Amazon Has Received 238 Proposals For The Company's Second Headquarters

Tyler Durden's picture

Just days after we reported that in the mad dash by virtually every American city to become Amazon's second headquarters, in which some such as New Jersey offered as much as $7 billion in state and city tax credits, today Amazon announced that that it has received 238 proposals from "cities and regions in 54 states, provinces, districts and territories around North America" who want to host the company's second headquarters, also known as HQ2.

As CNBC reports, bids for the new headquarters were due to Amazon on Thursday, Oct. 19. Cities big and small from across over America, from Newark to Boston and hundreds inbetween are trying to impress Amazon and the more than $5 billion it plans to spend on its second headquarters. One Georgia town's mayor went so far as promising he would rename the town "Amazon" if the company agreed to build there.

Amazon didn’t name any of the bidders or say when it would come up with a short list for its potential picks. Cities including New York, Boston, Atlanta, Nashville and Austin, Texas, have said they applied for the new corporate site, which is expected to generate 50,000 high-paying jobs over nearly 20 years.

As noted previously, Amazon had very specific requirements for cities that are interested in placing a bid: it wants a city with an established mass transit system, easy access to international airports, availability of software developers and other tech talent, cultural fit and the ability to move into a
phase-one site as early as 2019. Other items on its wish list: a metro
area of more than one million people and tax incentives.

Still, as the WSJ adds, it is unclear where Amazon might land. “I don’t think any one market fits everything. It’s going to be a balancing act of the various attributes,” says Dave Bragg, a managing director at Green Street Advisors, which conducts real-estate research.

Amazon has increased its workforce from a few thousand to more than 40,000 over the past decade. And it is still planning to add 2 million square feet and 6,000 people in the next 12 months.

 

But to keep growing, the company needs more space. Amazon has said that it will give its team leaders a choice between staying in Seattle, relocating or being based out of both. It has said that the average pay for the new jobs will be around $100,000, depending on where it locates.

Recently Bloomberg laid out some of the cities that have a good shot at hosting HQ2:

Atlanta: The southern U.S. city, home of Amazon delivery partner United Parcel Service Inc., is a major flight hub, and the greater metro area houses a dynamic population of almost 6 million, as well as the headquarters of major corporations like Coca-Cola Co. and Home Depot Inc. Still, Atlanta is a relatively suburban city, compared with the urban HQ1 of Seattle.

 

Boston:  Several Amazon executives have already advocated putting HQ2 in Boston, due to its proximity to Harvard University and Massachusetts Institute of Technology; an airport with nonstop flights to Seattle and Washington D.C.; and a lower cost of living than some other large urban areas. Amazon has ties with Boston already, having purchased local robot maker Kiva Systems Inc. for $775 million in 2012. The city also won General Electric Co.’s 2015 new headquarters bid, and has provided more than $100 million in grants, property tax relief and programs for GE – though the city has said it won’t negotiate any incentives with Amazon until Boston makes it past the first round of the selection process.

 

Chicago:  The Windy City ranks second in Anderson Economic Group’s analysis of 35 cities competing for the precious HQ2, focusing on its talent, diverse ecosystem and access to transportation in its bid. Just last month, Illinois Governor Bruce Rauner reauthorized the Economic Development for a Growing Economy (EDGE) tax-credit program, which provides special tax incentives to companies relocating to Illinois or expanding operations in the state when another state is actively competing, according to BNA. One issue? The city isn’t known as a center of technology.

 

Denver:  Denver has a busy international airport and is surrounded by a highly educated workforce. It’s also home to a surge of millennials looking for high-tech and energy jobs in Colorado, and boasts an outdoorsy lifestyle that’s an easy fit for Amazon’s quality-of-life considerations. Colorado has also chosen eight sites that meet Amazon’s requirements for HQ2. Still, other cities are offering larger tax breaks than Denver.

