Amazon HQ2 thread

[James Bond Agent 007]

Originally Posted by CherryCreek

Colorado announces they are ready to go!

https://www.nytimes.com/reuters/2017...?partner=IFTTT


Given short time fuse, I got to think that Amazon has been in discussions "informally" behind the scenes.

Fuse? You mean frame.

So far, both you and BNK think their city has been in discussions behind the scenes. And the reality is, either both, or neither, has really been in discussions behind the scenes.

[airhero]

Originally Posted by James Bond Agent 007

There is no way one block is going to be big enough to potentially support 8 million square feet, even if the block is large.

The portion of the block that could be built on is almost 450,000 sq ft. Probably not big enough for 8 million sq ft of building space but probably at least half that. It would give Amazon a great starting point and there are plenty of neighboring parcels that Amazon could snatch up in the future. Some are owned by the city and county. It's actually a perfect location. The city has been planning for a tech campus there for a long time and there is plenty of space to build in the area. Accessibility to that area both by car and transit is great. As RC14 said airport is 8 minutes away. There is a light rail station on site that all three lines run through. Infrastructure is already in place. There would be little upfront cost compared to what other cities are offering. It is actually quite perfect and would probably be much less costly than what other cities can offer. Add any incentives and from a financial standpoint, I think it makes a lot of sense for Amazon.

[emathias]

Originally Posted by OhioGuy

I was pretty much thinking the same thing. Though I'll also throw Toronto into the mix. Offers Amazon the ability to attract talent in both the US and Canada. Granted I'm sure they have no problem attracting talented Canadians now, but it would give them an opportunity to do so with potentially less need for work visas. Also would healthcare costs be lower for Amazon if they built in Toronto since Canadians already have government healthcare?

One unique advantage Toronto has over American cities is easier access to any worker from any of the Commonwealth countries. I don't think they'll go with Toronto, but that is one thing it could talk up.

[Steely Dan]

Originally Posted by James Bond Agent 007

So far, both you and BNK think their city has been in discussions behind the scenes. And the reality is, either both, or neither, has really been in discussions behind the scenes.

in general, i'm not one to back bnk's wacky theories, but CNBC has reported that rahm emmanuel has already had several conversations with bezos about this new HQ location.

this does NOT mean that chicago is the favorite, or a shoe-in, or anything silly like that, it just means that chicago will aggressively pursue this (no shock there, rahm could really use a big win right now).

Why the Midwest could make sense for Amazon's new headquarters

After Amazon announced plans to establish a second headquarters in North America, a source familiar with the talks told CNBC that Chicago Mayor Rahm Emanuel and Amazon CEO Jeff Bezos have had several conversations.

"Chicago's unmatched workforce, world-class universities and unparalleled access to destinations throughout the world make it the perfect headquarters location for companies large and small. That's also why Chicago has led the nation in corporate relocations for the last four years," a city spokesperson told CNBC.

Chicago is one of several cities that have been floated as a possible spot for Amazon, which is now headquartered in Seattle. Amazon has yet to confirm a location for its second base, although it said it prefers cities or suburban locations with more than 1 million people.

A location in the Midwest could make sense for several reasons, said James Thomson, former head of Amazon Services who is now an e-commerce consultant.

source: https://www.cnbc.com/2017/09/07/new-...kes-sense.html

[YSL]

Originally Posted by Gantz

If we still had Bloomberg as mayor, it would be a high chance this HQ would go to NYC, even despite the cost you outlined. However, with our current admin. I am VERY skeptical.

The Governor of NY is very pro business and has far more power over NYC than the mayor. The city relinquished most of the control to the state when it was bankrupt in the 70s. Cuomo is why they got Aetna.

[Crawford]

Originally Posted by YSL

I know it's the uncool thing to say, since it already has too much, but New York makes the best sense.

It ticks every one of their boxes. If you read the press release, Amazon wants 'mass transit on site.' New York has that. Amazon wants diversity. NYC has that. Amazon wants somewhere full of culture and attractive to highly educated/compensated people. That's certainly New York. It wants somewhere with talent. New York has an endless stream of talent. NYC is a prestigious HQ address, it's on the East Coast (I highly doubt they would pick a city that is near Seattle). It's expensive but millennials will shack up 5 in a room just to live in NYC. It's not particularly 'business friendly', but it does have the most fortune 500 companies of any city and does offer lots of technology related tax breaks (Amazon will probably pay no taxes there). Aetna just moved to NYC, and I'm sure they get tons of tax breaks.

The Hudson Yards development in Manhattan would make the best sense.

I think, yes, NYC probably makes the most sense for talent attraction and balancing strategic strengths with Seattle, but there are two big issues. First, costs, and second, NYC generally does not give out incentives.

