* Tribune…
Chicago is chasing one of the country’s largest corporate headquarters deals in years, joining what is sure to be a fierce competition to land Amazon’s second headquarters.
The city plans to respond to Amazon’s request for proposals for the new 50,000-employee campus, said a spokesman for Mayor Rahm Emanuel.
Emanuel “has spoken with (Amazon founder and CEO Jeff) Bezos several times about picking Chicago,” said the spokesman, Grant Klinzman, in an email.
The Seattle-based e-commerce giant on Thursday said it plans to invest more than $5 billion to create a second headquarters in another North American city, with buildings potentially totaling more than 8 million square feet and creating 50,000 jobs over the next 10 to 15 years. The positions will pay an average of more than $100,000 annually, Amazon said.
* Crain’s…
Landing Amazon will require tremendous help from the state of Illinois, and the state only recently reauthorized its tax-incentive program for another five years. Like many other things, it took a back seat to the state’s two-year struggle to pass a budget.
The question is whether a state that has massive financial challenges—with billions in unpaid bills and a staggering pension deficit—can compete in what is likely to be an expensive bidding war. […]
In terms of the cost, Hickey and his peers say comparing this to Wisconsin’s $3 billion deal to land a Foxconn plant is a good place to start.
“I expect the bottom-line number would be at least what Foxconn got,” says Mark Sweeney, a principal at McCallum Sweeney Consulting in Greenville, S.C. “We can look at the big deals that have been done for big projects before, but there’s no telling how much. We’re in pretty rarefied air here with a headquarters operation and complex that would rival their headquarters in Seattle.”
Whew, that’s a lot of money.
* Seattle Times…
An eight-page request for proposal Amazon posted online Thursday said incentives offered to offset building and operating costs “will be significant factors in the decision-making process.”
* From the Good Jobs First organization, which warns against corporate subsidies…
“Taxpayers should watch their wallets as the trophy deal of the decade attracts politicians to a hyper-sophisticated tax-break auction. We fear that many states and localities will offer to grossly overspend to attract Amazon, even though the business basics–especially a metro area’s executive talent pool–will surely control the company’s decision.
“Public auctions for economic development deals, like those staged in the past by Boeing and Tesla, are the rare exception: nearly all are staged in secret. Based on what we know about Amazon, we expect this one to be a textbook show.
“As we documented last December, Amazon has since 2012 established an internal group with high expertise in seeking economic development incentives. And as we documented in July, it has recently advertised for additional senior staff in that department. Since our December 2016 study, Amazon has continued to receive subsidies valued at at least $115 million (not including four deals of undisclosed value), for a long-term total exceeding $1 billion.
“While we assumed Amazon would apply this expertise for more fulfillment and sortation centers, it now appears the company will also deploy it for a new headquarters deal. In its press release today, we already see the markings of an aggressive messaging strategy to justify massive subsidies.
“For context on other corporate headquarters tax-break packages, see this list of the largest such deals from our Subsidy Tracker database:
http://www.goodjobsfirst.org/sites/default/files/docs/pdfs/HQmegadeals.xlsx
- The Way I See It - Friday, Sep 8, 17 @ 10:31 am:
This kind of stuff just makes me ill. Amazon (and every other on-line retailer) is devastating retail which ends up destroying the ability of communities to get tax revenue through sales and property taxes and then has its hand out for taxpayer money. Socialize costs, privatize profits - it’s the new way of American business. Ugh.
- PJ - Friday, Sep 8, 17 @ 10:32 am:
What a world, where corporations can issue RFP’s and have entire cities groveling at their feet and raining subsidies on their heads.
This is one of things that happen when people who don’t really know anything about economics constantly harp on “growth”. They lavish these subsidies to say “look at all the business growth I oversaw”, ignoring that the same economic paradigms that love growth abhor subsidies. This never turns out well for taxpayers.
- Lucky Pierre - Friday, Sep 8, 17 @ 10:33 am:
Chicago has many advantages that make it one of the most livable, best big cities in the world.
