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Title Title
Amazon's new headquarters: finding the best fit, and the best deal Amazon's new headquarters: finding the best fit, and the best deal
Summary Summary
Help WikiTribune track the economic incentives and other perks behind the final 20 bids for the next Amazon headquarters Help WikiTribune track the economic incentives and other perks behind the final 20 bids for the next Amazon headquarters
Highlights Highlights
Content Content
<i>This is an developing story that needs contributions and expansion. EDIT to add information or discuss in TALK. </i> <i>This is an developing story that needs contributions and expansion. EDIT to add information or discuss in TALK. </i>
<strong>There were <a href="https://www.reuters.com/article/amazoncom-headquarters/amazon-receives-238-proposals-for-its-second-headquarters-idUSL2N1MY0SG">238 North American cities</a> that requested to be home to the next Amazon headquarters, accompanying the online-shipping giant's original Seattle location. The list of suitors narrowed to <a href="https://apnews.com/ed3321a8c9ca41cba63e2528b727f037">20 metros</a> on Wednesday. They were:</strong> <strong>There were <a href="https://www.reuters.com/article/amazoncom-headquarters/amazon-receives-238-proposals-for-its-second-headquarters-idUSL2N1MY0SG">238 North American cities</a> that requested to be home to the next Amazon headquarters, accompanying the online-shipping giant's original Seattle location. The list of suitors narrowed to <a href="https://apnews.com/ed3321a8c9ca41cba63e2528b727f037">20 metros</a> on Wednesday. They were:</strong>
<em>Atlanta, Austin, Boston, Chicago, Columbus OH, Dallas, Denver, Indianapolis, Los Angeles, Miami, Montgomery County, Md., Nashville, Newark, New York City, Northern Virginia, Philadelphia, Pittsburgh, Raleigh, N.C., Toronto, Washington, D.C.</em> <em>Atlanta, Austin, Boston, Chicago, Columbus OH, Dallas, Denver, Indianapolis, Los Angeles, Miami, Montgomery County, Md., Nashville, Newark, New York City, Northern Virginia, Philadelphia, Pittsburgh, Raleigh, N.C., Toronto, Washington, D.C.</em>
<a href="https://www.reuters.com/article/us-amazon-com-headquarters/billions-in-tax-breaks-offered-to-amazon-for-second-headquarters-idUSKBN1CO1IP">Amazon said that the location of the new HQ </a>must have at least 1 million people and have access to good education and mass transit -- in short, it must be livable for the modern corporate executive.  <a href="https://www.reuters.com/article/us-amazon-com-headquarters/billions-in-tax-breaks-offered-to-amazon-for-second-headquarters-idUSKBN1CO1IP">Amazon said that the location of the new HQ </a>must have at least 1 million people, have access to good education and mass transit -- in short, is it livable for the modern corporate executive.
But what Amazon is really looking for is a good deal. In <a href="https://images-na.ssl-images-amazon.com/images/G/01/Anything/test/images/usa/RFP_3._V516043504_.pdf">their call out</a> for pitches the corporate office said that they were looking for the "best real estate," "a stable and business-friendly environment and tax structure," and most importantly "incentive programs."  But what Amazon is really looking for, is a good deal. In <a href="https://images-na.ssl-images-amazon.com/images/G/01/Anything/test/images/usa/RFP_3._V516043504_.pdf">their call out</a> for pitches, the corporate office said that they were looking for the "best real estate," "a stable and business-friendly environment and tax structure," and most importantly "incentive programs."
The bidding war over Amazon's next headquarters largely boils down to <strong><em>economic incentives</em></strong>, and which local government is willing to make the most generous offer. Political leaders must determine the tax breaks and treasury money they can afford to give in order to bring high paying jobs and economic activity to their constituents.  The bidding war over Amazon's next headquarters largely boils down to <strong><em>economic incentives</em></strong>, and which local government is willing to make the most generous offer. Political leaders must determine the tax breaks and treasury money they can afford to give, in order to bring high paying jobs and economic activity to their constituents.
Whether an economic incentive package is a corporate giveaway or a coup for taxpayers is difficult to predict. There are many factors in a large corporation's interactions with a city, and then gradations within each category. Whether an economic incentive package is a corporate giveaway or a coup for taxpayers is difficult to predict. There are many factors in a large corporation's interactions with a city, and then gradations within each category.
