View Full Version : Big employer taking hard look at OKC



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Pete
11-17-2013, 09:18 PM
One to two years ago, a large national company considered OKC for a massive distribution center but then pulled back.

However, they have been back several times over the last few months and are looking hard at West OKC (I-40 / Council, approximately) for a 2 million square foot distribution center.

Nobody knows the other cities in contention but OKC is in the hunt and they may be making a decision by the end of the year.

Would be a ton of jobs and a very prestigious win for PR purposes.


This is all VERY hush-hush which is why I am not naming the company. In fact, this company is using a consulting firm a code name.

Hopefully we'll be hearing more soon.

Teo9969
11-17-2013, 09:27 PM
I'd kill for an Amazon distribution center.

Pete
11-17-2013, 09:35 PM
I'd kill for an Amazon distribution center.

Why?

Teo9969
11-17-2013, 09:45 PM
Why?

Faster ship times on many items and I bet it would be a very successful sitting on 3 interstates, plus it would be a nice name company to have in OKC.

ljbab728
11-17-2013, 09:46 PM
One to two years ago, a large national company considered OKC for a massive distribution center but then pulled back.

However, they have been back several times over the last few months and are looking hard at West OKC (I-40 / Council, approximately) for a 2 million square foot distribution center.

Nobody knows the other cities in contention but OKC is in the hunt and they may be making a decision by the end of the year.

Would be a ton of jobs and a very prestigious win for PR purposes.


This is all VERY hush-hush which is why I am not naming the company. In fact, this company is using a consulting firm and using a code name.

Hopefully we'll be hearing more soon.
That is very interesting, Pete. There is certainly plenty of land that would easily support that kind of development in that area. It would be nice if some day something like could move into the skeleton from the cancelled Corning plant.

Plutonic Panda
11-17-2013, 10:01 PM
Ikea, Tiger Direct, or perhaps Target? Any of those would be awesome. Yes, an Amazon would be sweet!

zookeeper
11-17-2013, 10:06 PM
Hmmmmm. The Mystery Distro Center. It doesn't have the ring of "Mystery Tower" but sounds like a great thing on the horizon!

Zuplar
11-18-2013, 12:12 AM
Interesting. Might help to get council redone like it was supposed to one of these days.

Jeepnokc
11-18-2013, 06:29 AM
Ikea, Tiger Direct, or perhaps Target? Any of those would be awesome. Yes, an Amazon would be sweet!

I don't normally buy through amazon but isn't it one of the sites that Oklahomans do not get charged tax? If they put in a distribution center, they will have a state presence and will be required to collect tax from OK buyers. Not arguing good or bad, just pointing out.

rte66man
11-18-2013, 06:55 AM
I'd kill for an Amazon distribution center.

As pointed out earlier, having an Amazon distribution center here means they would have to collect sales tax. I would rather have something like a Target or Walmart center.

Bellaboo
11-18-2013, 07:11 AM
I'd kill for an Amazon distribution center.

I seriously doubt it'd be Amazon. They just completed a distribution center at the Alliance airport industrial park just north of Ft Worth.

lasomeday
11-18-2013, 07:12 AM
One to two years ago, a large national company considered OKC for a massive distribution center but then pulled back.

However, they have been back several times over the last few months and are looking hard at West OKC (I-40 / Council, approximately) for a 2 million square foot distribution center.

Nobody knows the other cities in contention but OKC is in the hunt and they may be making a decision by the end of the year.

Would be a ton of jobs and a very prestigious win for PR purposes.


This is all VERY hush-hush which is why I am not naming the company. In fact, this company is using a consulting firm and using a code name.

Hopefully we'll be hearing more soon.

Did they choose to build somewhere else or did they just delay the building of the distribution center?

catch22
11-18-2013, 07:13 AM
Interesting.... Hope we score this.

CuatrodeMayo
11-18-2013, 07:22 AM
As pointed out earlier, having an Amazon distribution center here means they would have to collect sales tax.

It shouldn't matter because you pay a Use Tax on the stuff you buy anyways.

...right?

venture
11-18-2013, 08:04 AM
Amazon will be eventually collecting sales tax anyway. They just have to get it worked out internally. They will claim nexus based on where you, the customer are and pay accordingly.

All the more reason to have a Prime account and get free 2 day shipping on everything. :)

onthestrip
11-18-2013, 09:05 AM
I'd kill for an Amazon distribution center.

