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"Cook county, which includes Chicago, saw the largest population fall in the same period, with a net loss of more than 21,000 people. Seven of America’s eight fastest-growing states are in the west. (In addition to Arizona, they are Colorado, Idaho, Nevada, Oregon, Utah and Washington; the eighth state is Florida.) Illinois, which contains Chicago, has lost more people than any other state for three years in a row."
People are leaving the suburbs faster than the city because most suburbs are similar and they can live cheaper in DFW suburbs. Most of the people leaving the city are poor people who can have a higher quality of life elsewhere.
Chicago doesn't really feel like it's in a decline, but it doesn't feel like it's booming like DFW either.
There are a ton of "I just graduated from a large Midwest state school" people moving to Chicago. Seems like the ideal group of people Amazon would be looking for.
However, there's no way they'll get a tax break from the city. Just ain't gonna happen...
Amazon will want to have their 2nd HQ a good distance from the first, so anything like the West Coast, Colorado, Utah, etc... is probably out.
I also think they would probably want to avoid being on the East Coast, anywhere. That is due to higher cost of living and natural disasters. They don't have to worry about things like hurricanes in Seattle, but on the East Coast, a damaging hurricane like Harvey could completely screw with their warehouses and shipping schedules and create a huge mess. So anything in FL is probably out. Houston, too.
I could see places like DFW, Austin, or San Antonio in the running, as well as Kansas City, Charlotte, and Atlanta. Definitely think Toronto could be a contender, the exchange rates right now would be favorable to them to do so. Doubtful Boston or NYC would get the nod.
Don't look down on Chicago. Despite not drinking the Republican Kool-Aid and becoming in a "business friendly" Red State, Chicago is still a beacon of light in the rusting Midwest. DFW is beholden to one airline while O'Hare is a hub for two airlines. There are 10 million people in Chicagoland and the North and West suburbs are also full of corporations and talent. The Loop is what Texas and the South could dream about.
QOL is also factor and Chicago's lakefront and parks are aesthetically beautiful. Metra relieves the stress of driving the 30 miles on the freeway.
Illinois can't even pay their lottery winners. Chicago certainly can't afford to make huge tax incentives to entice them. I'm sure Chicago isn't even a blip on the radar.
Amazon will want to have their 2nd HQ a good distance from the first, so anything like the West Coast, Colorado, Utah, etc... is probably out.
I also think they would probably want to avoid being on the East Coast, anywhere. That is due to higher cost of living and natural disasters. They don't have to worry about things like hurricanes in Seattle, but on the East Coast, a damaging hurricane like Harvey could completely screw with their warehouses and shipping schedules and create a huge mess. So anything in FL is probably out. Houston, too.
I could see places like DFW, Austin, or San Antonio in the running, as well as Kansas City, Charlotte, and Atlanta. Definitely think Toronto could be a contender, the exchange rates right now would be favorable to them to do so. Doubtful Boston or NYC would get the nod.
I guess it depends on the purpose of their 2nd HQ; I thought it was more to house professional services rather than warehouse type stuff.
I can understand not wanting to be "too close" to Seattle (e.g. Portland), but what would be the reason they would want it a good distance? Won't that increase traveling times between the two campuses (if needed)? Denver is close, but far enough I think.
I am thinking they probably already have a very small list of cities in mind and just want to see who will give them the best economic incentives before deciding. This is their way to get the incentives thrown at them.
1. Site/building. Amazon is looking for existing buildings of at least 500,000 square feet and total site space of up to 8 million sq ft. It would like the site to be within 30 miles of a population center and within 45 minutes of an international airport. It prefers metro areas with more than 1 million people. Its Seattle headquarters includes 33 buildings totaling 8.1 million sq ft.
2. Capital and operating costs. Amazon is prioritizing “stable and business-friendly regulations and tax structure” in its considerations. The company is seeking out incentives from state and local governments “to offset initial capital outlay and ongoing operational costs.” At its Seattle headquarters, Amazon says it invested $3.7 billion in buildings and infrastructure from 2010 to 2017, and spent another $1.4 billion on utilities and maintenance.
3. Incentives. The company is asking applicants to outline the specific types of incentives they could offer, such as tax credits and relocation grants, as well calculations on the amount of total incentives that could be provided. “The initial and ongoing cost of doing business are critical decision drivers,” the RFP states.
