Ottawa's bid for Amazon HQ2

[BlueJay]

Originally Posted by ars

Not surprised that Ottawa didn't make it, it looks like population was a big factor in Amazon's shortlist, the CSAs of all the cities chosen are much larger than Ottawa.

I don't think Toronto, despite making the shortlist, really has any chance either, especially not with Trump's recent tax cuts.

I also think that Amazon will keep HQ2 in the USA with all of the tax cut incentives and the new tax reform in place, but a small gut feeling says don't count TO out yet.

[1overcosc]

Originally Posted by ars

Not surprised that Ottawa didn't make it, it looks like population was a big factor in Amazon's shortlist, the CSAs of all the cities chosen are much larger than Ottawa.

I don't think Toronto, despite making the shortlist, really has any chance either, especially not with Trump's recent tax cuts.

Trump's tax cuts aren't really relevant to Amazon, because as a company that runs on thin margins it doesn't pay much corporate tax anyway. And tech companies in general pay very little corporate tax. Most of the companies that got a real meaningful boost from the Trump cuts are retailers and finance companies.

[BlueJay]

Originally Posted by 1overcosc

Trump's tax cuts aren't really relevant to Amazon, because as a company that runs on thin margins it doesn't pay much corporate tax anyway. And tech companies in general pay very little corporate tax. Most of the companies that got a real meaningful boost from the Trump cuts are retailers and finance companies.

Not so. The tax plan saves Amazon a significant amount nearing in the amount of 500 million. Plus the spinoffs of the consumers in the middle class that will have a small but positive disposable income increase.

But I still think TO has a chance.

[rocketphish]

'Goodness' came to capital region from failed Amazon HQ2 bid, Invest Ottawa says

Amazon on Thursday announced 20 North American communities it's considering for a second headquarters. Ottawa-Gatineau didn't make the cut, but there was a positive to the bid process, says the managing director of investment at Invest Ottawa.

Jon Willing, Ottawa Citizen
Published on: January 18, 2018 | Last Updated: January 18, 2018 5:47 PM EST

Ottawa-Gatineau’s failed bid to attract a full-blown Amazon headquarters brought some “goodness” to the capital region, according to the managing director of investment at Invest Ottawa.

“This is an exercise that brought the community together,” Blair Patacairk said. “It actually beefed up the toolkit that we had.”

Amazon on Thursday announced 20 North American communities it’s considering for a second headquarters, what it calls its Amazon HQ2. The company, which has a headquarters in Seattle, received 238 proposals. Toronto is the only Canadian city advancing to the next phase of the HQ2 competition.

A $5-billion economic investment was too attractive for municipalities to simply ignore. Ottawa and Gatineau hooked up and enthusiastically entered the competition.

Amazon didn’t provide reasons why cities didn’t make the cut. A spokesperson said the company wasn’t sharing anything more.

Patacairk said the Amazon contest brought the cities of Ottawa and Gatineau together, working closer than ever before.

“When this came out of the blue, and it was a six-page version of a (request for proposals), it was full-on, gas on the pedal, let’s get out of the blocks.” Patacairk said, underscoring the unique bid process.

He estimated Invest Ottawa’s bid cost at $100,000, including in-kind services.

Invest Ottawa, a city-funded agency, already had local intel on much of the information Amazon requested.

Even though the Amazon competition was a huge surprise, Invest Ottawa already had the experience in place to create a solid proposal, Patacairk said. Now it has more market research for other business pitches.

“We are rinsing and repeating,” he said. “We’re putting it in our toolkit and taking it to the world, and going out and saying why we think people should come to Ottawa.”

(Patacairk also pointed out something not widely known: Invest Ottawa already succeeded in bringing Amazon to Ottawa in recent years, just on a much smaller scale. Amazon has an office in Kanata where work is done on its Alexa voice interaction technology.)

A joint written statement by Ottawa Mayor Jim Watson and Gatineau Mayor Maxime Pedneaud-Jobin said they’re disappointed the bid didn’t make the cut but they’re proud of the cities’ “competitive bid that showcased the best that the National Capital Region has to offer.”

Watson even visited the Amazon campus while in Seattle last year.

Watson and Pedneaud-Jobin said the bid will become a template for attracting other investments.

They also predicted that if Toronto somehow lands the HQ2, there would be economic spinoffs for Ottawa-Gatineau.

Asked to assess Toronto’s chances of winning, Patacairk said it’s telling that Toronto is on the only Canadian city on a list of American communities.

“A lot of them are probably putting a lot money on the table,” Patacairk said. “If it comes down to incentives, it’s going to be a challenge.”

