Amazon eyes Mendocino County as part of $4 billion rural-delivery push

Amazon is planning to spend $4 billion through the end of 2026 on rural delivery, and one of the sites being considered is in Mendocino County.

The Seattle-based e-commerce giant announced April 30 it would triple the number of delivery stations in small towns and cities, to total more than 200. The company opened the first one in 2020 and started ramping up the effort in 2023, claiming 50% faster delivery times to surrounding areas.

“At a time where many logistics providers are backing away from serving rural customers because of cost to serve, we are stepping up our investment to make their lives easier and better,” Udit Madan, senior vice president, Amazon Worldwide Operations.

Amazon opened such a station in Napa Valley in 2021, but backed away from plans for two similar facilities in Sonoma County the following year.

Rumors have been swirling that the Seattle-based retail giant has been considering a 56,280-square-foot warehouse project being pursued in a Ukiah business park. Mendocino County staff are reviewing the building permit application submitted Feb. 9 by Sacramento-based CDP Development Inc. for the 2.3-acre site at 1795 N. State St.

“Nothing submitted to our office indicates the intended tenant,” Julia Krog, director, Mendocino County Planning & Building Services, told the Journal in an email.

The project is in the 42-acre Friends of Liberty Industrial Park development started by Ross Liberty, owner of Factory Pipe, a Ukiah maker of exhaust systems for motorsports vehicles and watercraft. Ross declined to comment on the rumors.

Amazon told the Journal it is “always exploring” options for facilities from small to large across the country.

“Nothing is finalized in Ukiah, and we’ll share more if additional progress is made and we have something confirmed to announced,” the company said in a statement.

Amazon notes that the planned delivery stations tend to employ about 170 people. The new facilities are estimated to create around 100,000 jobs.

The company said delivery stations tend have 100,000 to 200,000 square feet in size, so the North State Street project, if chosen, would be on the smaller side.

The push toward last-mile delivery builds on existing company programs such as delivery service partners, Amazon Flex for on-demand drivers and hub delivery, which is run through existing businesses that already offer delivery to their customers.

Jeff Quackenbush covers wine, construction and real estate. Reach him at [email protected] or 707-521-4256.