<strong>Jobs, Jobs, Jobs. </strong>Amazon says that the new headquarters could employ as many as 50,000 people. But no timeline was given as to when this number might be reached, only that it will take <a href="https://images-na.ssl-images-amazon.com/images/G/01/Anything/test/images/usa/RFP_3._V516043504_.pdf">"multiple years."</a> <strong>Jobs, Jobs, Jobs. </strong>Amazon says that the new headquarters could employ as many as 50,000 people. But no timeline was given as to when this number might be reached, only that it will take <a href="https://images-na.ssl-images-amazon.com/images/G/01/Anything/test/images/usa/RFP_3._V516043504_.pdf">"multiple years."</a>
<strong>Investment.</strong> Amazon says it will <a href="https://apnews.com/ed3321a8c9ca41cba63e2528b727f037">invest $5 billion</a> to build the new campus. It is likely that the concentration of business executives will attract other construction projects as well. Part of the lure of the new corporate headquarters is the possibility of other businesses sprouting up around it.  <strong>Investment.</strong> Amazon says it will <a href="https://apnews.com/ed3321a8c9ca41cba63e2528b727f037">invest $5 billion</a> to build the new campus. It is likely that the concentration of business executives will attract other construction projects as well. Part of the lure of having new corporate headquarters are the other businesses that sprout up around it.
<strong>Housing.</strong> While high-paying jobs bring a glut of benefits, it also puts pressure on the housing market. This can put a strain on middle-class and working class families who typically rent.  <strong>Housing.</strong> While high-paying jobs bring a glut of benefits, it also puts pressure on the housing market. In cities where many people rent, this can put a strain on middle-class and working class families.
Amazon's headquarters in Seattle is in the most expensive real estate market in the USA, according to a <a href="https://www.pwc.com/us/en/industries/asset-wealth-management/real-estate/emerging-trends-in-real-estate.html">study from PwC Research</a>. The shipping company's presence is a major reason for this . </span>  <span style="font-family: inherit;font-size: 1.6rem">Amazon's home site of Seattle is the most expensive real estate market in the USA, according to a <a href="https://www.pwc.com/us/en/industries/asset-wealth-management/real-estate/emerging-trends-in-real-estate.html">study from PwC Research</a>. The shipping company's presence is a major reason for this . </span>
Contribute to this section using EDIT STORY. Use the format below to add your suggestions to each city.</em>  <em style="font-family: inherit;font-size: 1.6rem">Contribute to this section using EDIT STORY. Use the format below to add your suggestions to each city.</em>
<h2>What these cities have to offer</h2> <h2>What these cities have to offer</h2>
<ul> <ul>
<li><strong>Atlanta</strong>  <li><strong>Atlanta</strong>
<ul> <ul>
<li><strong>Location:</strong> Atlanta Hartfield-Jackson airport is the <a href="http://www.aci.aero/News/Releases/Most-Recent/2017/04/19/ACI-releases-preliminary-2016-world-airport-traffic-rankingsRobust-gains-in-passenger-traffic-at-hub-airports-serving-transPacific-and-East-Asian-routes">busiest in the world</a>, according to Airports Council International, giving Amazon employees access to an international hub that served 104 million passengers in 2016.</li>  <li><strong>Location:</strong> Atlanta Hartfield-Jackson airport is the <a href="http://www.aci.aero/News/Releases/Most-Recent/2017/04/19/ACI-releases-preliminary-2016-world-airport-traffic-rankingsRobust-gains-in-passenger-traffic-at-hub-airports-serving-transPacific-and-East-Asian-routes">busiest in the world</a>, according to Airports Council International, giving Amazon employees access to an international hub that served 104 million passengers in 2016.</li>
</ul> </ul>
</li> </li>
<li><strong>Austin, Texas</strong></li>  <li><strong>Austin, Texas</strong></li>
<li><strong>Boston</strong></li>  <li><strong>Boston</strong></li>
<li><strong><strong>Chicago</strong></strong>   <li><strong>Chicago</strong></li>
<ul>  
