SEATTLE — Wanted: A place with a million people, a diverse population, good schools and malleable lawmakers. Room to accommodate up to 50,000 workers. Canadian provinces also welcome to apply.

Amazon took the unusual step on Thursday of announcing it wants a second home outside Seattle, starting what is sure to be a fierce bidding war to lure Amazon — and the thousands of high-paying jobs it will bring to town — using a combination of tax breaks and other sweeteners.

By the end of the day, cities including Chicago, Dallas and San Diego, along with states like Michigan, were vocal about their interest, the first of many places expected to consider submitting proposals. Amazon has laid out in meticulous detail what it is looking for, even acknowledging that new laws may be required to get the high level of incentives necessary to hold the company’s attention.

“This is the trophy deal of the decade as far as I can tell,” said Greg LeRoy, the executive director of Good Jobs First, a nonpartisan research group that tracks economic development. “What governor or mayor doesn’t want to stand on a stage with Jeff Bezos to announce a deal like this?”</s>Amazon.com Inc. is in the market for a second home.

The Seattle-based online retailer said Thursday it plans to open a second headquarters somewhere in North America that will house up to 50,000 employees and cost $5 billion to build and operate.</s>Amazon planning second headquarters in North America, to create up to 50,000 jobs

Amazon.com Inc (AMZN.O) said on Thursday it was searching for a location to build its second headquarters in North America that would cost more than US$5 billion and house up to 50,000 staff.

The e-commerce company, which is headquartered in Seattle, said it was seeking proposals from local and state government leaders and would select the location next year.

Amazon's workforce has exploded to more than 380,000 from under 25,000 since it moved to Seattle in 2010, as it rapidly expanded to become a global retailer - selling everything from groceries to appliances.

The company's total revenue has grown to US$136 billion at the end of last year from US$34 billion in 2010. Amazon recently snatched up Whole Foods Market for US$13.7 billion.

Amazon said the new headquarters should ideally be located in a metropolitan area with more than one million people, potentially giving the company a shopping list of more than 50 cities to choose from.

The project would initially need more than 500,000 square feet and up to 8 million square feet beyond 2027, Amazon said.

"We want to find a city that is excited to work with us and where our customers, employees, and the community can all benefit," Amazon said.

Amazon is looking for a favorable tax structure and local government subsidies, incentives that have attracted other companies like Taiwan-based Foxconn to build facilities in the United States.

Foxconn plans to build a US$10 billion liquid crystal display factory in Wisconsin. The state's Republican-controlled government had voted to approve a bill aimed at establishing a US$3 billion incentive package for the plant.

Amazon expects the new headquarters to be a "full equal" to its Seattle office, Chief Executive Jeff Bezos said in a statement.

The Seattle campus is spread across 8.1 million square feet in 33 buildings and employs more than 40,000 people.

Amazon's shares were up 1 per cent at US$978 on Thursday morning.</s>Amazon.com Inc said on Thursday it would build a $5 billion second headquarters in North America, kicking off a competition between cities and states to offer tax cuts and incentives that could bring 50,000 new jobs. The largest e-commerce company said it intended to create “HQ2”, a headquarters that would be a “full equal” to its Seattle office, Chief Executive Jeff Bezos said in a statement. The company wants a metropolitan area of more than a million people with an international airport, good education and mass transit.

Amazon was likely to land its second headquarters in a cheaper city than Seattle and score subsidies. The company promised up to 50,000 jobs averaging more than $100,000 in annual compensation over the next 10 to 15 years. Cities and states immediately began saying they would bid. Dallas, Houston, Toronto, St. Louis, Kentucky and Miami are a few that are committed to bid. Chicago Mayor Rahm Emanuel has made a case for his city in discussions with Bezos, a Chicago spokesman said.

Companies with two headquarters are rare and distance could challenge the management abilities of Bezos and other leaders, but some investors and analysts also saw the geographical diversification as a way to cut costs and risk. It would also make it easier for the conglomerate to break up down the line if it so chooses. “The company is changing radically and it depends so heavily on disruptive thinking. Moving to a new city and finding a new talent pool is a good idea,” said Antony Karabus, chief executive of HRC Retail Advisory.

Incentives from land to fee cuts to relocation packages will be a major part of the decision, Amazon said. Local governments have gone to great lengths to secure jobs and investment. Wisconsin’s legislature, for instance, recently voted to give Taiwanese manufacturer Foxconn a $3-billion incentive package to build a $10-billion liquid crystal display factory in the state.

