Amazon.com plans to build a major distribution center in Tracy's northeast industrial sector.
Tracy city councilman Steve Abercrombie says an agreement is expected soon and construction could start by early next year.
Abercrombie says the center might create as many as 400 new jobs to start.
ABERCROMBIE: "Very exciting, great opportunity for Tracy. In these economic times you're always looking to do something to benefit your city and I think we hit a home run with this one."
Abercrombie says more companies may follow Amazon's lead.
ABERCROMBIE: "Since this deal has gone down, we've had other companies contact us and have shown some interest in coming here also because of that so there definitely a domino effect."
Abercrombie adds that Tracy would also benefit from the sales tax revenue which could range from between one and two million dollars a year if the deal goes through.