Business

Amazon coming to Iowa City with last-mile delivery station

Amazon has scheduled an information session on its Delivery Service Partner program for Thursday in Iowa City. (Photo Illustration by Liz Martin/The Gazette)
Amazon has scheduled an information session on its Delivery Service Partner program for Thursday in Iowa City. (Photo Illustration by Liz Martin/The Gazette)

IOWA CITY — Amazon.com is working to develop a larger presence in the Corridor area, with a delivery facility soon to open in Iowa City.

The Seattle-based tech giant plans to lease the 346,062-square-foot former Procter & Gamble distribution center in southeast Iowa City at 2500 Heinz Road as a so-called last-mile delivery station, said Wendy Ford, Iowa City’s economic development coordinator.

Property listings with the Iowa City Area Development Group and ICR Iowa show the entire warehouse property for sale, priced at $104 million, with 194,173 square feet available for sublease.

Though Ford did not know precisely when the center’s operations would begin, she said an Amazon representative told the city the company would post jobs for the center about 30 days before its projected opening date.

Searches of jobs listings Monday yielded at least eight advertised Amazon positions in Iowa City, posted five days to two weeks ago, including for area and shift managers, a driver trainer and shift assistants.

Amazon also has scheduled an Iowa City information session on its Delivery Service Partner program 5:30 to 7:30 p.m. Thursday at the MERGE coworking space, 136 S. Dubuque St.

Launched in June 2018, the program grants small-package delivery businesses access to Amazon’s delivery technology, training and special deals on Amazon-branded vehicles and comprehensive insurance.

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For startup costs as low as $10,000, owners of businesses with 20 to 40 delivery vehicles and 40 to 100 employees could earn annual profits between $75,000 and $300,000, as part of Amazon’s “last-mile revolution,” company materials say.

Iowa City development staff have issued grading and flood plain development permits for what the documents describe as a “delivery and distribution facility.”

City staff as of Nov. 11 were reviewing a building permit for “interior tenant improvements” at the former Procter & Gamble center.

An Amazon representative did not immediately return a request Monday for more information.

As of November 2019, Amazon operates a known 158 delivery stations across the United States, with 12 confirmed future facilities planned, according to MWPVL International Inc., a global supply-chain and logistics consultant.

Elsewhere in Iowa, Amazon last year began operating a 18,000-square-foot delivery station in North Liberty, at 250th St. NW, the consultant found.

Amazon also has advertised delivery facility positions in Grimes, about a half-hour drive from Bondurant, where the company is believed to be building a $250 million, 780,000-square-foot fulfillment center under the code name Project Bluejay.

Comments: (319) 398-8366; thomas.friestad@thegazette.com

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