Also read: Shopping by voice on Amazon or Google device could cost you

Amazon’s plan will also boost its political leverage at a time when it has been blamed for the decline of bricks-and-mortar retailers. President Donald Trump has criticized Amazon as doing “great damage”, costing jobs in cities and states. The Wisconsin Foxconn factory will be in the home district of Paul Ryan, Speaker of the US House of Representatives.

Amazon said it was seeking proposals by Oct. 19 and would select the location next year. More than 50 cities have the 1-million metropolitan area population Amazon targets. Likely contenders could include US Midwest states, where Amazon has many warehouses; Texas, which is the base of the Whole Foods Market grocery chain it acquired this year; and other business-friendly states.

Amazon has been awarded more than $1 billion in state and local subsidies since 2000, according to estimates by watchdog Good Jobs First. Texas leads the way with the value of subsidies to Amazon, followed by Illinois, Kentucky, and Ohio, it said. Seattle has become an expensive city, ranking 44th on the Economist Intelligence Unit global cost-of-living ranking.

“The high cost of living and the high cost of real estate, all of that adds up to why expanding in that market is not viable,” said Burt Flickinger, managing director of retail consultant Strategic Resource Group. Amazon may be looking for “more affordable” locations such as Detroit or Atlanta, said Daniel Morgan, vice president and senior portfolio manager, at Synovus Trust Company in Atlanta. Synovus holds a “large” position in Amazon, he added.

Amazon began as a bookseller and grew into the internet’s biggest retailer. It built an award-winning movie studio and has expanded around the world. Its workforce has exploded to more than 380,000 from under 25,000 since it moved to downtown Seattle in 2010. Total revenue was $136 billion at the end of last year, up sharply from $34 billion in 2010. Amazon recently snatched up Whole Foods Market for $13.7 billion.

Ashim Mehra, an analyst who works on the $256 million Baron Opportunity Fund, said the dual-city strategy pushed Amazon toward an eventual split between its Amazon Web Services business and its retail business. Such a move would ease the threat of increased regulations on the company and cut internal competition for the best engineers, he said.

The “HQ2” project would initially need more than 500,000 square feet and up to 8 million square feet beyond 2027, Amazon said. Its Seattle campus spreads across 8.1 million square feet in 33 buildings and employs more than 40,000 people. The second headquarters also allows the company to lower its operational risks should a natural disaster hit Seattle, said Josh Cummings, an analyst who works on several funds at Denver-based Janus Henderson funds.

He also saw the potential for an eventual split. “I think that immediately this is about staging the next leg of growth at Amazon as it exists today, but down the road this gives them an additional degree of freedom if they decide or are forced to separate the company,” he said.

For all the latest Technology News, download Indian Express App</s>Amazon.com Inc <AMZN.O> said on Thursday it would build a $5 billion second headquarters in North America, kicking off a competition between cities and states to offer tax cuts and incentives that could bring 50,000 new jobs.

The largest e-commerce company said it intended to create "HQ2", a headquarters that would be a "full equal" to its Seattle office, Chief Executive Jeff Bezos said in a statement. The company wants a metropolitan area of more than a million people with an international airport, good education and mass transit.

Companies with two headquarters are rare and distance could challenge the management abilities of Bezos and other leaders, but some investors and analysts also saw the geographical diversification as a way to cut costs and risk.

"The company is changing radically and it depends so heavily on disruptive thinking. Moving to a new city and finding a new talent pool is a good idea," said Antony Karabus, chief executive of HRC Retail Advisory. Amazon's growth rate means they need thousands of new employees every year, he added.

Many cities have a cheaper cost of living than Seattle, and Amazon also wants subsidies. Incentives from land to fee cuts to relocation packages will be a major part of the decision, Amazon said, and local governments have shown they will go to great lengths to secure jobs and investment. In return, it promised up to 50,000 jobs averaging more than $100,000 in annual compensation over the next 10 to 15 years.

Wisconsin's legislature recently voted to give Taiwanese manufacturer Foxconn a $3-billion incentive package to build a $10-billion liquid crystal display factory in the state, for example.

Cities and states immediately began expressing interest. Dallas has already contacted Amazon, Mayor Michael Rawlings said, and Kentucky plans to submit a formal bid. Houston is interested and Chicago Mayor Rahm Emanuel has made a case for his city in discussions with Bezos, a Chicago spokesman said.