Our negatives are self inflicted, political dysfunction that has been going on for decades and also a staggering pension debt at the state and local levels, that has also been accumulating for decades. Also terrible crime problem in some areas of the cities that generates nationwide headlines.
The highly educated, millennial tech workers a company like Amazon needs want to work in large cities like Chicago. Our cost of living is much lower that the other large cities they are considering.
The only way out of this mess is economic growth. This should be a bipartisan issue but too many Democrats don’t see it that way.
Wisconsin Democrats just ousted one of their leaders, Peter Barca who supported the Fox Conn deal because it would benefit his Kenosha district. Sadly too many Illinois Democrats feel the same way.
- Dan Johnson - Friday, Sep 8, 17 @ 10:36 am:
Imagine putting $3 billion into our transportation network and competing on our strength of public institutions that benefit everyone, including Amazon.
These special tax breaks should be illegal. It’s horrible public policy and puts us all in a prisoners dilemma.
- igotgotgotgotnotime - Friday, Sep 8, 17 @ 10:36 am:
I will gladly pay you Tuesday for 3 billion hamburgers today - Jeff (Wimpy) Bezos
- Sean - Friday, Sep 8, 17 @ 10:38 am:
This is a massive opportunity for Chicago and Illinois. 50k would make Amazon the largest employer in Chicago. In Seattle Amazon money has had a multiplier effect of 1.2. For every dollar amazon spends, $1.20 is created.
I hope the city and the state put their best foot forward and leave the bickering and pessimism for another day. I hope the naysayers at the Trib shut their yap for once. Chicago is a great city with alot of assets, we can easily make the final cut.
- TooManyJens - Friday, Sep 8, 17 @ 10:39 am:
==creating 50,000 jobs over the next 10 to 15 years. The positions will pay an average of more than $100,000 annually==
Wow, am I ever skeptical of those figures. At least, I wonder what the median pay is expected to be, as opposed to the average, which is probably going to be skewed by a few extremely high salaries.
- Montrose - Friday, Sep 8, 17 @ 10:40 am:
*Amazon (and every other on-line retailer) is devastating retail which ends up destroying the ability of communities to get tax revenue through sales and property taxes and then has its hand out for taxpayer money.*
I agree that far too much money is given to corporations to get them to locate their business. As far as online retailers being responsible for devastating bricks & mortar businesses - if consumers didn’t want the convenience of online shopping, places like Amazon wouldn’t thrive.
More broadly, I hope that if Chicago/Illinois does offer a massive package of incentives, there are sufficient claw backs built in to ensure we get the benefits we are looking for - good jobs and investment in the community.
- Rocky Rosi - Friday, Sep 8, 17 @ 10:40 am:
Chicago/Illinois is not business friendly. Why would Amazon want to build a second HQ in IL? Until IL can becomes business friendly like Texas, SC, OH, or Florida; these news bites are only wishful wants.
- Sheeesh - Friday, Sep 8, 17 @ 10:41 am:
This is not the first time I’ve read an article claiming EDGE has been reauthorized. It is not. The bipartisan bill (HB 162), approved by both chambers, remains in the House waiting to be sent to the governor.
- Henry Francis - Friday, Sep 8, 17 @ 10:42 am:
Nothing from our bidnessman governor on this? Or his pets at Intersect? Must be busy packing for their trip East. They are a laser focused group.
- Steve - Friday, Sep 8, 17 @ 10:43 am:
Chicago has many qualified people for those jobs. Illinois is a great central location. However, Illinois has many long term structural political and financial problems. Guessing where Amazon will go is anyone’s guess. If Amazon comes to Illinois, you can be sure that everyone else will be subsidizing(in a large way) this because that’s the only way Amazon would consider coming to Illinois. After all, Illinois doesn’t have low taxes and regulations which Amazon would be looking for. But, that doesn’t mean Illinois is out of the game if they give a super deal to Amazon would no one else gets…
- 360 Degree TurnAround - Friday, Sep 8, 17 @ 10:44 am:
Why look at Chicago? Have they ever been to beautiful Mount Vernon, just a short distance from Evansville, Indiana. Those fancy Amazon employees may like starbucks, but they have never given Casey’s coffee a chance.
