'It will not be a data center': Sheboygan Common Council approves deal with Amazon for distribution facility, tries to alleviate data center concerns
SHEBOYGAN, Wis. (CBS 58) -- In a 7-3 vote Monday night, Jan. 19, the Sheboygan Common Council voted to approve a land sale to Amazon, which will build a distribution facility. The vote came despite some community concerns.
The council approved the $2 million land sale and a zoning change, but some people worry Amazon could one day convert the building into a data center.
But a representative for Amazon was emphatic: the building cannot and will not become a data center.
He and several alders touted the economic benefits of the facility and tried to allay any fears.
Community members like Peter Jacobs opposed the deal. Jacobs told the council, “The way these decisions on the ordinance and the contract have been rushed feels sinister.”
With signs and strength in numbers, several people spoke out against the plan to build a distribution facility in a nearby business park.
Their chief concern is the agreement does not prevent the facility from becoming a data center one day.
Lisa Salgado said, “Verbal assurances are not enough,” as most in the gathered crowd burst into applause.
But Amazon representative Jason Vangalis was clear: “This is not a data center, it has never been a data center, it will not be a data center. It has always been a last mile delivery station.”
A Sheboygan native, Vangalis reiterated the building is only for distribution. “Our general contractor is obligated to build a delivery station,” he said in a presentation to the council. “There is no room for us to change the schedule and swap out a different building.”
Vangalis said the 200,000-square-foot facility would create at least 150 permanent jobs and 450 indirect jobs, most of them for delivery drivers.
Amazon will also pay $500,000 needed for road alterations.
While Amazon’s budget for the project has not yet been finalized, Vangalis estimated it would cost between $30 million and $50 million to build.
Alder Dean Dekker said that amounts to between $450,000 and $770,000 that would be added to the tax base.
But people were also concerned with how quickly things are moving.
Sheboygan County Supervisor Rebecca Clarke spoke against the deal during the public forum portion of the meeting. She said, “I know some of you feel pressure to get this deal done. And that is a problem.”
Alder Grazia Perrella asked Vangalis if the city could delay approval to rework the agreement with clearer protections.
And while Vangalis would not say that would be a dealbreaker, he said, “I can say it would certainly put out the timeline to a point where we feel uncomfortable with the launch date.”
In the end, the Common Council voted to approve.
Alderman John Belanger explained he spoke with officials in Kenosha about the impacts of two much larger Amazon facilities in their community. “They could say nothing but positive things as to the corporate citizen,” Belanger said.
With approval now in hand, Amazon plans to break ground this summer. Vangalis said they want to be up and running by summer 2027 so the facility is ready for Amazon’s peak fall shopping season.