Columbus (Surprisingly?) Makes The First Cut

I’ve written before about Amazon’s announcement to build a second headquarters facility somewhere in North America, and the efforts of cities like Columbus and San Antonio to attract the river of Amazon cash that would flow with the building of the giant company’s second HQ.  In all, Amazon received 238 proposals from cities throughout the United States, Canada, and Mexico that wanted to be considered in the selection process.

downtown-columbusYesterday, Amazon announced the list of the locations that will be 20 finalists, and lo and behold, Columbus made the list.  San Antonio, alas, did not.

According to the New York Times, the selection of Columbus (as well as Nashville) to be among the 20 finalists was a “surprise.”  The Times contrasted the Columbus “surprise” with cities that were “widely expected to make the cut,” like Boston, Denver, and Dallas, “hip centers like Miami and Austin, Tex.,” and Los Angeles and New York, as “centers of the tech industry.”  Some people in Columbus were irked by the “surprise” reactions, which seem to have a lot more to do with our city’s historic “cowtown” image rather than the reality of the modern Columbus.  One Columbus publication, 614, chastised the Times for reflecting “regional snobbery” to “take a big poo on our small victory.

According to the Times article:  “The process will now shift into a new phase, with Amazon representatives communicating more directly with the finalist cities as they prepare to select a winner later this year — and perhaps with cities being even more outspoken about why they should be chosen. Emissaries from Amazon are expected to visit the finalist locations in person.”

It will be nice to have the Amazon emissaries come to Columbus to see for themselves what our fair city has to offer and hear about why it would be an excellent choice for “HQ2,” with its anticipated $5 billion in investments and 50,000 high-paying jobs.  Who knows?  Maybe they’ll experience “surprise” when they stop by — or maybe they already know that Columbus is a great place, and that’s why we made the list of finalists in the first place.

Amazon Primed

Amazon — that massive, gushing river of deliveries that has fundamentally and forever changed the modern retail business — has announced that it is looking to build a second corporate headquarters somewhere in North America.  Cities like Columbus are jockeying for position and hoping that they get picked to host the Amazonians.

amazonLanding Amazon and its “HQ2” has got to be tempting for just about any city.  You can look at what Amazon has done for Seattle, where its corporate headquarters is located, and see what having Amazon might mean.  Amazon employs 40,000 people on its Seattle campus, it uses an enormous chunk of the available Seattle commercial real estate, and it calculates that, since 2010, it has contributed $38 billion to the Seattle economy.  The proposed “HQ2” is being presented as a similarly enticing proposition for job-hungry municipalities.  It is supposed to create as many as 50,000 jobs paying an average of $100,000, and also produce $5 billion in capital investment in the first 15 years.

As Seattle’s experience demonstrates, these don’t appear to be pie in the sky numbers.  Instead, Amazon has a proven track record of doing what every city wants from a leading corporate citizen — it creates good jobs that are filled by people who pay their taxes and it injects money into the area, which in turn creates jobs at the companies that provide the services that Amazon and its employees need.  Sure, there might be some drawbacks — Seattle real estate has become pretty expensive — but most cities would gladly accept that problem in order to tap into the Amazon river of tax revenue.

Amazon has released a list of detailed criteria that will be applied in its search for the right location for HQ2.  It’s looking for a metropolitan area of at least 1 million people, close to an international airport, with good roads, schools, and mass transit.  Oh, and it also needs up to 8 million square feet of office space.  And the modern world being what it is, we can expect Amazon to look for competing cities to produce packages of tax incentives, tax deferrals, and available development funds designed to entice Amazon as it makes its choice.

Columbus, where several Amazon data and distribution centers have located in recent years, is expected to compete for the prize, and Richard has written about San Antonio’s hope that it wins the crown.   We can expect the big boys, like Chicago and Dallas, to put in significant bids, and struggling cities like Detroit would no doubt see the Amazon initiative as a chance to really turn things around.  And don’t forget that Canada is part of North America; Toronto is said to be interested, too.  In all, about 50 metropolitan areas meet the 1 million population cut-off and would be in a position to compete for the prize.  Bids are due by October 19.

Hey, Amazon!  Come to Columbus!  You’d like it here!