 

Detroit:  Detroit offers low rent and the potential for larger tax breaks, because the city and the state of Michigan are still trying to turn themselves around and diversify from manufacturing. Michigan is also home to three big universities that produce a broad pool of talent. According to Michigan State University, 70 percent of its engineering graduates remained in the state. Even so, Governor Rick Snyder has said he will not ask the state legislature to approve additional incentives just for Amazon, according to Crain's Detroit Business. The city’s mass transit system also isn’t on par with some other cities in the running, and Detroit has a smaller tech scene.

 

New York:  In its bid for HQ2, the Big Apple is pitching its diverse workforce, robust university ecosystem and access to advertising, fashion and other industries. Brooklyn is emerging as an attractive component of the bid, with its building boom and throngs of young residents. New York is so serious about HQ2 that Mayor Bill de Blasio had landmarks around the city, including the Empire State Building and One World Trade, lit up in "Amazon orange" on Wednesday night. (Neighboring Newark, New Jersey, is also jumping in to bid, offering practically the same workforce with $7 billion in potential tax credits.) The bid by the biggest U.S. city may be at a disadvantage because of limited space for construction and already-high housing costs.

Amazon is expected to reveal the home of its new headquarters some time in 2018.

Separately, in its quest to consume all possible information about its clients, next month Amazon customers in select US states will be able to order take-out from certain local restaurants directly through the Amazon app. Users will be able to browse participating restaurants, place their order and checkout with stored payment information all through the app, without any additional accounts or logins needed.

The expansion of Amazon Pay integrates Clover point-of-sale systems, sending orders directly to restaurants in select states in the Northeast U.S.  "Clover has the technology and scale we needed to bring this vision to life," Amazon said in a statement. "We've had an ongoing partnership with Clover — we used them to great success with our Kindle pop-up stores — and it was only natural to expand on that."

According to CNBC, the restaurant take-out service is already available for orders from T.G.I. Fridays as of July and will expand to include restaurants in New York, Massachusetts, Connecticut, New Jersey, Pennsylvania, Maryland and Washington D.C. — and, of course, the Seattle area.

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YUNOSELL's picture

They should make a reality TV show out of it -- have Simon Cowell and Gordon Ramsay judge all proposing cities on stage, and then make a final decision after giving them all insults and constant derision for the sake of our entertainment

ZippyBananaPants's picture

Geraldo would be best. He is the most qualified.

NoDebt's picture

It's gonna be 239 soon.  I am finalizing my proposal to have them set up their new HQ where my house is.

I promised them the moon.  $100 billion in tax breaks, free electricity, custom-built mass transportation system, the whole shootin' match.  

I figure by the time they figure out it's all bullshit I'll have my money in an offshore account somewhere.  I can live very comfortably on the crumbs that fall off Amazon's plate.

 

WTFRLY's picture

Behold, t3h power of j00

BennyBoy's picture

 

Proposal 239:

I'll sell them my small property in a suburb. Amazon can build a 387 story building and the town will give them $1T in deferred tax benefits over a 1,000 year period.

JimmyJones's picture

No major city will get this.  A sub-urb located near a major will that has the following criteria. Close, Access to major highways, Close Access to a international Airport, Close Access to Mass Transit.

CuttingEdge's picture

How about Mars? Or maybe Pluto?

And Bezos can take his mate Zuckerfuck and FaecesBook along for the benefit of the entire human race.

I mean, it's not as if either of them wouldn't jump at the chance of paying less in taxes.

Hippocratic Oaf's picture

my brother is the lead for Jersey City, NJ proposal

GREAT presentation

NO fucking chance of winning

Sanity Bear's picture

They're taking proposals? I've got a proposal...

cbxer55's picture

Indecent, I presume?  ;-)

cbxer55's picture

True. Anyone who would voluntarily move  to joisey is a mental case. My parents bailed from that shithole of a state in 76, when I was 15. So happy they did. 

beachdude's picture

That describes Irvine, in Orange County, California.
Please. God. No.

totenkopf88's picture

Haha- Detroit- sheeeeeeeeeeeeeee-it!