Yes, that would be great for the state so that Amazon would then be required to collect the sales tax that people should be paying for anyways. Congress is working on the Marketplace Fairness Act that would require internet retailers to collect it regardless of state presence. This is all a good thing as it gives needed revenue to the state (you are supposed to pay this sales tax anyways so quit crying about a tax hike) and it better protects local retailers that have people shop and try things out in their stores but then go buy online.


Interesting. Might help to get council redone like it was supposed to one of these days.

S. Council might be the worst stretch of road in OKC. Intersections south of I40 need to be redone in with concrete and not asphalt.

Zuplar
11-18-2013, 11:28 AM
S. Council might be the worst stretch of road in OKC. Intersections south of I40 need to be redone in with concrete and not asphalt.

Yeah I don't think it was planned to have that much semi-truck traffic when the road was built. This has really torn up the road. I know that there was a Bond a few years ago and this road was on the list, so I just keep waiting for it to get done, especially with all the stuff that keeps going in over there.

catch22
11-18-2013, 11:49 AM
I'm really curious as to who this could be.

So many companies have huge distribution centers in Ft Worth... Who doesn't have a FTW center who would be a positive PR boost?

HangryHippo
11-18-2013, 12:35 PM
I'm really curious as to who this could be.

So many companies have huge distribution centers in Ft Worth... Who doesn't have a FTW center who would be a positive PR boost?

Could it be Target? Would that count as a PR boost?

shawnw
11-18-2013, 03:55 PM
Could it have anything at all to do with this effort as a whole?

Google Delivers Giant Packs of Toilet Paper, Just in Time for the Holidays | Wired Business | Wired.com (http://www.wired.com/business/2013/11/google-delivers-costco/)

Oh GAWD the Smell!
11-18-2013, 04:21 PM
Yes, that would be great for the state so that Amazon would then be required to collect the sales tax that people should be paying for anyways. Congress is working on the Marketplace Fairness Act that would require internet retailers to collect it regardless of state presence. This is all a good thing as it gives needed revenue to the state (you are supposed to pay this sales tax anyways so quit crying about a tax hike) and it better protects local retailers that have people shop and try things out in their stores but then go buy online.


After fighting that whole "internet tax for all things!!!" for YEARS, Amazon has recently switched their tune and is now pushing for it.

Why?

Because they're looking to start SAME DAY delivery of hundreds of thousands of items. This will require distribution hubs all over the place, and the tax thing was somehow a byproduct of all that...There were quite a few articles on this topic a few months back.

Rover
11-18-2013, 04:31 PM
There are a number of people in the city who should know who believe this deal is done.

LakeEffect
11-19-2013, 07:14 AM
There are a number of people in the city who should know who believe this deal is done.

Done as in closed and coming to OKC, or done and going somewhere else?

CaptDave
11-19-2013, 07:52 AM
Roy Williams just stated Terex will be hiring approximately 1500 people in his presentation to the City Council. This is after Terex exited the road paving business - not sure exactly what type of equipment manufacturing the new venture will entail. Oilfield related maybe?

Bellaboo
11-19-2013, 08:28 AM
Roy Williams just stated Terex will be hiring approximately 1500 people in his presentation to the City Council. This is after Terex exited the road paving business - not sure exactly what type of equipment manufacturing the new venture will entail. Oilfield related maybe?

I had read a while back it was cranes. They had 3 on display last month out in the front of their complex at I-40 and Morgan Rd.

lasomeday
11-19-2013, 08:33 AM
Roy Williams just stated Terex will be hiring approximately 1500 people in his presentation to the City Council. This is after Terex exited the road paving business - not sure exactly what type of equipment manufacturing the new venture will entail. Oilfield related maybe?

Yeah, this may be different than what Pete is talking about..... This is a manufacuring plant not distribution center?

Right Pete?

Same area almost.... just two miles off.

Pete
11-19-2013, 08:44 AM
Yes, Terex is a separate deal...

But just goes to show you the wide breadth of employment in OKC these days.

Lots of high paid positions: big, medium and small oil & gas companies, lots of light manufacturing to support that industry, biotech at the health sciences center, Boeing engineering jobs at/near Tinker, GE Global Research, tons of restaurant/bar/retail/service jobs, Hobby Lobby and other massive distribution centers, etc., etc.

