where should amazon have built headquaters?
Amazon HQ2 is a planned corporate headquarters in Crystal City,
Arlington, Virginia for technology company Amazon. HQ2 was
announced in September 2017, and is an expansion of the existing
headquarters in Seattle, Washington. But Amazon announced that HQ2
would be split into two locations, with 25,000 workers at each:
National Landing, a future neighborhood including Crystal City in
Arlington, Virginia, and Long Island City in Queens, New York
City.
They chose NYC and Alexandria Va, in your opinion is
these good choices? - YES
Amazon is looking for a location with strong local and regional
talent—particularly in software development and related fields—to
continue hiring and innovating on behalf of our customers.
These two locations will allow Amazon to attract world-class
talent that will help to continue inventing for customers for years
to come. Amazon team did a great job selecting these sites, and
they look forward to becoming an even bigger part of these
communities.
What are positive and negatives of each
location?
- As part of Amazon’s new headquarters, New York and Long Island
City will benefit from more than 25,000 full-time high-paying jobs;
approximately $2.5 billion in Amazon investment; 4 million square
feet of energy-efficient office space with an opportunity to expand
to 8 million square feet; and an estimated incremental tax revenue
of more than $10 billion over the next 20 years as a result of
Amazon’s investment and job creation.
- Amazon will receive performance-based direct incentives of
$1.525 billion based on the company creating 25,000 jobs in Long
Island City.
- This includes a refundable tax credit through New York State’s
Excelsior Program of up to $1.2 billion calculated as a percentage
of the salaries Amazon expects to pay employees over the next 10
years, which equates to $48,000 per job for 25,000 jobs with an
average wage of over $150,000; and a cash grant from Empire State
Development of $325 million based on the square footage of
buildings occupied in the next 10 years.
- Amazon will receive these incentives over the next decade based
on the incremental jobs it creates each year and as it reaches
building occupancy targets.
- Amazon as a part of providing funding through a Payment In Lieu
Of Tax (PILOT) program has agreed to donate space on its campus for
a tech startup incubator and for use by artists and industrial
businesses, and Amazon will donate a site for a new primary or
intermediary public school. The company will also invest in
infrastructure improvements and new green spaces.
- Virginia is the Top State for Business in 2019, and it offers
the best workforce in the nation, according to the CNBC survey,
with the nation’s largest concentration of science, technology,
engineering and math employees.
- The state also ranks No. 1 for education, tied with
Massachusetts.
- Long Island City has experienced a dramatic rise in home prices
over the years that could be exacerbated by Amazon.
- People of Alexandria Va need commitment from Amazon and state
and local officials to provide safeguards against gentrification,
homelessness, inequality, traffic congestion and overcrowded
schools. Since Amazon has a history of anti-competitive and
monopolistic behavior, making it all the more troubling that state
officials are willing to subsidize this type of work
environment.
Where should Amazon have built their headquarters &
Why?
- The state of Texas is also a strong contender for
HQ2, which means Dallas and Austin are high up on the list
of preferred cities. With Texas consistently touted as the nation’s
best state to do business, there’s a strong possibility that Austin
and Dallas are being weighed with equal consideration as D.C.
- The reasons would certainly be different. In the case of Texas,
the cost of living; business-friendly tax and regulatory
environment; availability of skilled tech talent; major educational
and research and development institutions; air and highway
infrastructure; logistics and distribution assets; and economic
growth are all arguably stronger than in our nation’s capital.
- There are some key differences between Austin and Dallas.
Austin is an easier destination to recruit skilled employees. With
HQ2 expected to ramp up to 50,000 people, no city can
single-handedly absorb that much talent. The winning city will have
to be an attractive place to live with a great quality of life, and
Austin has quality of life in spades.
- Dallas is the more affordable option within Texas and has a
reputation as the most business-friendly city in the state. It also
serves as the corporate headquarters for industry giants like Exxon
Mobil, AT&T and American Airlines. With 7.4 million residents
in the Dallas-Fort Worth metro, fourth biggest in the U.S., it has
the capacity to accommodate large-scale employers.
Conclusion:
Amazon wants to create their own city rather than locate its new
HQ2 in the middle of a major metropolitan area. But it will still
need to be in close proximity to a major metro for obvious
reasons—airport, workforce, plus internet, transportation and
economic infrastructure. That’s why they didn’t choose the state of
Texas.
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