A proposal that could bring a new Amazon distribution facility to a vacant 24-acre tract in Spanish Fort Town Center is drawing attention as the latest sign of a fast-growing logistics and distribution sector taking root across Baldwin County.
The project, which would represent an estimated $45 million capital investment, is still in its early stages. Spanish Fort officials say the proposed site must first be rezoned before negotiations with the company can move forward, and details about the size and scope of the facility remain limited while discussions continue.
Lee Lawson, president and CEO of the Baldwin County Economic Development Alliance, said he is bound by a nondisclosure agreement regarding specifics of the Spanish Fort project, but described the type of facility as one that would serve as a “last line of delivery” operation and would likely be “among the smallest types of facilities” the company builds.
If it moves forward, the Spanish Fort project would add to a string of major distribution and logistics investments that have reshaped the local economy over the past several years. Amazon already operates a 362,000-square-foot sortation center in Mobile, which opened in 2017 and reportedly supports 360 year-round jobs, with employment climbing to as many as 1,000 workers during the holiday shopping season.
The following year, Walmart opened a 2.5 million-square-foot distribution center just across Interstate 10, a $135 million project that brought 550 full-time jobs to the area. More recently, Baldwin County officials announced that grocery chain ALDI will build a regional headquarters in Loxley, a $100 million investment expected to create as many as 200 white- and blue-collar jobs when it opens later this year. That facility will join the ACE Hardware distribution center in Loxley, which has operated since 2000 following a $35 million investment and currently supports 300 jobs and a $6 million payroll.
State officials consider distribution and logistics a foundational industry, one the Alabama Department of Commerce says provides core competencies used across a wide range of other business sectors. Companies including Home Depot, Dollar General, CVS Pharmacy, Target and Sysco have all built distribution centers in Alabama in recent years, and in 2020 the state added Lowe’s and FedEx to that growing list, according to Secretary of Commerce Greg Canfield.
“Altogether, these projects involve an estimated $500 million in new capital investment and the creation of at least 1,700 jobs in Alabama,” Canfield said, crediting the state’s existing infrastructure and geographic position for the continued interest from major companies looking to move goods closer to their customers while lowering costs.
Canfield pointed specifically to the Port of Mobile as a critical piece of that infrastructure network for Mobile and Baldwin counties. “Along with a robust rail and interstate highway system, the port is a critical advantage for the Alabama economic development team as we work to attract new distribution centers — and the jobs that come with them — to the state,” he said.
Lawson said the region’s geography continues to be one of its biggest selling points to logistics companies evaluating where to locate. “With our location along Interstate 10 and proximity to the port — we’re right in the center of the corridor between Pensacola and Mobile, Tallahassee and New Orleans, and Jacksonville and Houston — the amount of due diligence these companies do on real estate, it checks a lot of their boxes,” he said.
Tax incentives are not always the deciding factor in landing a new distribution project, according to Lawson, who said population growth and the strength of the local labor pool often carry just as much weight in a company’s decision. “We’ve seen projects look at us over the past several years and we’re seeing a lot more activity in that distribution and logistics space, and much of it is fueled by growth, location and the changing dynamic in the industry itself with automation and e-commerce,” he said. “Some tax abatements were done for ALDI, but we’ve also had projects in that space that haven’t sought them. Each project is a little different, and we do an economic analysis on all of them, and if abatements are sought, the industrial development boards or elected officials approve those.”
In October, the Baldwin County Commission approved a 10-year abatement agreement with ALDI covering noneducational state and local property tax, including taxes tied to construction-related expenses as well as mortgage and recording documents. That deal was reported to be worth roughly $3 million. Beyond the direct job creation from any single project, Lawson said landing one major distribution center tends to draw additional interest from other companies in the sector. “Once you get a big name like that commit, the others take notice,” he said. “They are looking at the attractiveness for the service, the population base and existing clients.”
Lawson also noted that Mobile and Baldwin counties generally do not compete against one another for these projects, since both areas share similar advantages. Whether a distribution center ultimately lands on one side of Mobile Bay or the other, he said, “both are seen as wins to the entire region.”
As for how much more growth the area’s infrastructure and workforce can absorb, Lawson said that question remains open. “As far as a cap goes, we’re doing impact analysis economically and on physical and human infrastructure,” he said. “There may be a ceiling, but it depends on job absorption and the availability of the existing workforce, and we haven’t gotten there yet.”