<li><strong>Incentive:</strong> A total of $2.25 billion in state and city incentives, including -- $1.4 billion in Economic Development for a Growing Economy (<a href="https://www.illinois.gov/dceo/ExpandRelocate/Incentives/Pages/EDGE.aspx">EDGE</a>) tax credits from Illinois. The <a href="https://chicago.suntimes.com/news/chicago-makes-first-cut-for-new-amazon-headquarters/"><em>Chicago Sun-Times</em> reports</a> that the bid could be even higher if Amazon chooses specific locations -- the <a href="https://en.wikipedia.org/wiki/James_R._Thompson_Center">Thompson Center</a> or the <a href="https://en.wikipedia.org/wiki/Michael_Reese_Hospital">Michael Reese Hospital</a> - -both large, under-utilized structures.</li>  
<li><strong>Location: </strong><a href="https://www.chicagoreader.com/chicago/chicagos-amazon-hq2-bid-money-for-nothing-tifs-for-free/Content?oid=33535992">Ten different sites</a> around the city, all with access to public transportation and two international airports. <em>(Chicago Reader)</em></li>  
</ul>  
</li>  
<li><strong>Columbus, Ohio</strong>  <li><strong>Columbus, Ohio</strong>
<ul> <ul>
<li><strong>Incentive: </strong> Full property-tax abatement for 15-years. This means that Amazon would not have to pay any additional property taxes for new construction or renovation projects. <em><a href="http://www.dispatch.com/news/20171019/documents-detail-columbus-bid-to-lure-amazons-2nd-hq">The Columbus Dispatch</a> </em>says this would save Amazon $456,750 per $1 million of investment in property costs for the 15-year period.</li>   <li><strong>Incentive: </strong> Full property-tax abatement for 15-years. This means that Amazon would not have to pay any additional property taxes for new construction or renovation projects. <a href="http://www.dispatch.com/news/20171019/documents-detail-columbus-bid-to-lure-amazons-2nd-hq">The Columbus Dispatch</a> says this would save Amazon $456,750 per $1 million of investment in property costs for the 15-year period.</li>
<li><strong>Incentive:</strong> <a href="http://www.dispatch.com/news/20171019/documents-detail-columbus-bid-to-lure-amazons-2nd-hq">35 percent income-tax refund</a> on withholdings for <em>new</em> full-time employees for 15-years. For every worker hired, Amazon can get a refund of 35 percent of taxes spent on pensions and other saving accounts. That would be up to $50 million annually. (<em>Columbus Dispatch</em>).</li>  <li><strong>Incentive:</strong> <a href="http://www.dispatch.com/news/20171019/documents-detail-columbus-bid-to-lure-amazons-2nd-hq">35 percent income-tax refund</a> on withholdings for <em>new</em> full-time employees for 15-years. For every worker hired, Amazon can get a refund of 35 percent of taxes spent on pensions and other saving accounts. That would be up to $50 million annually. (<em>Columbus Dispatch</em>).</li>
<li><strong>Construction:</strong> <a href="http://www.dispatch.com/news/20171019/documents-detail-columbus-bid-to-lure-amazons-2nd-hq">60 percent of city income-tax</a> from Amazon employees will go towards supporting the development and transit. (<em>Columbus Dispatch</em>).</li>  <li><strong>Construction:</strong> <a href="http://www.dispatch.com/news/20171019/documents-detail-columbus-bid-to-lure-amazons-2nd-hq">60 percent of city income-tax</a> from Amazon employees will go towards supporting the development and transit. (<em>Columbus Dispatch</em>).</li>
</ul> </ul>
</li> </li>
<li><strong>Dallas</strong></li>  <li><strong>Dallas</strong></li>
<li><strong>Denver</strong></li>  <li><strong>Denver</strong></li>
<li><strong>Indianapolis</strong></li>  <li><strong>Indianapolis</strong></li>
<li><strong>Los Angeles</strong></li>  <li><strong>Los Angeles</strong></li>
<li><strong>Miami</strong></li>  <li><strong>Miami</strong></li>
<li><strong>Montgomery County, Md.</strong></li>  <li><strong>Montgomery County, Md.</strong></li>
<li><strong>Nashville, Tenn.</strong></li>  <li><strong>Nashville, Tenn.</strong></li>
<li><strong>Newark, N.J.</strong>  <li><strong>Newark, N.J.</strong>
<ul> <ul>
<li><strong>Incentives: </strong>The state of New Jersey <a href="http://www.nj.com/news/index.ssf/2017/10/holdnew_jerseys_7b_deal_offered_to_amazon_is_it_wo.html">offered $7 billion</a> in tax credits, the second largest economic incentive package in U.S. history. (<em>NJ.com</em>). The proposal was made in October 2017 along with the initial 238 offerings.  <li><strong>Incentives: </strong>The state of New Jersey <a href="http://www.nj.com/news/index.ssf/2017/10/holdnew_jerseys_7b_deal_offered_to_amazon_is_it_wo.html">offered $7 billion</a> in tax credits, the second largest economic incentive package in U.S. history. (<em>NJ.com</em>). The proposal was made in October 2017 along with the initial 238 offerings.