- Gantt Chart - Friday, Sep 8, 17 @ 10:44 am:
My prediction is that they will select Indianapolis, Indiana.
- DuPage - Friday, Sep 8, 17 @ 10:45 am:
The old U.S. Steel property, the Sears HQ in Hoffman Estates,(I heard they may be up for sale soon), the I-88 corridor, the Elgin-Rockford corridor, Bloomington-Normal, etc., etc.. Illinois has many ideal locations, but the selection process will put them in a bidding war to see who will give the most tax breaks, free infrastructure improvements, and a safe environment.
- Dee Lay - Friday, Sep 8, 17 @ 10:46 am:
If the number is $3 Billion for 50K jobs.
That is the state subsidizing each job at $60K.
As stated earlier, Socialize costs, privatize profits.
- wordslinger - Friday, Sep 8, 17 @ 10:48 am:
Sean, as these things go, I imagine the final cut is already decided. Giveaways won’t make Amazon choose a place that can’t provide or attract the talent pool — or where the bosses dont want to live.
Once the finalists are leaked, the bidding war will begin.
And I have no doubt that politicians in those places will offer the sun and the moon.
- Peters Post - Friday, Sep 8, 17 @ 10:48 am:
International Airports and lots of land. I am thinking Peotone.
- cdog - Friday, Sep 8, 17 @ 10:52 am:
Illinois, as a blue state proponent of the $15/hr minimum wage, is a bad fit for this beast.
Bezos knows this. Makes you wonder what Rahm and Jeff have to talk about.
This article, written a few years ago, shines a light on how Bezos treats employees.
So Emmanuel wants to encourage the 50,000 brains that it takes to oppress all these workers?
Seems a little contradictory to me, and slightly unprincipled.
http://illinoistimes.com/article-14493-the-darker-side-of-amazon.com.html
- DuPage - Friday, Sep 8, 17 @ 10:52 am:
@- Gantt Chart - Friday, Sep 8, 17 @ 10:44 am:
==My prediction is that they will select Indianapolis, Indiana.==
That would be a good question of the day! My prediction is Iowa City.
- Generic Drone - Friday, Sep 8, 17 @ 10:55 am:
Another giant corporation whos profits have soared recently that has their hand out for more taxpayer money. What ever happened to pay your own way.
- Oswego Willy - Friday, Sep 8, 17 @ 10:56 am:
Perspective?
A Wisconsin legislator, after the $3 billion for Foxxcon seemed done, worried about the cost and thought about having IL roped into the cost, as she would benefit.
Hmm.
Sometimes the cost is a factor.
- Sean - Friday, Sep 8, 17 @ 10:58 am:
Those of you mentioning Indianapolis or SC or OH aren’t thinking about what 50k jobs means. That’s alot of jobs that puts great pressure on local housing and transportation systems. Smaller metros don’t have the talent base or the ability to absorb that quickly without massive changes in their housing prices or huge infrastructure problems.
They are looking for a city with mass transit, educated workforce, livability, intl connections, good infrastructure, and funnily enough a “progressive political environment and culture” according to their RFP.
Like I said, even with our horrible fiscal problems, you have to think that Chicago will be amongst the top 4 or 5 considered here.
- City Zen - Friday, Sep 8, 17 @ 11:02 am:
Does the RFP include the cost of the soda tax?
- cartelman01 - Friday, Sep 8, 17 @ 11:02 am:
Amazon will locate in Chicago for the same reason the Sinaloa cartel has a base of operations here. If you want to distribute anything throughout america, Chicago is the only place in midwest that has the infrastructure to do it and the central location.
- cdog - Friday, Sep 8, 17 @ 11:02 am:
Adding, Chicago is much too segregated with racial tensions and issues to be attractive at this level of competition.
Decades of under-employment of minorities, and other oppressive-positive and oppressive-negative actions, have made Chicago a case study in ways that corporations would not find too attractive.
