UPDATE: Is Amazon cutting back on their Sioux Falls operations?

UPDATE: All Amazon is saying is they have not set a timeline yet.

With the new facility pretty much completed in Sioux Falls many have been wondering when the new warehouse will be operational. A rumor has been going around for about a week that they are delaying the opening, and not by just a couple of months, but years.

I don’t have all the details but Amazon reps have said if the media reaches out they will provide a statement about when they plan to start SF operations.

Another part of the rumor is the already leased warehouse that has been operating in Sioux Falls will NOT close and continue to be operational.

Hey, if you don’t have to pay any local taxes and a significant property tax break due to the Foundation Park TIF does it really matter if the building sits empty for a couple more years?

I know that several people in the media are aware of the rumor and hopefully we will hear something concrete next week.

If it is true, I’m sure many local businesses will be relieved to hear they won’t have to compete in the job market with Amazon, at least for now.



19 comments ↓

#1 Blue Collar on 06.11.22 at 9:40 am

Currently they are installing their infrastructure inside the building which is a lot of automation software. Normally this build out take 9 months to get fully up and working, but because if chip shortages the devices needed are slowly being shipped in.

#2 l3wis on 06.11.22 at 9:45 am

I have heard it has to do with getting in the equipment like robotics and conveyors, as you have stated.

#3 D@ily Spin on 06.11.22 at 10:01 am

Amazon stock has taken hard hits lately. Reason: To much expansion. There’s market growth but not enough to justify their vigorous plans. For the moment, they’ll probably slow plant operations for here. There will be some effect to the local economy.

The real estate boom is coming to an end. Mortgage interest rates have nearly doubled in just the last 3 months. Likely, homes will stop outlandish cost and appreciation. Apartments should become available and affordable. They were financed at old rates with vigorous Amazon expectations.

End result: Except for general inflation, Sioux Falls can start to get back to normal. That is, unless, you’re an Amazon employee.

#4 D@ily Spin on 06.11.22 at 10:12 am

The Jesus Plow idol must be melted down before there’s another Derecho. Otherwise, Amazon will be mad when it comes back with commandments from Wall Street. Did you know the Hindu religion has 330,000 gods?

#5 Fear & Loathing in Sioux Falls on 06.11.22 at 2:16 pm

I heard brick and mortar are back. Currently, I am buying-up brick futures. The third pig was the smartest.

#6 Further Fear & Loathing on 06.11.22 at 2:19 pm

History will show the pandemic to have been our last great chance to stop artificial intelligence from taking us over and destroying us. But since the robots will be in charge of history in the future – because the victors always write the history – it will never be told.

#7 Fearing the Fuhrer & More on 06.11.22 at 2:20 pm

There’s a reason why Amazon built near the big white FEMA relocation building. #JustSaying

#8 "Woodstock" on 06.11.22 at 2:23 pm

“Say, wasn’t it Shakespeare who once wrote: ‘…. The first thing we do, let’s kill all the robots’ ? …. “

#9 Sick of Fearing on 06.11.22 at 2:25 pm

If you ordered a robot from Amazon that was shipped to you with the help of a worker robot, could that worker robot then be arrested for trafficking?

#10 Marie on 06.12.22 at 8:23 am

TIF’s and more –let’s not forget the 2021 Amazon worker’s subsidy for Amazon’s CEO compensation:

Amazon worker 2021 median pay–$32,855.

Amazon CEO 2021 compensation–$212,701,169–
6,474 times median worker compensation!

Institute for Policy Studies
Executive Excess 2022 Report
https://ips-dc.org/report-executive-excess-2022/

#11 "Woodstock" on 06.12.22 at 2:55 pm

“$212,701,169′?”…. “Well, his eventual golden parachute has got to be as big as a Sanford one then …. “

#12 The Guy From Guernsey on 06.14.22 at 8:36 am

… meanwhile the fulfillment center in Fargo, announced at nearly the same time AND attracted to that location without tax subsidy to the previous land owner, nor to Amazon, has been open and operational since mid Sept 2021.

To Backslapper Bob Mundt, a member of the Sioux Falls Society of Mutual Self-Congratulations, this matters little. The state and local tax incentives are banked, as is the grant of $1.9 million of federal tax dollars from the CARES Act Recovery Assistance Grant provided by the U.S. Department of Commerce Economic Development Administration.

free market capitalism LOL!

#13 The Guy From Guernsey on 06.14.22 at 8:46 am

On the topic of “blockbuster” economic development deals wrangled with free money by our local, regional and state economic development wizards – when can I expect to get some of that tr? Shrimp from the harbors in Madison? Need some shrimp on the barbie this summer.

Gullible rubes = Local, regional and state economic development personnel in South Dakota.

#14 D@ily Spin on 06.14.22 at 9:00 am

212 million!!! Must be pesos.

#15 Fear Not! on 06.14.22 at 9:45 am

No Amazon, but at least we still have our trains downtown.

#16 Amazon's Official Announcement on 06.14.22 at 12:54 pm

Today’s AL:

https://www.argusleader.com/story/news/business-journal/2022/06/14/amazon-delayed-opening-sioux-falls-fulfillment-center-jobs-warehouse/7613421001/

#17 Dr. Derecho & Mr. Hyde on 06.14.22 at 8:41 pm

If Amazon has everything and sells everything, then shouldn’t they have all they need to open a new facility?
The facade has finally been cracked. These Amazon trucks you see in your neighborhood more frequently than US Mail trucks are actually making purchases from either a Walmart or a Target, or wherever, then reselling them to you with door delivery. #PrimeMiddleManIfYouAskMe

#18 Ask Not! on 06.14.22 at 8:47 pm

If they can’t open-up because there are not enough robots, then the robots are already controlling us.

#19 scott on 06.15.22 at 8:05 pm

if we give them another tif, can they open sooner?