4 min

Tt post sep 8, 2017

Sep 7, 2017 - Detroit Free Press - Could Detroit make a pitch for Amazon headquarters? City is 'carefully evaluating'

Could? Carefully?

Some key factors for a site selection:

  • proximity to a major airport
  • a friendly regulatory environment
  • taxes
  • livability
  • sustainable and affordable energy
  • advanced mass transit
  • readiness for autonomous vehicles
Amazon is also willing to consider greenfield sites, infill sites, existing buildings, or a combination for the project, according to the RFP.

Amazon also said that tax incentives offered by state or local communities to offset costs will be significant factors in the decision.

... Amazon would probably seek a region that's "investing in education, investing in workforce, investing for the long term."

Officials in many areas, including Chicago, Minneapolis, Nashville, Cincinnati and Indianapolis have already signaled plans to pursue the project.


Excerpts from an mlive.com story

So what does Amazon want for this HQ?

Here are 7 requirements:

1. Tax incentives

Any entity responding to the RFP needs to be ready to attach some cash.

"Outline the type of incentive (i.e. land, site preparation, tax credits/exemptions, relocation grants, workforce grants, utility incentives/grants, permitting, and fee reductions) and the amount," it says. "The initial cost and ongoing cost of doing business are critical decision drivers."

That's not a surprise. Amazon - which posted sales of $136 billion in 2016 - is known across the country for seeking tax breaks. That follows years of fighting to keep online sales tax-free.

"Amazon's tax avoidance strategy has never gone away," said Thomas Cafcas, formerly of Good Jobs First in Washington, D.C., during an interview this summer. "Now, instead of sales tax, it’s other kinds of taxes."

Amazon has hired "an arsenal of lobbyists, lawyers and accountants ... to help them negotiate and manage economic development tax breaks," Cafcas said.

2. Proximity to a population center of 1 million or more people.

This is where metro areas come into play, more so [than] individual cities in Michigan. Detroit is our state's largest city, with about 672,000 residents. But Greater Detroit - including Ann Arbor and the counties of Wayne, Oakland and Macomb - totals more than 5 million people.

3. Access to key transportation.

This includes not more than 2 miles from a key highway and less than 45 minutes from an international airport. Mass transit must be available at the site.

"(D)aily direct flights to Seattle, New York, San Francisco/Bay Area, and Washington, D.C. is also an important consideration."

Detroit Metropolitan Airport has all four.

4. Quality of life.

This is my phrasing, not Amazon's. But this economic development 'catch phrase' seems to convey some of the intangibles that Amazon seeks for HQ2. Consider these statements from the RFP about what it wants:

  • Urban or suburban locations with the potential to attract and retain strong technical talent.
  • Communities that think big and creatively when considering locations and real estate options.
  • Be sure to include opportunities to cultivate local culture and creativity into the Amazon HQ2 site.

More from Amazon: "The Project requires a compatible cultural and community environment for its long-term success. This includes the presence and support of a diverse population, excellent institutions of higher education, local government structure and elected officials eager and willing to work with the company, among other attributes. "

It also wants to know housing information, including prices; as well as crime data and recreation opportunities.

5. A big, smart labor pool. And a university.

"A highly educated labor pool is critical and a strong university system is required."

A little more about the jobs:

These are not the low-skilled 'sortation center' jobs paying $12.75 per hour that are spreading across the country. According to Amazon, the jobs will likely be broken down into the following categories: executive/management, engineering with a preference for software development engineers (SDE), legal, accounting, and administrative.

6. A stable business climate.

"Please provide labor and wage rate information in the general job categories described. Please provide relevant labor pool information and your ability to attract talent regionally."

7. Computer scientists.

Amazon is a tech company, even as it moves into bricks-and-mortar retail. It's HQ2 hiring needs involve tech skills.

It wants "a list of universities and community colleges with relevant degrees and the number of students graduating with those degrees over the last three years. Additionally, include information on your local/regional K-12 education programs related to computer science."

The end result will be a big campus - think Ford in Dearborn - and it's not expecting a specific 'look' as it goes into the process. It's looking for creative options that will have sustainable features and great connectivity.

From JR's : articles
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