- Ron - Friday, Sep 8, 17 @ 11:03 am:
Lol @ Indianapolis and Iowa. The criteria include access to great public transit, well connected international airport, strong universities and large educated workforces.
- Oswego Willy - Friday, Sep 8, 17 @ 11:05 am:
===cades of under-employment of minorities, and other oppressive-positive and oppressive-negative actions, have made Chicago a case study in ways that corporations would not find too attractive===
That… and a governor that bad-mouths his state all day, every day and twice on Sunday.
“Worst state in America” - Gov. Rauner.
You’d think a governor wouldn’t bad-mouth his/her state so much, but Illinois is stuck with Rauner.
- cdog - Friday, Sep 8, 17 @ 11:05 am:
My guess is Nashville.
- Present - Friday, Sep 8, 17 @ 11:06 am:
http://www.govtech.com/Illinois-CIO-Hardik-Bhatt-Prepared-to-Leave-for-Amazon.html
Hop link works. Might be a good sign.
- Anonymous - Friday, Sep 8, 17 @ 11:07 am:
Sears beats Mom and Pop shops; Walmart kills Sears; Amazon (Whole Foods) makes Walmart squeal…….imagine what the hell will beat Amazon.
- TopHatMonocle - Friday, Sep 8, 17 @ 11:11 am:
I read the RFP and it seems like Chicago is a great fit for what they’re looking for. Interesting that Emanuel has already discussed it with them considering it wasn’t public until yesterday. This is one of the very few times when the handout might be worth it. Much more impactful than a Foxconn factory. And whatever handout they get would cost less than the old estimate for hosting the 2016 Olympics. But the competition is going to be intense and it might end up being too rich in the end. Besides Chicago, Austin and Philadelphia came to mind.
- Uncle Kieth - Friday, Sep 8, 17 @ 11:11 am:
Correct me if I’m wrong.
Rauner has NOT signed the new EDGE bill
I know why
It takes away the corporate welfare retroactively to when his term started
Buried within the bill is the clause denying the ability to not remit the corporate withholding if the recipiant does not have any corporate liability
You see most large corporations pay very little if anything
Thus EDGE was so sexy because they can then not send in the withholding from employees income if they have no liability.
Thus these companies made out like bandits.
The new EDGE bill takes that away retroactively.
Finally revenue will flow back into our coffers
EDGE companies have not paid their fair share
Thats why Rauner won’t sign it
The hundreds of millions he prevented from coming in
The hundreds of millions in EDGE to cronies
Are worthless
That’s why we won’t get Amazon in Chicago
I mourn that we won’t get those jobs
But this may have cost All of us taxpayers much more
Let another state get strip mined
- Dublin - Friday, Sep 8, 17 @ 11:11 am:
CDog Nashville is a good sleeper pick. Nashville is growing by 100 people a day, no income tax in TN and has quick access to the entire south and east coasts. A few decent universities in Tennessee, too. Not sure there is a big enough Tech sector there, though.
- Anonymous - Friday, Sep 8, 17 @ 11:13 am:
Per Axios.com. Top contenders: Minneapolis, Chicago, Detroit, Phoenix, Denver.
- Michelle Flaherty - Friday, Sep 8, 17 @ 11:13 am:
Wanna bet Rauner uses TIF incentives in making the pitch?
- Mr B. - Friday, Sep 8, 17 @ 11:13 am:
Can’t lament that brick and mortar retail is dying. We need the new tax base and our population to grow again. Or at least not shrink. Rauner’s turnaround agenda was supposed to make Illinois competitive again. He totally failed, but with some blame to the entrenched other side. Bringing in this major industry will have other economic affects on our growth. Hope it happens.
- NoGifts - Friday, Sep 8, 17 @ 11:13 am:
I hear the Motorola campus in Harvard is still available.
- cdog - Friday, Sep 8, 17 @ 11:17 am:
Dublin, I did a little more reading.
WashPo (aka Bezos) has narrowed the list.
Editorially, Nashville makes it, Chicago does not.
