easy Cash4ads»
Lakeland officials paved the way Monday for Amazon to increase its air cargo operations at the city-owned airport.
Seattle-based Amazon (Nasdaq: AMZN) will expand its footprint at the Lakeland Linder International Airport by 10.6 to 57.6 acres, or a 22.6% increase. That pales in comparison to Amazon’s original plan from May 2021 to more than double its footprint.
“During the negotiations, originally Amazon had planned to expand all the way out — actually dividing up this parcel and blocking the airport from future development up here,” airport Assistant Director Adam Lunn said at a city commission meeting. “Working together, Amazon agreed to pull it back.”
The e-commerce giant opened its $100 million, 300,000-square-foot air cargo hub at Lakeland Linder in 2020.
Amazon will pay about $90,000 annually for the additional 10.6 acres, increasing its base ground rent to just over $500,000. The total fiscal boon will be even higher; the airport expects to receive almost $600,000 annually from just the new acreage, as Amazon will pay hundreds of thousands for landing and fuel fees for each B767 plane it brings in.
Even with the expansion, there is more land to be had at Lakeland Linder, said Mayor Bill Mutz.
“It’s important to remember that we also want to develop the northeast corner for cargo or a maintenance repair facility,” Mutz said at the meeting.
As part of its Lakeland expansion, Amazon will add a new truck bay and two parking positions for its airplanes, according to a presentation from Lunn.
A renovated taxiway will also be improved at the cost of $1.7 million. Amazon agreed to pay for it upfront, with the airport reimbursing the company $1.2 million in interest-free payments across the next 15 years using landing fees generated by Amazon.
Lakeland commissioners also agreed to give Amazon right-of-refusal over all or some of the land it spurned with this expansion. The deal will be good for the next five years, before Amazon gets the paid right to expand at the cost of 5 cents per square foot.
Nationwide, Amazon has reshaped the logistics industry — affecting both large and small business owners. The company has tight control over the movements of its goods, with expansive long-haul trucking and air freight capabilities. It also charters its own ships and ships some other companies’ goods.
It moved its local air cargo operations from Tampa International Airport to Lakeland Linder for the opportunity to operate on more land. The facility is one of the largest of its kind in the Southeast.
“We are excited to expand our Amazon Air operation at the Lakeland Airport to ensure we have the capacity to continue to fulfill our promise to our customers in Florida and the region,” Amazon spokesperson Owen Torres said.
© 2022 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated January 1, 2021) and Privacy Policy and Cookie Statement (updated July 1, 2022). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.