Toronto's mayor John Tory called the Canadian city a "prime candidate." St. Louis Mayor Lyda Krewson said her city is "putting together a team to make a competitive bid." Pittsburgh also plans to compete.

Amazon's investment plan gives it new leverage with politicians at a time when it has been criticized for its effect on bricks-and-mortar retailers. President Donald Trump has criticized the company as doing "great damage", costing jobs in cities and states. The Wisconsin Foxconn factory will be in the home district of Paul Ryan, Speaker of the U.S. House of Representatives.

Amazon said it was seeking proposals by Oct. 19 and would select the location next year.

More than 50 cities have the 1-million metropolitan area population Amazon targets. Likely contenders could include U.S. Midwest states, where Amazon has many of its warehouses; Texas, which is the base of the Whole Foods Market grocery chain it acquired this year; and other business-friendly states.

Amazon has been awarded more than $1 billion in state and local subsidies since 2000, according to estimates by watchdog Good Jobs First, which collects information on state subsidies from government filings, academics and news reports. Texas leads the way with the value of subsidies to Amazon, followed by Illinois, Kentucky, and Ohio, it said.

"Amazon's business model changed from avoiding state sales tax collections to seeking economic development incentives," said Greg LeRoy, executive director of Good Jobs First.

Seattle has become an expensive city, ranking 44th on the Economist Intelligence Unit global cost-of-living ranking, making expansion in another state a potentially low-cost alternative, regardless of subsidies.

Amazon may be looking for "more affordable" locations such as Detroit or Atlanta, said Daniel Morgan, vice president and senior portfolio manager, at Synovus Trust Company in Atlanta. Synovus holds a “large” position in Amazon, he added.

Amazon, which began as a bookseller, has grown into the internet's biggest retailer, built an award-winning movie studio, and has expanded around the world. Its workforce has exploded to more than 380,000 from under 25,000 since it moved to downtown Seattle in 2010.

The company's total revenue has grown to $136 billion at the end of last year, from $34 billion in 2010. Amazon recently snatched up Whole Foods Market for $13.7 billion.

The "HQ2" project would initially need more than 500,000 square feet and up to 8 million square feet beyond 2027, Amazon said.

"We want to find a city that is excited to work with us and where our customers, employees, and the community can all benefit," Amazon said. Its Seattle campus spreads across 8.1 million square feet in 33 buildings and employs more than 40,000 people.

Seattle Mayor Ed Murray said his office immediately began conversations with Amazon about the company's needs and its long-term plans for operations in the city. "But, we also must know headwinds are coming. Unprecedented growth will not happen forever and my upcoming budget will reflect that."

Incentives for Amazon’s new headquarters could make sense as a long-term investment, said Michael Mandel, chief economic strategist for the Progressive Policy Institute, a liberal think tank.

“The question is, how much of a tax break would you have given to have Apple set up shop in your state? It’s not so much the jobs as becoming a focal point for growth. No one can put a price tag on that.”</s>Amazon.com Inc. is in the market for a second home.

The Seattle-based online retailer said Thursday it plans to open a second headquarters somewhere in North America that will house up to 50,000 employees and cost $5 billion to build and operate.

The company is soliciting bids for the project, dubbed Amazon's "HQ2," and said it would prioritize metropolitan areas with more than one million people.

"We expect HQ2 to be a full equal to our Seattle headquarters," Amazon's Chief Executive Jeff Bezos said in prepared remarks. "Amazon HQ2 will bring billions of dollars in upfront and ongoing investments, and tens of thousands of high-paying jobs. We're excited to find a second home."

Amazon estimates that its existing Seattle headquarters, which opened in 2010, has brought an additional $38 billion in investments to the local economy.

Existing senior leaders will get to choose whether they locate their teams in the Seattle headquarters, HQ2 or both, the company said.</s>REUTERS: Amazon.com Inc said on Thursday it would build a US$5 billion second headquarters in North America, kicking off a competition between cities and states to offer tax cuts and incentives that could bring 50,000 new jobs.

The largest e-commerce company said it intended to create "HQ2", a headquarters that would be a "full equal" to its Seattle office, Chief Executive Jeff Bezos said in a statement. The company wants a city of more than a million people with an international airport, good education and mass transit.

It also wants subsidies. Incentives from land to fee cuts to relocation packages will be a major part of the decision, Amazon said, and local governments have shown they will go to great lengths to secure jobs and investment. In return, it promised up to 50,000 jobs averaging more than US$100,000 in annual compensation over the next 10 to 15 years.

