Amazon Receives 238 Proposals from 43 States Plus Mexico and Canada for Second Headquarters

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.
  • Tuscon sent a 21-foot tall cactus to the company's current location in Seattle.
  • 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.

Mike "Mish" Shedlock

"Amazon's top demand is a tax break. Everyone is happy to oblige...."

"Amazon's top demand is a tax break. Everyone is happy to oblige...."

... to join the race to the bottom. This is how corporations now are paying 25 cents for every dollar in taxes that people pay, compared to $1.50 for every dollar a generation ago.

One can't help but wonder if they have ever done the calculations on the growth stimulant provided by giving EVERY business at big fat tax break. Instead they will push all the tax liability onto existing business while allowing large businesses big breaks if not outright providing them land to locate to their area. After forty years of business I'm BEGINNING to feel a bit slighted.

I simply notified my city of the contest. But my advice would be to propose: the tax break will be for ALL business in the city... we will set the total taxes equal to the current, and the addition of Amazon will drive the taxes down for everyone. But we will maintain the rule of law.

It might not win, put my city wouldn't win anyways. And MAYBE, being unique, it WOULD win.

The only thing better than that, that I can think of, would to be to make all taxes be property taxes, whereby the person or business declares the item, the value, and pays a flat rate on it, prorated by time of ownership over one year. Anything undeclared is not protected by law from theft. That way, Amazon could ZERO their taxes, by handling their own security.

I heard this weekend it is going to be in NC. Either near Raleigh or Charlotte.

Tax breaks for corporations that pay warehouse wages. What are they thinking? I'm thinking recall these idiots.

My guess is the DC area. There's no better ROI than swaying politicians. Plus Bezos just bought a mansion in DC and owns the WaPo.

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