“Meanwhile, cash-strapped locations such as Los Angeles and Chicago may not have room in their budgets for the kind of tax and regulatory incentives that would successfully entice Amazon and beat out other urban areas.”
https://www.washingtonpost.com/news/the-switch/wp/2017/09/08/this-map-shows-the-39-cities-likeliest-to-win-amazons-new-headquarters-contest/?utm_term=.f726fdcf60b4
- Junk the JRTC - Friday, Sep 8, 17 @ 11:18 am:
There is an enite city block available in Chicago are the intersection of Clark & Lake. Amazon could build a beautiful headquarters there, and build it into the L stop for easy public access.
- Lucky Pierre - Friday, Sep 8, 17 @ 11:20 am:
Yes Willy, Crains and others says the negatives to Chicago and our chances to win the deal are our huge unfunded pension liability, our political dysfunction, crime and underemployment of minorities that has been going on for decades.
Governor Rauner has been saying the same thing but it has fallen on deaf ears.
Yet, you pin the blame just on Governor Rauner daily and claim everything was fine until he was elected.
For a “Republican” you only seem outraged by Republican politicians or “Raunerites” and give the Democrats or “Madiganites” who have been ruling Chicago and Springfield for the past few decades a free pass.
I guess that is your idea of fairness
- Northside Dude - Friday, Sep 8, 17 @ 11:24 am:
Give Amazon the Thompson Center which is better located near public transportation than any other property in the United States. Also, let them build without zoning restrictions. The Willis tower has 4.5 million square feet. One giant building gets them halfway to 8 million square feet and they can put some back office workers out by their warehouses.
- wordslinger - Friday, Sep 8, 17 @ 11:34 am:
CDog, in your alternative universe comic book history, how do you account for the likes of mom-and-pop corporations like McDonalds, ADM, Beam Suntory, Boeing, etc. relocating their hqs to downtown Chicago?
And how did you get so tight with Jeff Bezos, that you can speak to his thinking?
- Small town taxpayer - Friday, Sep 8, 17 @ 11:36 am:
In 2011 Illinois granted Sears tax breaks with an estimated value of hundreds of millions of dollars. Before offering Amazon anything the state should review the Sears deal and its effectiveness to increase or even to retain existing jobs. Illinois needs more good paying job but will the tax breaks for Amazon actually deliver on their promises?
- Anon Downstate - Friday, Sep 8, 17 @ 11:37 am:
Amazon? NO.
Ask yourself a few questions:
Why would Amazon decide not to continue to expand in Washington State? That’s their home, and they are substantially a West Coast based logistics/data corporation, which means they are most likely to be coastal oriented.
California’s governing and regulatory environment introduces complications into their operating environments (logistics and information processing). Makes those states doubtful. And that applies to other states, also.
IMO, it’s going to come down to Upper Northwest (Washington State / Oregon), Lower Atlantic Coast (Carolinas & Georgia), or Texas.
Bet the final ‘incentive’ numbers are going to be in the $6-$8 billion dollar range.
Illinois (as a state) just isn’t going to be able to compete on Amazon. And in this case, I’m not sure that’s a bad thing. For example, if we really went all out on Amazon, why wouldn’t other substantial large corporations with corporate HQ’s already located in Illinois start to consider “Hey, what about us?”.
IMO, for a while we need to play ’small ball’ and try to build our entrepreneurial/small business base and forget about the Amazon type companies.
Ask yourself another question: “What if Amazon is currently at the high end of their marketplace?”
That’s a question that is currently being debated in the financial markets. Grand plans can easily change if the financial markets start going down.
Think: “Amazon”
- Oswego Willy - Friday, Sep 8, 17 @ 11:39 am:
===Crains and others says the negatives to Chicago and our chances to win the deal are our huge unfunded pension liability, our political dysfunction, crime and underemployment of minorities that has been going on for decades.===
Yeah… They ain’t the governor.
What a pathetic governor, bad-mouthing the state every day, calling Illinois the worst…
I can’t think of any other governors that despise their state like Bruce Rauner.
Like Bret Baier said best… as Bruce Rauner continues to bad-mouth Illinois at every turn it seems…
“What would be different in a second term”
Rauner has failed Illinois, and bad-mouthing Illinois, as her sitting governor is a choice Rauner loves to make.