There is NO WAY in hell NYC would ever lavish billions in incentives like a Dallas or Atlanta, or even Chicago. DeBlasio would never do such a thing. So I doubt NYC is in the game, unless Amazon really wants NYC.

[The North One]

Does Austin have a good airport? How many direct flights do they have?

[Crawford]

Originally Posted by YSL

The Governor of NY isvery pro business and has far more power over NYC than the mayor. They got Aetna. The city relinquished most of the control to the state when the city was bankrupt in the 70s.

Yes, Aetna HQ is moving to NYC, but under NYC's terms. They didn't lavish subsidies.

If Amazon wants to build in NYC, they would be welcomed, but they better not expect special treatment. An Amazon job isn't "more special" than another job, and we all know corporations of all stripes don't fulfill their promises.

I would bet big money that there is no such thing as a 50k sub-headquarters location, ever. Maybe a few thousand jobs or something, but not 50k. It will be more like a larger regional office. Makes no sense to split a HQ operations into two equal parts.

[PhilliesPhan]

Honestly, I have a tremendous amount of confidence that Philadelphia will end up grabbing HQ2.

Philly has something that few other cities currently have: a lot of developable space in a highly desirable submarket. University City has a large amount of land surrounding 30th Street Station, and has a solid development plan called Schuylkill Yards (SY). SY will be walkable, steps away from one of the nation's most comprehensive transit hubs, close to some of the best universities in the country (Penn, Drexel, and Temple), and just across the river from Center City. SY is also in a Keystone Opportunity Zone (KOZ), which means that there are already tax incentives ready for Amazon to take advantage of. Speaking of taxes, there is currently a bill in Harrisburg that will reduce the wage tax and Business Income and Receipts Tax (BIRT) if passed, which will lessen Amazon's potential tax burden. It's employees will enjoy some of the country's best walkability and architecture at a fraction of the cost of other cities scoring excellent in the two aforementioned categories. There is no need for the car in (most of) Philly: SEPTA provides a thorough coverage of the city and surrounding suburbs, and Indego is one of the nation's most popular bikesharing services. If Amazon ever needs to expand in the future, there is another long-range development plan in University City: the 30th Street Station District Plan, which will be Philly's equivalent of Hudson Yards.

Additionally, it is worth mentioning that Amazon already has a significant amount of its warehouses and fulfillment centers spread across PA, NJ, DE, and MD. From an operations perspective, Philly is the perfect location to manage its shipping chain.

The other cities that I think have a great chance of landing Amazon are: NYC, Boston, D.C., Chicago, and possibly Baltimore.

[C.]

I can see Philly being a strong contender, followed by the research triangle in Raleigh-Durham.

[austlar1]

Originally Posted by The North One

Does Austin have a good airport? How many direct flights do they have?

Plenty of domestic non stop flights to all major cities, but only two trans atlantic flights, one to London and one to Frankfurt. Plans afoot for flights to Tokyo and/or Seoul, but so far not in place.

[Pedestrian]

Originally Posted by The North One

Everyone is focused on American cities but what about Canada? Montreal would be great for them.

This is NOT a Socratic question--I don't know the answer.

Are there 50,000 unemployed or underemployed Canadians with the sort of skills Amazon might need in a headquarters? If not, would Canadian law allow the hiring of Americans to work in Canada for Amazon?

I don't really know enough about the laws in the 3 North American countries other than my own, but generally there are retrictions on employment of non-citizens in most countries. That tends to mean putting something like this in the country with the largest pool of potential employees.

[JManc]

Originally Posted by The North One

Does Austin have a good airport? How many direct flights do they have?

Other than Southwest, not very many. To get to most other destinations on other airlines, they have to connect to major hubs (IAH, DFW, ATL, ORD, etc). They have a few direct international flights.

[summersm343]

Call me biased but...

Schuylkill Yards in Philadelphia is a NO BRAINER for Amazon...

This is basically 7M+ square feet ready to go. What other city can say this?

What other location in the country is ready for this much developable space directly next to two top tier schools in UPenn and Drexel, as well as a large research campus in the University City Science Center, and directly next to the downtown of a major city and major metropolitan region? This is also directly next to highway access in I-76 and 676 to I-95, and 30th Street Station with subway, regional rail and AMTRAK access... which will take you to the Philadelphia International Airport, the Newark International Airport, New York City, DC, Boston, Baltimore, etc. etc....

This site not only connects you to Philadelphia and it's region, but the entire Northeastern United States and beyond. Amazon would have easy access to almost every top tier school along the entire Eastern seaboard for an endless talent pool. That's not even mentioning the sheer amount of Universities nearby in UPenn, Drexel, USciences, Temple, Villanova, St. Joe's, UofDel, Princeton, Rutgers, Penn State, etc. etc.