Wisconsin's legislature recently voted to give Taiwanese manufacturer Foxconn a US$3-billion incentive package to build a US$10-billion liquid crystal display factory in the state, for example.

Cities and states immediately began expressing interest. Dallas has already contacted Amazon, Mayor Michael Rawlings said, and Kentucky plans to submit a formal bid. Houston is interested and Chicago Mayor Rahm Emanuel has made a case for his city in discussions with Bezos, a Chicago spokesman said. Toronto's mayor John Tory called the Canadian city a "prime candidate."

Amazon's investment plan gives it new leverage with politicians at a time when it has been criticized for its effect on bricks-and-mortar retailers. President Donald Trump has criticized the company as doing "great damage", costing jobs in cities and states. The Wisconsin Foxconn factory will be in the home district of Paul Ryan, Speaker of the U.S. House of Representatives.

Amazon said it was seeking proposals by Oct. 19 and would select the location next year.

More than 50 cities have the 1-million population Amazon targets. Likely contenders could include U.S. Midwest states, where Amazon has many of its warehouses; Texas, which is the base of the Whole Foods Market grocery chain it acquired this year; and other business-friendly states.

Amazon has been awarded more than US$1 billion in state and local subsidies since 2000, according to estimates by watchdog Good Jobs First, which collects information on state subsidies from government filings, academics and news reports. Texas leads the way with the value of subsidies to Amazon, followed by Illinois, Kentucky, and Ohio, it said.

"Amazon's business model changed from avoiding state sales tax collections to seeking economic development incentives," said Greg LeRoy, executive director of Good Jobs First.

LeRoy, who has written critically of Amazon, said the reality of moving a headquarters has more to do with the executive talent pool, the amenities, schools, housing stock and quality of life, rather than municipal finance incentives.

Amazon's shares were up 1.2 percent at US$979.61 on Thursday.

Amazon pointed to its expansion in Seattle as a sign of what it could do. The company, which began as a bookseller, has grown into the internet's biggest retailer, built an award-winning movie studio, and has expanded around the world. Its workforce has exploded to more than 380,000 from under 25,000 since it moved to downtown Seattle in 2010, as it rapidly expanded to become a global retailer - selling everything from groceries to appliances.

The company's total revenue has grown to US$136 billion at the end of last year, from US$34 billion in 2010. Amazon recently snatched up Whole Foods Market for US$13.7 billion.

The "HQ2" project would initially need more than 500,000 square feet and up to 8 million square feet beyond 2027, Amazon said.

"We want to find a city that is excited to work with us and where our customers, employees, and the community can all benefit," Amazon said. Its Seattle campus spreads across 8.1 million square feet in 33 buildings and employs more than 40,000 people.

Seattle Mayor Ed Murray said his office immediately began conversations with Amazon about the company's needs and its long-term plans for operations in the city. "But, we also must know headwinds are coming. Unprecedented growth will not happen forever and my upcoming budget will reflect that."

Incentives for Amazon’s new headquarters could make sense as a long-term investment that could change the image of a metropolitan area, said Michael Mandel, chief economic strategist for the Progressive Policy Institute, a liberal think tank.

“The question is, how much of a tax break would you have given to have Apple set up shop in your state? It’s not so much the jobs as becoming a focal point for growth. No one can put a price tag on that.”

One gripe among corporate watchdogs is the amount of actual state and local income taxes companies pay.

For instance, according to data from the Institute on Taxation and Economic Policy (ITEP), between 2008 and 2015, there were 240 profitable companies among the Fortune 500 that fully disclosed their state and local income tax payments. They paid state income taxes equal to less than 2.9 percent of their U.S. profits.

"Since the average statutory state corporate tax rate is about 6.25 percent (weighted by gross state product), that means that over this period, more than half of their profits escaped state taxes entirely," ITEP reported in April.</s>(USA TODAY) -- Seattle-based online retailer Amazon.com announced Thursday that it is seeking a second North American headquarters with up to 50,000 jobs.

In a statement, the company founded and run by billionaire Jeff Bezos said its "HQ2" would cost about $5 billion to build and operate.

The company, which is currently soliciting bids for the project, said it would prioritize metropolitan areas with more than one million people and that it was encouraging interested communities to think "big" and "creatively" about possible locations.

Amazon said HQ2 will be a complete headquarters for Amazon — not a satellite office. It said it expects to hire new teams and executives in HQ2, and will also let existing senior leaders across the company decide whether to locate their teams.