<ul> <ul>
<li>The proposal comes through the <a href="http://www.njleg.state.nj.us/2016/Bills/S4000/3631_I1.PDF">Grow New Jersey Assistance Program</a>, which gives tax breaks to businesses that move to the most economically depressed areas of the state. Since Newark is not one of the most depressed areas of NJ, the legislature will have to amend the program in order to give the incentive package to Amazon.</li>  <li>The proposal comes through the <a href="http://www.njleg.state.nj.us/2016/Bills/S4000/3631_I1.PDF">Grow New Jersey Assistance Program</a>, which gives tax breaks to businesses that move to the most economically depressed areas of the state. Since Newark is not one of the most depressed areas of NJ, the legislature will have to amend the program in order to give the incentive package to Amazon.</li>
</ul> </ul>
</li> </li>
<li><strong>Location:</strong> Newark is a <a href="https://www.google.com/maps/dir/Newark,+NJ/New+York+City,+NY/@40.742667,-74.1523243,12z/data=!3m1!4b1!4m14!4m13!1m5!1m1!1s0x89c25370329a0e1d:0xe1bcdc2adcfee473!2m2!1d-74.1723667!2d40.735657!1m5!1m1!1s0x89c24fa5d33f083b:0xc80b8f06e177fe62!2m2!1d-74.0059728!2d40.7127753!3e3">19 minute train ride</a> to New York City, giving Amazon potential access to the U.S. financial hub without paying for real estate costs of Manhattan.</li>  <li><strong>Location:</strong> Newark is a <a href="https://www.google.com/maps/dir/Newark,+NJ/New+York+City,+NY/@40.742667,-74.1523243,12z/data=!3m1!4b1!4m14!4m13!1m5!1m1!1s0x89c25370329a0e1d:0xe1bcdc2adcfee473!2m2!1d-74.1723667!2d40.735657!1m5!1m1!1s0x89c24fa5d33f083b:0xc80b8f06e177fe62!2m2!1d-74.0059728!2d40.7127753!3e3">19 minute train ride</a> to New York City, giving Amazon potential access to the U.S. financial hub without paying for real estate costs of Manhattan.</li>
<li><strong>Presence</strong>: Audible, an Amazon company, has headquarters located in Newark.  This gives Amazon a large foot in the door already.</li>  <li><strong>Presence</strong>: Audible, an Amazon company, has headquarters located in Newark.  This gives Amazon a large foot in the door already.</li>
</ul> </ul>
</li> </li>
<li><strong>New York City</strong></li>  <li><strong>New York City</strong></li>
<li><strong>Northern Virginia</strong></li>  <li><strong>Northern Virginia</strong></li>
<li><strong>Philadelphia</strong></li>  <li><strong>Philadelphia</strong></li>
<li><strong>Pittsburgh</strong></li>  <li><strong>Pittsburgh</strong></li>
<li><strong>Raleigh, N.C.</strong>  <li><strong>Raleigh, N.C.</strong>
<ul> <ul>
<li><strong>Business Climate</strong>: <a href="https://www.cnbc.com/2017/11/20/these-cities-may-win-war-for-amazons-new-headquarters.html">CNBC ranked Raleigh</a> as the most suitable destination for Amazon's HQ2 mainly because of North Carolina's state tax and regulatory environment.</li>  <li><strong>Business Climate</strong>: <a href="https://www.cnbc.com/2017/11/20/these-cities-may-win-war-for-amazons-new-headquarters.html">CNBC ranked Raleigh</a> as the most suitable destination for Amazon's HQ2 mainly because of North Carolina's state tax and regulatory environment.</li>
</ul> </ul>
</li> </li>
<li><strong>Toronto</strong></li>  <li><strong>Toronto</strong></li>
<li><strong>Washington, D.C.</strong></li>  <li><strong>Washington, D.C.</strong></li>
</ul> </ul>
<i>This is an developing story that needs contributions and expansion. EDIT to add information or discuss in TALK. </i> <i>This is an developing story that needs contributions and expansion. EDIT to add information or discuss in TALK. </i>
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