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Originally Posted by paul78701
Chart graphic from the article:
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This is the BIGGEST factor and everyone is silent. Compared to most other big cities, Amazon will be able to pay LESS to their employees and the employees will be able to live LARGER. This is about Amazon's bottom line. I have no idea why this is not discussed more.
Also, Amazon will not get fucked with like they will in other cities/states. Little/no unions, less taxes, business friendly state, but with a liberal vibe that will draw employees. All this on the cheap.
Sure the COA/nimbys will stick their noses in here and there, but basically, I don't see how the COA council can fuck this up so long as Amazon's developer doesn't need variances. And we have plenty of space that won't need much if any special council action, Catalyst notwithstanding. Even if Austin offers zero incentives (which i think would be the case), it will still be cheaper to locate here than in DC, Boston, etc....and Texas will offer them something.
A client of mine from NYC said it was cheaper for him to buy a home in Austin for just over $1m, establish residency, then exercise his options in a large company he co-founded.....than sell them with his current NYC residency. He would escape the city/state income tax. He now plans to sell the house for $400k profit in 4 years.
It's hard to underestimate how expensive it is to live in these other coastal cities. It is not just rent/mortgage...it's everything from milk to gasoline to registering your car.