Employees currently working in HQ1 can choose to continue working there, or they could have an opportunity to move if they would prefer to be located in HQ2, it said.

"We expect HQ2 to be a full equal to our Seattle headquarters," Bezos said.

"Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. We’re excited to find a second home."

Amazon estimated that its investments in Seattle from 2010 through 2016 resulted in an additional $38 billion to the city’s economy.

Lately, Amazon has not been shy about investing beyond its Seattle hub. On Wednesday, the e-retailer announced plans to establish Amazon "experiences" next month inside ten Kohl's locations in Los Angeles and Chicago.

Back in June, the e-retailer spent $13.7 billion to acquire Whole Foods, which has 450 stores across the U.S. and will begin setting up Amazon Lockers in some locations where customers can pick up online orders.

Expanding on its brick-and-mortar presence, Amazon has eight bookstores across the U.S., with the most recent openings in New York, Lynnfield, Mass., and Paramus, N.J., and New York with five more expected to open soon.

In January, Amazon pledged to add 100,000 new full-time U.S. jobs by mid-2018, many of them at fulfillment centers, including ones being built in California, Florida, New Jersey and Texas. Last month, Amazon held job fairs at 10 U.S. sites to fill more than 50,000 jobs.

This new second headquarters will likely be well situated within Amazon's increasingly sophisticated logistics and delivery system, which uses its own growing fleet of cargo planes along with its fulfillment centers.

© Gannett Co., Inc. 2017. All Rights Reserved</s>SEATTLE — Amazon has announced plans to open a second headquarters in North America that will employ as many as 50,000 workers.

The company announced Thursday that it is searching for a city to host the new “HQ2” facility that will cost at least $5 billion to construct and operate.

“We expect HQ2 to be a full equal to our Seattle headquarters,” Amazon CEO Jeff Bezos said. “Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. We’re excited to find a second home.”

Amazon said it would prefer to open the headquarters in a suburban or urban area with more than 1 million people. It’s looking for a community that “thinks big” and a location that will attract technical talent.

Amazon has started hiring 1,000 workers for a new fulfillment center in Aurora.

And in June, the company announced it will build another facility in Thornton that will handle smaller items, and use robots to help pick and pack items.

The 2.4-million-square-foot center will create 1,500 full-time jobs and open in August.

The company said while it would hire teams and executives for the new location, employees who currently work in Seattle would be offered the chance to relocate.

Cities and regional economic development organizations have been invited to submit proposals, and they will likely scramble to offer incentives and tax breaks for Amazon to consider their area.

Amazon estimates its investments in Seattle from 2010 to 2016 added $38 billion to the city’s economy.

These investments include buildings, parks and infrastructure, such as corporate offices and Prime Now delivery sites.

Its headquarters in Seattle boasts 33 buildings and 24 restaurants or cafes. It covers 8.1 million square feet.

The announcement of Amazon’s second headquarters is a part of a larger effort from Amazon to grow its footprint at home and abroad.

In January, the company announced plans to create over 100,000 new full-time jobs in the U.S. It’s been steadily announcing new fulfillment centers.

Amazon also recently closed its $13.7 billion deal to buy Whole Foods as it expands into the groceries market and brick-and-mortar stores.

Meanwhile, it will start selling its branded smart home devices at Amazon bookstores and retailers like Kohl’s soon.</s>SEATTLE -- Amazon has opened the search for a second headquarters, promising to spend more than $5 billion on whatever site it chooses in North America.

Founder and CEO Jeff Bezos said Thursday that the new headquarters will be "a full equal" to its Seattle counterpart with as many as 50,000 jobs.

The announcement is certain to create a scramble among cities and states vying to make the short list. The company estimates that investments in Seattle between 2010 and 2016 added $38 billion to the city's economy.

There are 24 restaurants and cafes within Amazon's Seattle campus alone, where more than 20,000 people are employed. The increase in personal income around the Seattle headquarters for people not employed by Amazon increased by about $17 billion due to direct investments, according to the company.

The company gave few hints about where it would land, but did say it is looking at metropolitan areas with populations of more than a million that have the potential to attract top technical talent.

Amazon will hire thousands of new workers, but also said that people working at its Seattle headquarters will have the option of seeking a spot at the new site.

Cities and states are being advised by Amazon.com Inc. to visit www.amazon.com/amazonHQ2 for more information.
Amazon.com announces bidding for a second headquarters campus in North America, to house 50,000 workers and cost $5 billion USD (The New York Times)