Bastiat's picture

The City will provide the moat, double concertina wire, electric fences, and dogs. 

Shitonya Serfs's picture

Your packages will be stolen before they make it to the trucks.

BarkingCat's picture

This is not where they will out their distribution center but rather all the H1B1 slaves. 

Bigly's picture

Hartford put their bid in. Their delusion is truly psychedelic.

Lmao.

kbohip's picture

Amazon years after building their new HQ in Detroit....

Bezos:  "Hey, um..where are all those tax breaks you promised us to move here, oh and my limo got stolen again."

Detroit Rep:  "Tax breaks?  Shiiittt.  Those were only good for the terms of the people that promised them.  There be new kangs in town naw.  As for that limo?  You didn't pay the protection money again.  Shit happens mofo.  Now what's the code for the booze cabinet in this bitch?

Ikiru's picture

I'm assuming you're alluding to The Wire--amusing compilation.
https://youtu.be/70eU840lc38

small axe's picture

They should model the competition after the Hunger Games. Each city sends a teenage contestant to battle contestants from other cities: last child standing wins, the city gets the HQ, and the contestant's family gets a lifetime of Prime shopping.

HRClinton's picture

Proposal 239: Temple Mount, Jerusalem.

You have our blessings.

dogismycopilot's picture

He's waiting for someone offer child sacrifices. 

Arnold's picture

Should get the Podesta Group on board then.

hedgeless_horseman's picture

 

I love shop Big Brother.

Ignatius's picture

Begging for competition.

At Nile Books and Movies we neither track nor report your private purchases.

 

Yukon Cornholius's picture

Yeah, but who wants to shop in Africa? MAGA. Mississippi...although still kinda African.

Ignatius's picture

First big river I thought of... whatever.

Yukon Cornholius's picture

It's all coming fromYalu anyway. Damn mongorians.

ZeroPoint's picture

Oh yes, please put it in Chimpcago. Right next to the Obongo 'presidential' library and 'learning' center.

Privyet_Jet's picture

center for kids who can't read good and other stuff

aliens is here's picture

Why is that fker always laughing?

Muroluvmi's picture

NJ was able to offer $7 billion in tax credits because they tax the living shit out of anywhere living there. Low tax states can't offer large tax breaks since the local mafia hasn't skimmed as much from the populace.

totenkopf88's picture

Not necessarily true- Redneck states throw massive tax breaks at foreign car companies and then the companies pay the meth-heads on the assembly lines shitty wages. German manufacturing workers look on US counterparts with the same disdain that we look at Mexican manufacturing workers. 

Escrava Isaura's picture

Great point.

My guess would be DC Metro/Baltimore.

 

jmack's picture

meanwhile those same areas have their boot firmly on the neck of small and medium size companies, who actually pay taxes.

Billy the Poet's picture

My complaint exactly. They offer the behemoth tax breaks rather than cut rates across the board.

Not in my town (Pittsburgh)!

Arnold's picture

No worries. I go to the airport regularly.
The construction coming in from the north for the past year is horrendous.

As close as 'you can't get there from here'
as you can get in the lower 56 states.

ali-ali-al-qomfri's picture

DRONE DELIVERY, HQ2 is going to be an airport or rather a drone port.

He needs a control tower, hangers and mntc. bays for the drones.

Jets could use the runway. An old military airport.

Bay of Pigs's picture

Jeff Bezos is a cunt.

Bay of Pigs's picture

I have no issue with him getting wealthy. The way he does business makes a him a cunt as does his propaganda rag, the WaPo.

JoeTurner's picture

Detroit is clearly the best choice. Yuppies will flood into the area to enjoy the wonderful diversity and year round balmy climate...

24Richie's picture

The facility will be in a place where the employees can afford the cost of housing.

GFKjunior's picture

Stay out of Austin TX!

Robert Trip's picture

Place it in the "Fires of Hell" where it belongs.

Bezos is heading there anyway.