Question: In 2017, Amazon announced its intention to build its second headquarters somewhere in North America. Amazon expected to invest over $5 billion in construction and
In 2017, Amazon announced its intention to build its second headquarters somewhere in North America. Amazon expected to invest over $5 billion in construction and grow this second headquarters to include as many as 50,000 high-paying jobsit will be a full equal to the current campus in Seattle. In addition to Amazons direct hiring and investment, construction and ongoing operation of Amazon HQ2 (second headquarters) is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community. Amazon estimates its investments in Seattle from 2010 to 2016 resulted in an additional $38 billion to the citys economyevery dollar invested by Amazon in Seattle generated an additional $1.40 for the citys economy overall.
Amazon prepared a request for proposal (RFP) that outlined the selection process for the chosen city. Within the RFP, they said that in choosing the location for HQ2, Amazon has a preference for:
- Metropolitan areas with more than one million people
- A stable and business-friendly environment
- Urban or suburban locations with the potential to attract and retain strong technical talent
- Communities that think big and creatively when considering locations and real estate options HQ2 could be, but does not have to be:
- An urban or downtown campus
- A similar layout to Amazons Seattle campus
- A development-prepped site.
- We want to encourage states/provinces and communities to think creatively for viable real estate options, while not negatively affecting our preferred timeline.
Amazon also spelled out the following KEY PREFERENCES AND DECISION DRIVERS (not in a ranking order):
Site/buildingAs described herein, finding suitable buildings/sites is of paramount importance. Amazon HQ2 is a transformational project, and we must ensure we have the best real estate options available whether this be a redevelopment opportunity, a partnership with the state, province, local government, or new buildings. All options are under consideration.
Capital and operating costsA stable and business-friendly environment and tax structure will be high-priority considerations for the project. Incentives offered by the state/province and local communities to offset initial capital outlay and ongoing operational costs will be significant factors in the decision-making process.
IncentivesIdentify incentive programs available for the project at the state/province and local levels. Outline the type of incentive (i.e., land, site preparation, tax credits/exemptions, relocation grants, workforce grants, utility incentives/grants, permitting, and fee reductions) and the amount. The initial cost and ongoing cost of doing business are critical decision drivers.
Labor forceThe project includes significant employment requirements at the threshold compensation levels described herein and with corresponding educational attainment of the available workforce. The project must be sufficiently close to a significant population center, such that it can fill the 50,000 estimated jobs that will be required over multiple years. A highly educated labor pool is critical and a strong university system is required.
LogisticsPersonnel travel and logistics needs, both from population centers to the project site, as well as between company facilities, are critically important. As such, travel time to a major highway corridor and arterial roadway capacity potential are key factors. The highway corridors must provide direct access to significant population centers with eligible employment pools. Travel time to an international airport with daily direct flights to Seattle, New York, San Francisco/Bay Area, and Washington, DC, is also an important consideration.
Time to operationsThe project requires an expeditious timetable for the location decision and the commencement of construction. Given this, sites with the requisite access, utility infrastructure, and zoning are critical. Please outline the permitting process and estimated timetable to initiate Phase I of our operations.
Cultural community fitThe project requires a compatible cultural and community environment for its long-term success. This includes the presence and support of a diverse population, excellent institutions of higher education, local government structure, and elected officials eager and willing to work with the company, among other attributes. A stable and consistent business climate is important to Amazon. Please demonstrate characteristics of this in your response. We encourage testimonials from other large companies.
Community/quality of lifeThe project requires a significant number of employees. We want to invest in a community where our employees will enjoy living, recreational opportunities, educational opportunities, and an overall high quality of life. Tell us what is unique about your community.
The process took over a year to complete. Over 100 cities responded to the RFP and the list was then further narrowed down to 20 finalist candidates. Ultimately in December of 2018, Amazon announced that two cities would become the future home of its second headquarters site. The massive expansion worth over $5 Billion in investment and 50,000 jobs were awarded to Crystal City in Northern Virginia and Long Island City in Queens, New York. In winning, these cities offered massive tax breaks and promises to build public infrastructure. Not everyone is happy with this decision and there will certainly be winners and losers, but it will be interesting to see how this plays out over the next few years.
Q1: Why do you think Amazon selected this city out of 100 plus candidates?
Q2: What other factors do you think Amazon should have or could have considered?
Q3: NKU (my university) is located in the greater Cincinnati area. What could be some of the reasons that Cincinnati was not chosen as a finalist city by Amazon?
longer answers please
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