Less than two weeks after threatening to sue retail giant Amazon, a small town New Jersey mayor is backing off.

Earlier this month, Robbinsville Mayor Dave Fried went after the online retail giant for creating a 'dangerous' gridlock situation in his town, which is home to one of Amazon's largest, most modern distribution centers. He said the town's infrastructure could not handle the company's surging holiday business.

"The last thing we want to do is shut down a warehouse before Christmas — especially a warehouse of this magnitude," Fried said on CNBC's "Fast Money. "Public safety is our first priority."

Amazon, which reports it has about 4,000 regular, full-time associates and additional seasonal employees at the Robbinsville location, sent a letter to the mayor with a traffic mitigation plan which would stagger its employees' hours to ease congestion.

"We are proud to be a catalyst for economic growth, and we also pride ourselves in being good neighbors... We are working hard to implement this new holiday staffing plan as expeditiously as possible," wrote Amazon.

That plan, which was completed last Monday, appears to be working.

"We have seen quite a bit of improvement already. In fact both residents and some of the other tenants in the park have emailed me to say the difference has been very good and they are very happy. We have some more tweaking to do but I think we are on the road to recovery," Fried said in a statement to CNBC.

The mayor added he'll meeting with Amazon executives next Wednesday to discuss making some permanent infrastructure changes that should provide additional help.

This could be shaping up to be a historical holiday season for Amazon. Many Wall Street analysts believe it could be the strongest season ever for the retail giant. The stock is soaring more than 100-percent so far this year.