Amazon’s plans to open a massive warehouse in New Stanton may be just the first step in a wave of economic development, Westmoreland officials said Wednesday.

Amazon confirmed Tuesday it will occupy a 1 million-square foot warehouse in what has become an industrial hub for the county near the intersection of the Pennsylvania Turnpike and Interstate 70.

“This proves that corridor is ready for major companies to come in here. We’re hopeful Amazon is just the beginning and we want to keep this trend moving along,” county Commissioner Sean Kertes said.

County leaders have for months speculated that Amazon was the likely tenant for the warehouse that has been erected above Glenn Fox Road in the tiny borough, which also serves as headquarters for a United Parcel Service distribution center. Once completed, the warehouse could host up to 600 jobs, officials said.

On its website, the electronic retailer says most jobs carry starting wages of at least $19 an hour.

The nearly 142-acre warehouse site was purchased last year by SunCap Properties for $10.57 million.

County tax records indicate the land owner currently pays just more than $7,100 in local property taxes on what is considered to be vacant ground.

According to a building permit on file with the Westmoreland County Tax Assessment Office, the warehouse is expected to be valued at $121 million when completed.

Because of tax abatements approved in 2021 by the county, New Stanton Borough and the Hempfield Area School Board, the property is not expected to be a major revenue source for local governments for at least five years. The property is part of a Local Economic Revitalization Tax Assistant zone, which exempts developers from paying property taxes on land improvements, Westmoreland County Chief Tax Assessor Camdon Porterfield said.

Improvements, such as construction of a warehouse, won’t be taxed for five years.

That tax could be considerable when the LERTA expires.

The property is listed with an assessment of $64,460, based on 1972 construction costs, which is the formula used by Westmoreland County determine a taxing value. That assessment translates to current market value of more than $644,000, Porterfield said.

• After months of speculation, Amazon says it will use New Stanton warehouse • From 2022: Earthmoving begins for 1-million-square-foot warehouse in New Stanton • From 2022: Amazon drops plans for Churchill warehouse • From 2018: Pittsburgh offered Amazon its best development sites - for free

“When the warehouse is complete and open, we’ll reassess the property. Until then, it is just the land we assess. We’re waiting, and our assessors keep asking every day, ‘Is it done yet?’ ” Porterfield said.

County officials say the tax abatement program as a useful tool to promote economic development.

“This is just further evidence and verification that all the improvements we put into place are working, and now we’re seeing the results of that investment,” said Jason Rigone, executive director of the Westmoreland County Economic Development Corp.

State Rep. Eric Nelson, R-Hempfield, praised the Amazon project as a potential precursor to more substantial economic development in the county.

“We’ve been excited about this project for some time. This is an opportunity for not just jobs but for growth in Westmoreland County. It’s great to have this type of warehouse and we welcome more of them,” said Nelson, whose district includes New Stanton.

County Commissioner Doug Chew said the area is ripe for development.

“All of the investments that we have made in the last four years has laid the groundwork for their arrival. Westmoreland is a great place to raise a family and grow a robust business. Amazon has a proven track record of connecting people to small businesses that provide many of the goods found on their website,” Chew said.

County Commissioner Ted Kopas said he wants to see Amazon work with borough and county officials to ensure the project causes no disruption to local residents.

“Six hundred jobs in any capacity is a big deal, and I’m looking forward to learning the details,” Kopas said.

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