So, you say “decades” and bloviate and blame…
… Today…
Today Rauner bad-mouths Illinois as her sitting gover or and that reflects on how poor of a governor Rauner is, and it definitely doesn’t help land Amazon when Rauner calls his state “the worst in America”
- Ducky LaMoore - Friday, Sep 8, 17 @ 11:40 am:
I am generally against this type of thing, paying a business to move here when other businesses can’t get the same treatment. That being said, Amazon is a giant. Amazon is the future. Man, I would hate to see Illinois miss out on 50,000 well-paying jobs because they can’t offer the incentives that other states will gladly provide.
- Roman - Friday, Sep 8, 17 @ 11:48 am:
@cdog
You say Chicago will be disqualified because of segregation and racial problems but then predict Nashville will be the pick?
Nashville is more segregated than Chicago — and just wait for the battles over their confederate monuments, including one for KKK founder Nathan Bedford Forrest, which was erected just 20 years ago.
I agree that Nashville is a good sleeper prediction, but if Amazon goes there instead of Chicago it will have nothing to do with race relations.
http://www.huffingtonpost.com/entry/the-9-most-segregated-cities-in-america_us_55df53e9e4b0e7117ba92d7f
http://www.huffingtonpost.com/entry/the-9-most-segregated-cities-in-america_us_55df53e9e4b0e7117ba92d7f
- St. Louis Bob - Friday, Sep 8, 17 @ 11:49 am:
I’d like to see Illinois work with Missouri to bring Amazon to St. Louis.
- cdog - Friday, Sep 8, 17 @ 11:56 am:
Word, I guess you’re saying Chicago will then be the pick?
Alrighty, then.
(I think I need to brush up on my knowledge of logical fallacies. There’s a lot going on with your take down of my comment. I’m smiling though, no offense taken; it keeps me on my toes
- wordslinger - Friday, Sep 8, 17 @ 12:16 pm:
No, CDog, I did not say that. It’s still up there in writing, you can read for yourself to confirm.
I was just pointing out that your theories have no basis in fact or reality.
- State Engineer - Friday, Sep 8, 17 @ 12:26 pm:
Seems to me Rauner desperately needs a win for his campaign. Betting he bids heavy.
- Grandson of Man - Friday, Sep 8, 17 @ 12:37 pm:
Amazon or not, Illinois does a very good job in corporate relocations and corporate real estate deals. The Chicago metro area does a great job, often coming in first.
Rauner praised the state when Site Selection magazine ranked us very high for corporate relocations very recently. But he trashes the state when he wants to create political ammunition to attack the opponents he hates.
While we should definitely try to get big headquarters, we should do what we can to not get caught up in big tax giveaways and other pro-corporate policies in which we are first expected to strip away rights and protections that ultimately drive down people’s standards of living. We don’t need to do this, as we can see with our high corporate relocation rankings.
One way to exit this, at least partially, is to have home-grown economic growth policies like marijuana legalization (no pun intended). In this way we can create jobs by unleashing an industry and not giving super-rich corporations massive tax benefits.
- DuPage - Friday, Sep 8, 17 @ 12:39 pm:
@- St. Louis Bob - Friday, Sep 8, 17 @ 11:49 am:
==I’d like to see Illinois work with Missouri to bring Amazon to St. Louis.==
You have a good idea there. They have that Mid-America airport available and lots of open land available at a good price. Also they are very near interstate 64 and several interstates that crisscross at St. Louis. It’s a relatively short commute from the St. Louis area. Even if they don’t select it for the headquarters, Amazon should consider it for their next mega-warehouse/distribution center.
- cdog - Friday, Sep 8, 17 @ 12:48 pm:
Word, you’re using a strawman by saying my reasoning is not factual. Please reconsider.