4. Labor force. Hiring 50,000 skilled workers is no easy task, and Amazon wants to make sure its new headquarters is in an area with a readily available pool of talent. The company is prioritizing sites with a “strong university system.” It’s asked cities to provide a list of universities and community colleges with “relevant degrees” plus the number of students to graduate with those degrees over the past three years. Amazon also wants information on computer-science programs in the local and regional K-12 education system.
5. Logistics. Amazon is first and foremost a master of logistics, so it should come as no surprise that the company cares a lot about transportation. Amazon wants on-site access to mass transit—train, subway, or bus—and to be no more than one or two miles from major highways and connecting roads. It wants to be within 45 minutes of an international airport with daily direct flights to Seattle, New York, the San Francisco Bay area, and Washington DC. The company is also asking applicants to identify “all transit options, including bike lanes and pedestrian access” for the proposed site and to rank traffic congestion during peak commuting hours.
6. Time to operations. To begin construction as soon as possible, Amazon wants an outline of the permitting process and approximate timetable ahead of “Phase 1” of the building process—the first 500,000 to 1 million sq ft, for an investment of $300 million to $600 million.
7. Cultural community fit. Like any tech company, Amazon cares about “culture fit.” It defines this as a diverse population, strong higher-education system, and local government that is “eager and willing to work with the company.” Amazon is asking cities to “demonstrate characteristics of this” in their responses. “We encourage testimonials from other large companies,” it adds.
8. Community/quality of life. The new headquarters should be in a place where people want to live. Amazon is interested in daily living and recreational opportunities for people in each proposed metro area. It is also requesting information about housing prices and availability, general cost of living, and crime statistics.
I can understand not wanting to be "too close" to Seattle (e.g. Portland), but what would be the reason they would want it a good distance? Won't that increase traveling times between the two campuses (if needed)? Denver is close, but far enough I think.
I am thinking they probably already have a very small list of cities in mind and just want to see who will give them the best economic incentives before deciding. This is their way to get the incentives thrown at them.
Amazon is just like any other company... they have employees who live scattered around the country, as well as vendors that they do business with. Most typical sales organizations have territories. Amazon is a bit different since it's an online retailer, but the offline stuff is the same... You have people and things needing to get to and from HQ. When Amazon had one distribution center in Seattle, delivering something to NY or FL took a lot longer. So they build distribution centers in eastern states and other places where they could cut down on shipping costs and time. Same goes for people, meetings, etc.
I'm sure they've got a few top choices already, a move like this takes years to plan.
1. Site/building. Amazon is looking for existing buildings of at least 500,000 square feet and total site space of up to 8 million sq ft. It would like the site to be within 30 miles of a population center and within 45 minutes of an international airport. It prefers metro areas with more than 1 million people. Its Seattle headquarters includes 33 buildings totaling 8.1 million sq ft.
2. Capital and operating costs. Amazon is prioritizing “stable and business-friendly regulations and tax structure” in its considerations. The company is seeking out incentives from state and local governments “to offset initial capital outlay and ongoing operational costs.” At its Seattle headquarters, Amazon says it invested $3.7 billion in buildings and infrastructure from 2010 to 2017, and spent another $1.4 billion on utilities and maintenance.
3. Incentives. The company is asking applicants to outline the specific types of incentives they could offer, such as tax credits and relocation grants, as well calculations on the amount of total incentives that could be provided. “The initial and ongoing cost of doing business are critical decision drivers,” the RFP states.
4. Labor force. Hiring 50,000 skilled workers is no easy task, and Amazon wants to make sure its new headquarters is in an area with a readily available pool of talent. The company is prioritizing sites with a “strong university system.” It’s asked cities to provide a list of universities and community colleges with “relevant degrees” plus the number of students to graduate with those degrees over the past three years. Amazon also wants information on computer-science programs in the local and regional K-12 education system.
5. Logistics. Amazon is first and foremost a master of logistics, so it should come as no surprise that the company cares a lot about transportation. Amazon wants on-site access to mass transit—train, subway, or bus—and to be no more than one or two miles from major highways and connecting roads. It wants to be within 45 minutes of an international airport with daily direct flights to Seattle, New York, the San Francisco Bay area, and Washington DC. The company is also asking applicants to identify “all transit options, including bike lanes and pedestrian access” for the proposed site and to rank traffic congestion during peak commuting hours.
6. Time to operations. To begin construction as soon as possible, Amazon wants an outline of the permitting process and approximate timetable ahead of “Phase 1” of the building process—the first 500,000 to 1 million sq ft, for an investment of $300 million to $600 million.
