What does it take to secure Amazon HQ2?All Articles
With a track record of over $600 million incentives awarded to Amazon since 2010, what incentives will the tech giant expect for HQ2? And what have short-listed North American locations offered for other major headquarters projects?
IncentivesMonitor has tracked $8.8 billion in incentives and recorded 184 active incentive programs for HQ projects in the US and Canada since January 2010. A starting point of potential incentives perhaps, for Amazon HQ2, a proposed corporate headquarters for online retailer Amazon.com in North America to supplement its existing Seattle headquarters.
Amazon announced the initiative, along with a request for proposals from governments and economic development organizations, in September 2017, attracting attention from more than 100 cities in Canada and the US. At full capacity, Amazon intends to employ 50,000 staff at HQ2 and invest $5 billion.
Amazon's request for proposals outline several core requirements:
- Metropolitan areas with more than one million people
- A stable and business-friendly environment
- 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
According to this criteria, The New York Times elected 14 potential locations where Amazon could bring its new North Amercan Headquarters. These are: Portland, San Francisco, San Jose, Denver, Dallas, Austin, Indianapolis, Atlanta, Miami, Charlotte, Raleigh, Washington, Boston and New York.
Based on this analysis, IncentivesMonitor created some highlights for existing HQ projects that have received incentives in these locations:
- IncentivesMonitor has tracked over $1 billion incentives for HQ Projects in these 15 locations since 2010
- Boston awarded the biggest incentive package: $146m to General Electric (GE) for a New HQ Project in 2016 with the creation of 800 new jobs
- San Francisco created 2650 new jobs in an Expansion HQ Project in return for state incentives
- Among the 14 locations, New York City had the biggest investment project, valued at $25 billion. State incentives were provided to BlackRock, Inc.
- Indianapolis has the highest number of HQ projects getting incentives. A total of 18,534 new jobs have been created as a result
- Portland has the highest average incentive value per job created. San Jose shows the lowest
- Austin, Charlotte and Raleigh are the cities have offered the highest incentives as a percentage of capital investment
Attracting Amazon probably won’t be inexpensive. The company wants cities bidding on the headquarters to outline the financial incentives they can definitely offer, as well as what they could potentially offer. These incentives could include assistance with land and site preparation, tax credits or exemptions, relocation grants, workforce grants, utility incentives and permits and fee reductions, among others.
IncentivesMonitor is tracking 130 incentive programs in the 11 states where the new Amazon HQ2 project could be projected.
To learn more about these programs and the companies receiving the incentives, contact us today.
WAVTEQ Webinar Tuesday 10th October 2pm EST
In the latest WAVTEQ webinar, discover what incentives Amazon and other industry giants receive and benchmark them against your location.
We will cover:
- How to identify the most attractive incentive programs
- Who the decision makers are within expanding companies?
- The most recent incentive deals for companies like Amazon and Microsoft and what other major Headquarters projects have received
Register your details here to attend the webinar.
All Articles Arrange a Demo of Incentives Monitor