Amazon pays under $15, less than 40 hrs, non-union, and has folks on
- Mtwtsn - Friday, Sep 8, 17 @ 1:02 pm:
This is a huge opportunity that has the chance to finally turn Illinois and Chicago around … and all people on here can complain about is how mean Bezos is to his employees, how awful Amazon is for destroying retail, how terrible corporate tax breaks are. Whichever city Amazon chooses will be transformed by HQ2. If it’s Dallas or Atlanta, those metro areas will pass Chicago in population. HQ2 would be an enormous benefit to Chicago, so try and see the bigger picture here. Plus, if EDGE is used, it will be against future income taxes that wouldn’t have existed without the investment. So the state isn’t losing money, it’s just getting less than it would have if there were no breaks offered. Which, since all cities will offer them, are a must. We’ll still be better off giving Amazon tax breaks and getting HQ2 then holding our heads high and getting nothing at all.
- Ghost - Friday, Sep 8, 17 @ 1:16 pm:
It will have lotsmof employees who will pay income tax, property tax and sales tax. quit frankly you could give them a lot of tax breaks because of the economic gains from adding new regualr spenders and income tax payers
- DownstateKid - Friday, Sep 8, 17 @ 1:19 pm:
Chicago should win this. Rahm and Rauner could be an effective tandem luring Amazon here.
And the people complaining about Amazon: We have the highest unemployment rate in the Midwest and you’re gonna throw stones at a company willing to hire 50k at 100k salaries?
Get a grip.
- City Zen - Friday, Sep 8, 17 @ 1:21 pm:
====I’d like to see Illinois work with Missouri to bring Amazon to St. Louis.==
I’d like to see Illinois partner with neighboring states to create a regional powerhouse. On anything.
- Team Warwick - Friday, Sep 8, 17 @ 1:58 pm:
Amazon has to have a location other than the Cascadia Subduction Zone (west coast earthquake fault they expect to drop everybody into the ocean out there). They just did a major federal preparedness drill out there for that. So he needs to have a plan B. Thus Chicago.
- wordslinger - Friday, Sep 8, 17 @ 2:04 pm:
CDog, I'’ve reconsidered your reasoning. Your argument that Chicago is not competitive for corporate hq relocations is loony based on facts and history.
And why are you raising the minimum wage when Amazon says the hq jobs will average over $100K?
Either you’re pulling a gag or your reading comprehension skills and attention span are suspect.
- LevivotedforJudy - Friday, Sep 8, 17 @ 2:14 pm:
If this was a factory, Chicago wouldn’t have a shot. But this is a HQ project. Imagine how the $5 billion in salaries every year would impact Chicago (or the $6 to $7 billion annual economic impact). There’s a reason why companies like McDonald’s are setting up operations in the city. To get those employees and make them comfortable, things like O’Hare, the River North scene, the arts community, Divvy, Uber, University of Chicago, NU, pipelines to U of I, U of Michigan and Michigan State, professional support services will all factor in. For this, the City of Chicago should have a great shot at it. I’m thinking the new North Branch corridor, the JRTC or the old post office.
- Da Big Bad Wolf - Friday, Sep 8, 17 @ 2:19 pm:
==I’d love to see Illinois work with Missouri to bring Amazon to St. Louis.==
Me too. East St.Louis etc. needs this more than Chicago.
- Ducky LaMoore - Friday, Sep 8, 17 @ 3:13 pm:
=== ==I’d love to see Illinois work with Missouri to bring Amazon to St. Louis.==
Me too. East St.Louis etc. needs this more than Chicago.===
Finally. A good use for the Pruitt Igoe land. 1/2/s
- RNUG - Friday, Sep 8, 17 @ 3:22 pm:
It’s all about disaster recovery preparedness. You need a geographically stable location with low physical threats, good transportation and telecomm infrastructure, and skilled workers.
Only a few cities will be able to offer all that at world class levels:
Atlanta
Chicago
Dallas - Fort Worth
New York City
Second Tier Choices would be:
Austin
Columbus
Indianapolis
Little Rock
Nashville
Philadelphia
Pittsburg
Note: St Louis is not on the list due to the New Madrid fault. Tulsa I ruled out due to tornados.
So you have to think Chicago is on the short list.