Teo9969
11-19-2013, 08:55 AM
Yes, Terex is a separate deal...

But just goes to show you the wide breadth of employment in OKC these days.

Lots of high paid positions: big, medium and small oil & gas companies, lots of light manufacturing to support that industry, biotech at the health sciences center, Boeing engineering jobs at/near Tinker, GE Global Research, tons of restaurant/bar/retail/service jobs, Hobby Lobby and other massive distribution centers, etc., etc.

+ Financial-ish jobs (MF, AF, Insurance, Paycom, etc.)

bchris02
11-19-2013, 08:57 AM
OKC is fortunate to still have an expanding manufacturing sector. Many other cities have shifted almost entirely to a service-based economy as manufacturing jobs have left for other countries. This is a good score for OKC.

Pete
11-19-2013, 08:57 AM
+ Customer service centers (less glamorous but they employ thousands): Hertz, AAA, Farmers, Dell, etc.

Bellaboo
11-19-2013, 09:14 AM
I can speak for some of it here now, but Hertz is getting ready to hire additional employees at their Accounting Center at Quail Springs Business Park. This is a direct result of Dollar Thrifty, which a large portion is being consolidated here in OKC. I know that some that have been offered transfers from Tulsa will not relocate.

I know of one mid sized department being approved to hire 5 positions.

Zuplar
11-19-2013, 09:20 AM
OKC is fortunate to still have an expanding manufacturing sector. Many other cities have shifted almost entirely to a service-based economy as manufacturing jobs have left for other countries. This is a good score for OKC.

Some of the stuff I have read says that manufacturing is going to start moving back to the US and to expect those jobs to increase in the next 15 years.

Rover
11-19-2013, 09:25 AM
Done as in closed and coming to OKC, or done and going somewhere else?

Am told as done as in coming here. I don't think the people saying it are prone to gossip. Could be wrong, but there is lots of smoke.

catch22
11-19-2013, 10:00 AM
Must be related to the HVAC industry :p

Rover
11-19-2013, 10:09 AM
LOL. Not my HVAC buddies. But, from the same part of the city.

Pete
11-20-2013, 05:56 AM
After starting with 10 prospective cities, I've heard this is now down to OKC and one other.

Approximately 1.3 million square feet of distribution space, $90 million in investment, 800 full-time employees and 1,400 part-time. Potential for future growth.

We should have an answer before the end of the year.

CaptDave
11-20-2013, 06:34 AM
Sounds a lot like a Target DC.

catch22
11-20-2013, 08:26 AM
Sounds a lot like a Target DC.

Exactly what I was thinking.

Either way, sounds like this will be a good deal if OKC is selected.

DoctorTaco
11-20-2013, 08:39 AM
Sounds a lot like a Target DC.

Don't rule out Amazon. They are making a big play into next day/same day delivery, and are expanding like crazy to get it done.

Bellaboo
11-20-2013, 08:53 AM
Don't rule out Amazon. They are making a big play into next day/same day delivery, and are expanding like crazy to get it done.

Amazon just opened a new distribution center at Alliance Aiprort Industrial Park north of Ft Worth. Not sure if they'd need another within that proximity.

HangryHippo
11-20-2013, 09:28 AM
I just found this on NewsOK and it seems to be referencing the exact project Pete was talking about:

Owasso City Council approves $500,000 incentive for possible new employer | News OK (http://newsok.com/owasso-city-council-approves-500000-incentive-for-possible-new-employer/article/3906641)

Pete
11-20-2013, 09:30 AM
^

Hmm, what a coincidence. :wink:

catch22
11-20-2013, 09:30 AM
I just found this on NewsOK and it seems to be referencing the exact project Pete was talking about:

Owasso City Council approves $500,000 incentive for possible new employer | News OK (http://newsok.com/owasso-city-council-approves-500000-incentive-for-possible-new-employer/article/3906641)

I think OKC will be able to dish out some more money for this.

HangryHippo
11-20-2013, 09:31 AM
I think OKC will be able to dish out some more money for this.

You'd think. I guess we'll know soon enough. Hope we land it here in OKC.

catch22
11-20-2013, 09:33 AM
I think OKC is much better positioned anyway. I bet this company is using Owasso as a pawn to get more cash out of OKC.

OKC's interstate highway access is very lucrative for distribution centers.

Pete
11-20-2013, 09:34 AM
I doubt the Owasso money is the only incentive in that proposed deal.

