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Amazon is abandoning plans for its Round Rock medium indefinitely.
The $250 million allocation would have created a large distribution center on a 193-acre parcel of Robinson Ranch, a 7,000-acre parcel where corporations like Apple and Microsoft have built corporate campuses. The temporary cancellation of the progression marks the first major setback in the region’s commercial real estate market, which has been a favorite of investors since the Covid-19 outbreak and e-commerce, according to the Austin Business Journal.
“Amazon has suspended the assignment indefinitely and may not advance the site in the future,” Brad Wiseman, director of plans and progress for the City of Round Rock, said in a May 26 email to the publication.
In an official statement, the company said it would “suspend the authorization procedure similar to that of the site we own at Round Rock,” bringing out the excess capacity of its national distribution and transmission network. Earlier this month, seattle-based e-commerce company the company recorded its worst monetary quarter in seven years, suffering a quarterly monetary loss of $3. 8 billion.
The resolution is also unexpected, as the company was on track to become the region’s largest employer, with 11,000 workers in the Austin domain in the first quarter of 2021. The company’s presence was only Dell Technologies (13,000) and H-E-B (19,000). concentrated in the region for decades.
The existing vacant lot at 2801 County Road 172 was purchased through an Amazon subsidiary, ABJ reported last November. The lot is located at the corner of East McNeil Road and State Highway 45, near La Frontera Mall. Authorities submitted documents to annex and rezone the land, however, the article had not reached the city for a public hearing since.
Although Amazon still owns the land, plans for long-term projects are unknown. “We will reconnect with the city and the neighboring network when the timeline for this is more defined,” the company said.
[ABJ] — Maddy Sperling
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