- Ron - Friday, Sep 8, 17 @ 3:26 pm:
Atlanta is not world class. Have you been there? It’s a sleepy suburb.
- Ron - Friday, Sep 8, 17 @ 3:27 pm:
Atlanta’s mass transit is abysmal.
- RNUG - Friday, Sep 8, 17 @ 3:29 pm:
Ron, visit about once a year. Have relatives there. Lots of business talent in the area. And the execs would probably like Marrietta for their housing.
- RNUG - Friday, Sep 8, 17 @ 3:31 pm:
Doubt the workers would be taking mass transit.
- Ducky LaMoore - Friday, Sep 8, 17 @ 3:33 pm:
@RNUG
Boston?
- Ron - Friday, Sep 8, 17 @ 3:33 pm:
One of Amazon’s criteria is being near mass transit. It’s in the RFP.
- walker - Friday, Sep 8, 17 @ 4:06 pm:
CDog: Decision makers tell us their priorities, in various ways.
Corporate CEOs and relocation executives, in the US and worldwide, rate Chicago very high as a potential location. Often in the top 5 in the US, and in the top 12 cities worldwide, in their own trade and business publications. One magazine just rated Chicago as most attractive in the United States, (sorry I don’t have it at hand).
What happens for the giants, as Word says, is that they narrow it down to two or three very attractive cities based on a whole series of attributes, and then go to the tax incentive bidding table. One thought for an incentive might be if somehow Illinois can help relieve Amazon of sales taxes required on internet sales.
- cdog - Friday, Sep 8, 17 @ 4:15 pm:
word, c’mon dude. Amazon corp values are contradictory to progressive/Chicago/blue state values. What’s so hard about that poke at democratic party politics?
“So Emmanuel wants to encourage the 50,000 brains that it takes to oppress all these workers?”
Re-stated–The new HQ2, with $100K+ salaried executives. will be one of the command centers which administers over the 300,000 that make around $12.00/hr.
I guess Chicago wants $15/hr for folks, until they don’t.
https://www.glassdoor.com/Hourly-Pay/Amazon-Hourly-Pay-E6036.htm
Contradictory? Hypocritical? Cognitive Dissonance? Pick your favorite, this topic fits.
- RNUG - Friday, Sep 8, 17 @ 4:20 pm:
- Ducky -,
Boston is a possibility. Only been there once and I’m not as familiar with the geographic risks there as I am the mid-west and southern sites.
Another consideration, if they plan to duplicate and sync data in real time, is latency which translates to distance. Coming from Seattle, that would tend to favor Chicago over anything further east or south.
- blue dog dem - Friday, Sep 8, 17 @ 4:25 pm:
Corporate give-aways. The new American dream. Glad to know my taxes went up so we can shut down a few more strip malls and shopping centers. I will pray this does not come to fruition.
- walker - Friday, Sep 8, 17 @ 4:52 pm:
CDog: You bring up some interesting new angles.
First that Amazon wouldn’t want HQ staff in a place of progressive values — that’s been an issue for them up to now?
Second that somehow off that Rahm shouldn’t want a company in Illinois that doesn’t share his progressive platform — like all the other Fortune 500 companies he favors in Chicagoland?
You’re stretching for your jabs.
- Common Sense - Monday, Sep 11, 17 @ 9:44 am:
I know it’s the second oldest trick in the book to characterize tax incentives as an “expense,” but you all seem to have been drinking your own cool aid to the point that you’ve lost touch with reality. Tax incentives are not money flowing out from the State, ciry, or any other branch of government. Tax incentives are a (usually temporary) agreement to not have tax (that wouldn’t otherwise exist) flow in to a branch of government. If Amazon comes, they bring billions in investment dollars, billions in salaries on new and relocated jobs, and billions in corporate revenues, not to mention attracting new people to the State. The governments keep the tax revenue on the investment and on the salaries, in exchange for taking below-market amounts on the corporate revenues. Giving unemployed people jobs or employed people better jobs is the only way to improve an economy (and thus fund a bloated government). Until you understand that simple fact, you will all stay mired in these same fallacies you all post here day after day.