Amazon receives 238 proposals from 43 states plus Mexico and Canada for second headquarters

By Mike “Mish” Shedlock

For all the bashing of Amazon for its alleged stealing of business of mom and pop stores, the company received 238 proposals from 43 states, plus 3 Mexican states and 6 provinces in Canada for a second headquarters. Amazon’s top demand is a tax break. Everyone is happy to oblige.

Tax breaks for Amazon are on the way as the company received 238 proposals cities and regions in the United States, Canada, and Mexico hoping to snare the company’s second headquarters.

Promise of Jobs

The online giant promises to bring 50,000 new jobs and spend more than $5 billion on construction to man the facility.

Location Requirements

  1. Tax breaks and grants will be the deciding factor.
  2. The location must be near a metropolitan area with more than a million people to be able to attract top technical talent.
  3. The location must be within 45 minutes of an international airport.
  4. The location must have direct access to mass transit.
  5. The location must be able to expand to as large as 8 million square feet in the next decade.

Proposals and Gimmicks

  • Detroit said it’s location near Canada made it unique.
  • Missouri touted a corridor between Kansas City and St. Louis.
  • Tucson sent a 21-foot tall cactus to the company’s current location in Seattle. (Who dreamed up that idea? Saguaro cactus don’t grow in that climate. Plus, it’s a protected species! – Ed.)
  • New York lit up the Empire State Building with an Amazon smile.

Top Contenders

Top Contenders

Recode analyzes Top Contenders for the facility.

Building costs in places like Washington D.C., New York City, and San Francisco are through the roof and land space is non-existent. One would have to be nuts to locate in Illinois or California but stranger things have happened.

Recode cites building costs of $595 dollars per square foot in D.C., $550 in Boston, and $486 in Austin.

Svenja Gudell, chief economist at real estate data firm Zillow, thinks Austin, Denver, and Chicago are the top contenders.

A check of their numbers shows Kansas City has low building costs and airport nearness. Salt Lake City also has low building costs and airport nearness. Columbus, Ohio is cheaper yet. Kansas City is nice central location as well. But will executives finds those areas attractive?

Runoff Coming?

Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont and Wyoming did not send proposals.

No one has mentioned specific tax break offers.

I suspect Amazon will mention a handful of final contenders to see who will sweeten the pot.

The winner will be happy. The losers, all of which offered tax breaks will complain about Amazon getting tax breaks.

 

Article appeared at his blog.

 

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