Amazon HQ2

WHO, WHAT, WHERE...

Amazon HQ2

It's no secret that Amazon released a Request for Proposals last week to determine the location of their new headquarters - HQ2.  Every major City is jumping at the opportunity to have a company of this magnitude enter their market.  The rough estimation is that the capital investment for the new HQ will be over $5 billion over 15-17 years of the project, while creating as many as fifty thousand (50,000) new full-time jobs with an average annual compensation exceeding one hundred thousand dollars ($100,000) per employee.  Wow.

The Amazon HQ2 RFP outlined the top factors they will be considering for their second headquarters, in no particular order.  Taken directly from this document, the list is as follows:

Key Preferences and Decision Drivers

1. Site/Building – As described herein, finding suitable buildings/sites is of paramount importance. Amazon HQ2 is a transformational Project, and we must ensure we have the best real estate options available whether this be a redevelopment opportunity, a partnership with the state, province, local government, or new buildings. All options are under consideration.
2. Capital and Operating Costs – A stable and business-friendly environment and tax structure will be high-priority considerations for the Project. Incentives offered by the state/province and local communities to offset initial capital outlay and ongoing operational costs will be significant factors in the decision-making process.
3. Incentives – Identify incentive programs available for the Project at the state/province and local levels. 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. The initial cost and ongoing cost of doing business are critical decision drivers.
4. Labor Force – The Project includes significant employment requirements at the threshold compensation levels described herein and with corresponding educational attainment of the available workforce. The Project must be sufficiently close to a significant population center, such that it can fill the 50,000 estimated jobs that will be required over multiple years. A highly educated labor pool is critical and a strong university system is required.
5. Logistics – Personnel travel and logistics needs, both from population centers to the Project site, as well as between company facilities, are critically important. As such, travel time to a major highway corridor and arterial roadway capacity potential are key factors. The highway corridors must provide direct access to significant population centers with eligible employment pools. Travel time to an international airport with daily direct flights to Seattle, New York, San Francisco/Bay Area, and Washington, D.C. is also an important consideration.
6. Time to Operations – The Project requires an expeditious timetable for the location decision and the commencement of construction. Given this, sites with the requisite access, utility infrastructure, and zoning are critical. Please outline the permitting process and estimated timetable to initiate Phase I of our operations.
7. Cultural Community Fit – 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. A stable and consistent business climate is important to Amazon. Please demonstrate characteristics of this in your response. We encourage testimonials from other large companies.
8. Community/Quality of Life – The Project requires a significant number of employees. We want to invest in a community where our employees will enjoy living, recreational opportunities, educational opportunities, and an overall high quality of life. Tell us what is unique about your community.

As you can imagine, there has been endless speculation as to where this second headquarters will be located, so which Cities have become Top Contenders?

Toronto, Boston, Washington, Atlanta, Dallas, Pittsburgh, San Jose, Austin and Denver are some of the recurring names based on varying factors, however every metropolitan over a million across North America (including Canada and Mexico) has a shot at the big prize .  Of course our Albertan mayors have said Edmonton and Calgary will take a run at it.

Everyone's got an opinion, New York Times wrote an article over the weekend titled, 'Dear Amazon, We Picked Your New Headquarters For You' that broke down the top American cities, requirement by requirement, and they're one of many to throw out a speculation!

(E.g. Venturebeat, Money.CNN, Brookings, etc.)

I'm constantly blown away with how influential Amazon has become in our commerce world to create this mass frenzy among every large city in North America!  It's nothing short of truly impressive.  Even Edmonton is taking a run at the big prize, as I discuss in the video clip below.