Communities competing for Amazon’s second headquarters: Toronto, Atlanta, Austin, Texas, Boston, Chicago, Columbus, Dallas, Denver, Indianapolis, Los Angeles, Miami, Montgomery County, Md., Nashville, Newark, N.J., New York City, Northern Virginia, Va., Philadelphia, Pittsburgh, Raleigh, N.C., Washington, D.C.

jwilling@postmedia.com
twitter.com/JonathanWilling

http://ottawacitizen.com/news/local-...st-ottawa-says

[Truenorth00]

So a split between DC and New York.

[rocketphish]

Amazon says it will not build a headquarters in New York after mounting opposition

Lauren Feiner | @lauren_feiner
Published 56 Mins Ago Updated Moments Ago

Amazon will not build a headquarters in New York City following mounting opposition, the company said in a statement Thursday.

Amazon said it does not have plans to reopen the search for a replacement location. The company will continue to build its planned headquarters in Virginia and its other planned location in Nashville.

Last week, The Washington Post first reported that Amazon executives were considering backing out of its plans to build an office in the Long Island City neighborhood of Queens.

"While polls show that 70 percent of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City," Amazon said in the statement. The company said it will continue to grow the teams it already has in Staten Island, Brooklyn and Manhattan.

Amazon shares barely moved after Amazon said it was scrapping its plans to build a new headquarters in New York.

New York Governor Andrew Cuomo had warned at a news conference last week following the Washington Post report that local and regional leaders who opposed Amazon's headquarters would have to answer to voters if Amazon did not ultimately bring its 25,000 jobs to the state.

"You want to diversify your economy? You don't want to just be Wall Street and finance?" Cuomo asked at the conference last week. "We need Amazon."

Local and state leaders had voiced significant opposition after New York City and state had offered the company performance-based incentives amounting to nearly $3 billion. These leaders were not privy to the details of the deal until after Amazon had made its decision. Cuomo said the deal would still bring in $27 billion in revenue in exchange for the incentive package and called the opposition to Amazon "governmental malpractice."

Amazon executives had made attempts to quell local fears about its move into the city. In December, two executives attended a hearing in front of members of New York's City Council where lawmakers addressed questions about how the company would ensure it hired a diverse workforce from the Queens community it was moving into, among other concerns. Council members expressed anger over the closed door deal and accused Amazon's actions of proving it was a bad neighbor.

"I see this as Walmart 2.0 and we're going to continue to fight because we object to the process that has brought us to [this] point," said council member Inez Barron at the December hearing. "You're in for a battle. You're in for a fight."

State Sen. Michael Gianaris, another vocal critic of the Amazon deal who was selected last week to serve on the state board that would have had final approval on the headquarters, said he would not mind to see the company abandon its plans. Asked on CNBC's Squawk Box on Wednesday if he would consider it a victory if Amazon backed out of its plan to build its headquarters in New York, Gianaris said, "Under these terms of the deal that's before us, absolutely."

Local officials have also expressed concerns over Amazon's reported ties to the Immigration and Customs Enforcement agency through its facial recognition technology. In an interview with CNBC's "Squawk on the Street" Monday, City Councilman Jimmy Van Bramer said, "Obviously we're a sanctuary city. The mayor and all of us have declared that we want to be a safe haven for all immigrants, including the undocumented... Amazon refuses to budge on that issue."

Some Amazon employees had bought homes in the Long Island City area of Queens even before the company had announced its plans to open a headquarters there, The Wall Street Journal reported in November.

In response to Amazon's announcement, the Retail, Wholesale and Department Store Union released a statement condemning the company's decision to back out of New York City.

"Rather than addressing the legitimate concerns that have been raised by many New Yorkers Amazon says you do it our way or not at all, we will not even consider the concerns of New Yorkers – that's not what a responsible business would do," an RWDSU spokesperson said in a statement.

CNBC has reached out to Cuomo and New York City Mayor Bill de Blasio for comment.

Here is the full statement:

After much thought and deliberation, we've decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens. For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term. While polls show that 70% of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City.

We are disappointed to have reached this conclusion—we love New York, its incomparable dynamism, people, and culture—and particularly the community of Long Island City, where we have gotten to know so many optimistic, forward-leaning community leaders, small business owners, and residents. There are currently over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams.

We are deeply grateful to Governor Cuomo, Mayor de Blasio, and their staffs, who so enthusiastically and graciously invited us to build in New York City and supported us during the process. Governor Cuomo and Mayor de Blasio have worked tirelessly on behalf of New Yorkers to encourage local investment and job creation, and we can't speak positively enough about all their efforts. The steadfast commitment and dedication that these leaders have demonstrated to the communities they represent inspired us from the very beginning and is one of the big reasons our decision was so difficult.

We do not intend to reopen the HQ2 search at this time. We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the U.S. and Canada.

Thank you again to Governor Cuomo, Mayor de Blasio, and the many other community leaders and residents who welcomed our plans and supported us along the way. We hope to have future chances to collaborate as we continue to build our presence in New York over time.

https://www.cnbc.com/2019/02/14/amaz...s-reports.html