Usually, incentives come for a variety of sources.

It's one of the reasons OKC formed the Alliance for Economic Devleopment... Not only to have an organized, professional group to go after such opportunities but to coordinate the various groups/agencies/governments involved and to coordinate incentive packages.

HangryHippo
11-20-2013, 09:38 AM
I doubt the Owasso money is the only incentive in that proposed deal.

Usually, incentives come for a variety of sources.

It's one of the reasons OKC formed the Alliance for Economic Devleopment... Not only to have an organized, professional group to go after such opportunities but to coordinate the various groups/agencies/governments involved and to coordinate incentive packages.

The article that I posted actually goes to a Tulsa World article that lays out the various groups that have also offered incentives to lure the employer. There were quite a few.

BDK
11-20-2013, 09:39 AM
Project Socrates??? Here's hoping Owasso takes the hemlock.

I'll show my self out now...

Pete
11-20-2013, 09:41 AM
From that TW article:


Levo said Owasso's offer isn't the largest proposed incentive. Bonuses to the company also have also been discussed by the state of Oklahoma, Oklahoma Career Tech, Oklahoma Employment Security Commission, Tulsa County, the Cherokee Nation, Tulsa Regional Chamber and Tulsa Tech, she said.

OKC has a whole host of incentive sources as well.

catch22
11-20-2013, 09:42 AM
Does Costco have distribution centers? Or do they just use their stores as warehouses? If they are trying to make a push into the central states, OKC would be a good center.

Pete
11-20-2013, 09:49 AM
Yes, this has been code named "Project Socrates" and the company has been using intermediaries to scout for sites and handle negotiations.

I know who the company is only because I've pieced together several different chunks of credible information but I won't say because I don't want to jeopardize the negotiations.


BTW, the GE Global Research Center is code named "Project Sandstorm".

The various public agencies often use code names because they have to report on progress but don't want to reveal confidential details. And obviously, some companies don't want their names mentioned until they are ready.

Pete
11-20-2013, 09:54 AM
The State of Oklahoma has recieved millions in the past for a "Project Socrates". Sounds like a revolving fund that is used for different types of incentives?

I don't know about that. I do know this same company looked at OKC some time ago then pulled back, so perhaps it's the same project?

Usually the project names are tied to a specific company/employer.

adaniel
11-20-2013, 10:03 AM
I'm frankly a bit surprised the city of Owasso leaked this.

Pete
11-20-2013, 10:09 AM
I'm frankly a bit surprised the city of Owasso leaked this.

I think they were to the point where they had to, as approving incentives requires public disclosure.

BTW, Project Socrates has been on the agendas of several public agencies in OKC for a while but I haven't mentioned it because only recently did it start to heat up and look like a real possibility.

bchris02
11-20-2013, 11:54 AM
If it's a distribution center, I don't see what advantage Tulsa would have over OKC period. OKC is at the intersection of three major interstates. Tulsa is only connected by one interstate (toll in all directions, not that it matters).

adaniel
11-20-2013, 11:58 AM
I think they were to the point where they had to, as approving incentives requires public disclosure.

BTW, Project Socrates has been on the agendas of several public agencies in OKC for a while but I haven't mentioned it because only recently did it start to heat up and look like a real possibility.

OK, makes sense.

No offense to Owasso as it is a very nice town but I like our chances. I have mixed opinions about incentive packages but OKC has a much more structured "closing fund". Whereas Owasso is having to borrow against its hotel/motel tax.

G.Walker
11-20-2013, 12:04 PM
Owasso is a nice and growing city, I think its the fastest growing suburb in the Tulsa metro behind Broken Arrow, you could compare Owasso to a city like Yukon. This development would have a larger economic impact in that area then it would OKC. I wouldn't be surprised if it is a Amazon DC, they have been building distribution centers like hotcakes here lately!

But Owasso even being considered as a finalists has me a little worried, it must be something there to have them considered, even over Tulsa or Broken Arrow for that matter.

Jake
11-20-2013, 01:12 PM
I have family in Owasso. The city is growing fast.

If they somehow land this thing, they'll grow even faster.

Pete
11-20-2013, 01:25 PM
Being near an airport is a plus for this type of facility.

catch22
11-20-2013, 01:49 PM
What kind of airport? Commercial airport with freight?

Would have to be Amazon or Target... Since they use a lot of next day air shipping.