Amazon 'last mile' delivery center falls far behind schedule in Bakersfield

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Jul. 7—Work appears to have stalled on an Amazon "last mile" distribution center at the former Kmart shopping center on Wilson Road.

Nine months after the $20 million project was supposed to start operation, the Seattle-based e-commerce giant still has not requested a city inspection that could lead to a certificate of occupancy allowing distribution work there to begin.

"The city is currently waiting for Amazon to call for a final inspection," city spokesman Joe Conroy said by email Wednesday. He added that the city stands ready to assist in any way necessary to complete the certification process.

There was no sign of activity Thursday morning at the fenced-off property, located just west of Highway 99 on a lot that in late 2020 contained two vacant "big box" retailers and a series of small businesses that were cleared to make room for Amazon. The building's exterior appears to be complete, with Amazon signage in place. No vehicles were visible on the lot.

Amazon did not respond to a request for comment. Neither did an Orange County developer that was working with the company on the project. An Orange County spokeswoman for the project also did not return messages asking about progress on the distribution center.

Two hundred employees were expected to work at the operation, touted by the city in April 2021 as a boost to the local economy and a sign of Bakersfield's business-friendly approach to development. Amazon operates two much larger distribution centers in Oildale and Shafter.

Paperwork filed with the city said the Wilson Road facility would receive and sort six truckloads of consumer goods per day. Products would then be loaded onto 20 delivery vans and shipped out in staggered departure times to avoid causing congestion.

In April, Amazon reported first-quarter earnings showing the company's slowest sales growth in about two decades. Its operating expenses were up even as its online revenues remained stagnant for six months.

The last-mile facility was one of many large investments Amazon has made as part of a drive to cut delivery times for customers who expect to receive products within days, if not hours, of placing an order online.

Commercial property broker Scott Underhill with ASU Commercial in Bakersfield said the Wilson Road facility has been part of Amazon's drive to improve the timing, cost and efficiency of its operations.

"(In) logistics, the last mile is the most expensive part of the delivery," Underhill said. "So, that is why they're building these satellites."