7. Cultural community fit. Like any tech company, Amazon cares about “culture fit.” It defines this as a diverse population, strong higher-education system, and local government that is “eager and willing to work with the company.” Amazon is asking cities to “demonstrate characteristics of this” in their responses. “We encourage testimonials from other large companies,” it adds.
8. Community/quality of life. The new headquarters should be in a place where people want to live. Amazon is interested in daily living and recreational opportunities for people in each proposed metro area. It is also requesting information about housing prices and availability, general cost of living, and crime statistics.
Add Minneapolis to the list, if this outline is to be believed.
1. Site/building. Amazon is looking for existing buildings of at least 500,000 square feet and total site space of up to 8 million sq ft. It would like the site to be within 30 miles of a population center and within 45 minutes of an international airport. It prefers metro areas with more than 1 million people. Its Seattle headquarters includes 33 buildings totaling 8.1 million sq ft.
2. Capital and operating costs. Amazon is prioritizing “stable and business-friendly regulations and tax structure” in its considerations. The company is seeking out incentives from state and local governments “to offset initial capital outlay and ongoing operational costs.” At its Seattle headquarters, Amazon says it invested $3.7 billion in buildings and infrastructure from 2010 to 2017, and spent another $1.4 billion on utilities and maintenance.
3. Incentives. The company is asking applicants to outline the specific types of incentives they could offer, such as tax credits and relocation grants, as well calculations on the amount of total incentives that could be provided. “The initial and ongoing cost of doing business are critical decision drivers,” the RFP states.
4. Labor force. Hiring 50,000 skilled workers is no easy task, and Amazon wants to make sure its new headquarters is in an area with a readily available pool of talent. The company is prioritizing sites with a “strong university system.” It’s asked cities to provide a list of universities and community colleges with “relevant degrees” plus the number of students to graduate with those degrees over the past three years. Amazon also wants information on computer-science programs in the local and regional K-12 education system.
5. Logistics. Amazon is first and foremost a master of logistics, so it should come as no surprise that the company cares a lot about transportation. Amazon wants on-site access to mass transit—train, subway, or bus—and to be no more than one or two miles from major highways and connecting roads. It wants to be within 45 minutes of an international airport with daily direct flights to Seattle, New York, the San Francisco Bay area, and Washington DC. The company is also asking applicants to identify “all transit options, including bike lanes and pedestrian access” for the proposed site and to rank traffic congestion during peak commuting hours.
6. Time to operations. To begin construction as soon as possible, Amazon wants an outline of the permitting process and approximate timetable ahead of “Phase 1” of the building process—the first 500,000 to 1 million sq ft, for an investment of $300 million to $600 million.
7. Cultural community fit. Like any tech company, Amazon cares about “culture fit.” It defines this as a diverse population, strong higher-education system, and local government that is “eager and willing to work with the company.” Amazon is asking cities to “demonstrate characteristics of this” in their responses. “We encourage testimonials from other large companies,” it adds.
8. Community/quality of life. The new headquarters should be in a place where people want to live. Amazon is interested in daily living and recreational opportunities for people in each proposed metro area. It is also requesting information about housing prices and availability, general cost of living, and crime statistics.
I stand by my original guess. Toronto in Canada or something on the East Coast.
Amazon will want to have their 2nd HQ a good distance from the first, so anything like the West Coast, Colorado, Utah, etc... is probably out.
I also think they would probably want to avoid being on the East Coast, anywhere. That is due to higher cost of living and natural disasters. They don't have to worry about things like hurricanes in Seattle, but on the East Coast, a damaging hurricane like Harvey could completely screw with their warehouses and shipping schedules and create a huge mess. So anything in FL is probably out. Houston, too.
I could see places like DFW, Austin, or San Antonio in the running, as well as Kansas City, Charlotte, and Atlanta. Definitely think Toronto could be a contender, the exchange rates right now would be favorable to them to do so. Doubtful Boston or NYC would get the nod.
I think that NY and Boston are the clear front runners for the reasons I noted, but NY clearly has the lead. In addition to the prior reasons I mentioned, Bezos has a $30m apartment there, which shows his love for NYC. Also, Amazon just bought a building across from the ESB, and it announced this week that it's building a nearly 1m sf distribution center in Staten Island.
The McDonald's headquarter campus in Oak Brook, IL would be a perfect fit, if they want existing structures. And the timeline is perfect, too. I grew up nearby, so I'm a little biased!
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