#AmazonYardsPhiladelphia



http://schuylkillyards.com/gallery.php

[jubguy3]

Originally Posted by austlar1

Plenty of domestic non stop flights to all major cities, but only two trans atlantic flights, one to London and one to Frankfurt. Plans afoot for flights to Tokyo and/or Seoul, but so far not in place.

What do you mean by "plans afoot"? SLC is a Delta hub and the KE joint venture certainly counts as "plans" for a flight to Seoul but nobody knows if they are in active negotiations. Is an airline actually looking at Austin or is this an empty statement?

[CherryCreek]

Originally Posted by James Bond Agent 007

Fuse? You mean frame.

So far, both you and BNK think their city has been in discussions behind the scenes. And the reality is, either both, or neither, has really been in discussions behind the scenes.

I have no basis to think "my city" has been in discussions behind the scene. I was merely speculating as to whether Amazon had "exploratory" discussions with any city/state. I take them at their word, they are looking for proposals and this is a real competition, not a done deal. It does make sense to me however that in formulating the RFP they would have already done a lot of diligence.

[IrishIllini]

Originally Posted by Steely Dan

in general, i'm not one to back bnk's wacky theories, but CNBC has reported that rahm emmanuel has already had several conversations with bezos about this new HQ location.

this does NOT mean that chicago is the favorite, or a shoe-in, or anything silly like that, it just means that chicago will aggressively pursue this (no shock there, rahm could really use a big win right now).



source: https://www.cnbc.com/2017/09/07/new-...kes-sense.html

I do think Chicago has a great chance at landing this HQ, but I'm not betting the house on it. We do check all of Amazon's boxes and the talent they seek is undeniably more readily available in Chicago than Dallas, Austin, or Atlanta. 50,000 jobs could be filled fairly quickly in Chicago. I wonder how many Seattle HQ employees will be transferred to the new office, wherever it should go.

[Northern Light]

No inside info here, but I do think Toronto is being under estimated.

Region of 8,000,000 or so

Very large tech centre, world leader in A.I.

Robust public transit

Global Airport

Has millions of sq ft of office supply under construction and one site in the pipe line large enough to fill Amazon's needs w/space leftover (Unilever site).

It also carries the advantages of easier access for immigrants both permanent and temporary.

Lower corporate taxes

One very notable add-on to the above, Canada doesn't tax repatriated profits if they were taxed in the other country.

Canada also just signed an Free Trade deal w/the E.U. that includes labour mobility provisions.

***

The real knock would be optics in the U.S. and what I expect would less of a tax incentive package here.

[austlar1]

Originally Posted by jubguy3

What do you mean by "plans afoot"? SLC is a Delta hub and the KE joint venture certainly counts as "plans" for a flight to Seoul but nobody knows if they are in active negotiations. Is an airline actually looking at Austin or is this an empty statement?

Just lots of speculation (or wishful thinking) about flights to Asia. Samsung has huge presence here in Austin, and there is a lot of business travel to other Asian cities by Austin business travelers. There is grumbling on Austin SSP pages about the lack of a direct flight to an Asian hub. The speculation, such as it is, is about a Japanese carrier.

In response to suggestions that Austin lacks many non stop flights to major US cities, I put together the following list: 11 non stops daily to LA area airports:4 to San Diego; 6 to SFO and 3 to San Jose; 5 to Las Vegas; 8 to Phoenix; 2 to SLC; 10 to Denver:1 to ABQ; 4 to MPS; 10 to Chicago, most of them to ORD; 3 to Detroit; 3 to Boston; 11 to NYC airports; 5 to DCA or Dulles; 2 to BWI; 4 to Charlotte; 1 to Raleigh/Durham; 2 to Nashville; 12 to Atlanta; 2 to Miami; 3 to Fort Lauderdale; 2 to Orlando: 2 to New Orleans; 1 to St. Louis; 22 to either DFW or DAL; and 15 to Intercontinental or Hobby in Houston. Also many flights to smaller cities in the region. Southwest has about 38% of the Austin passenger market. AA, UA, and DL about half that amount each. Surprisingly few flights to Mexico. There is a daily British Airways to London and a Condor flight to Frankfurt. The latter seems to cater to vacation travellers mostly. I think that another low cost carrier (Norwegian Air?) may have announced plans for a flight to Gatwick, but I am very fuzzy on that one. Not bad for an airport that is not a hub operation. Passenger growth is rapid at Austin Bergstrom, up from less than 8 million a decade ago to well over 12 million today.

[C.]

Amazon has succeeded in creating the ultimate city vs. city debate in SSP.