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The idea is that CMU spits out about 200+ world class CS grads a year. If even 5% decide to stay in the area to start their own ventures. There would be potential for massive growth.
the other data points that shocked me is that the population of Greater Austin, Texas is now 2.5M souls! I still think of it as a sleepy southern college town like Athens, GA ;) And that Denver is experiencing a net influx of 10K people per day!
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Breaking the process into stages like this will create a bidding war where Amazon can then go to each city government and extract more benefits. I'm usually against tax payers funding things like this (ie:stadiums) but I still selfishly want the location to be somewhere in the NYC/Philly/DC corridor.
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I'm scared to see the numbers of "incentives" that local politicians try and hand out to Amazon. There's little evidence that the public money used/lost will ever be recouped. One of the worst cases of this happening so far is the Foxconn deal in Wisconsin that will cost taxpayers around $4.5B [1], and I feel that numbers for Amazon will dwarf those Foxconn numbers.
The US is far removed from the days of trust busting [2], and keeping massive corporations (monopolies and oligopolies) and their market distorting effects in check, for the long-term benefit of the entire economy and the people. There seems to be a lot of similarities between now and the late 1800s and early 1900s. We live in a strange time. I get the feeling there will be a strong resurgence of antitrust cases and similar progressive policies. I'm curious to see where the near future takes us.
1: http://host.madison.com/wsj/news/local/govt-and-politics/mem... 2: https://en.wikipedia.org/wiki/Presidency_of_Theodore_Rooseve...
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https://www.nytimes.com/interactive/2017/09/09/upshot/where-...
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Amazon is going to be looking to build a major campus (say 5-10 big buildings) right in the center of town (as they've done here in Seattle) and that's just not feasible in expensive cities like LA, Boston, NYC, Chicago or DC. Denver is too far west, Miami, Atlanta and Raleigh too far southeast. Newark and Philadelphia don't have a sufficiently developed tech scene and as satellites of NYC have a price premium. There's no way Seattle and Dallas are going to form a family, Austin looks great on paper but I doubt they're hungry enough to offer sufficient incentives. Don't know why Montgomery County or Northern Virginia are even on this list.
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"...some site-selection experts to speculate Mr. Bezos may choose a location where an influx of workers could help promote political change..."
Playing with that notion.
Premise: 50k tech workers would have more impact on US politics if: 1) added to U.S. cities; 2) added to cities in states with smaller populations. (Debatable premise(s), but just go with it).
Below is trimmed down version of the original list of 20 with that in mind, sorted by lowest population. Cities in states where 50k would be < 0.40% of the population were cut (eg. 50k in florida would only be 0.25%).
Place: 50k/State Pop (as %)
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Denver: 1.00%
Nashville: 0.77%
Northern Virginia: 0.63%
Atlanta: 0.50%
Raleigh: 0.50%
Columbus: 0.45%
(50k would be about 7.35% of Washington DC, which I edited out, but put back in after seeing a reply to this post)(list of cities and quote above from https://www.wsj.com/articles/amazon-narrows-choices-for-seco...)
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http://www.paddypower.com/bet?action=go_type&ev_type_id=2271...
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Plenty of housing, transit straight to the city or an international airport, convenient access to the nations capital for lobbying, in the middle of us-east-1, a large population of tech workers, lots of local universities, right in the middle of the east coast...
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* Montgomery county, MD
* Northern Virginia
* Washington DC
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[1] http://www.philly.com/philly/business/real_estate/commercial...
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UPDATE: Spelling mistake
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It seems like the lack of nonstop flights to Seattle is the only real downside to it. But that's something I would think could almost certainly be fixed before the new campus was even finished.
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Good to see they are more concerned with talent and infrastructure rather than just bottom line costs.
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I canβt see amazon casting a big enough cultural shadow to change those cities instead of those cities changing them.
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From that perspective, some of the cities isn't surprising. For example, I grew up in Columbus, OH and I know that one of the AWS regions is located in the greater Columbus area. The airport is international but it is is not a major hub like Atlanta. When I lived in Seattle, I remember locals there complaining about the transit system -- yet it is way better than what Columbus has.
I do know that, Columbus is probably willing to change things about its city to accomodate Amazon. Not just in terms of tax credits, but likely extending all the way out to municipal and regional planning.
The same could be said about the other cities -- Austin, Newark, etc.
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- Boston
- Dallas
- Atlanta
- Chicago
- Denver
In all likelihood it'll be Boston or Denver.
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Amazon could build quite the campus on that much land.
[1] http://business.financialpost.com/pmn/business-pmn/bombardie...
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For Amazon's decision, NC politics probably take points away, but right to work probably adds points in favor.
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Oh well, same old same old. Look at all the dots on the edges.
[1] http://www.kansascity.com/news/business/article180878701.htm...
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The cities sorted by number of nonstops to Seattle per day:
Los Angeles 23 Denver 18 Chicago 14 Dallas 12 Washington, D.C. 7 Atlanta 6 Newark 6 New York 6 Boston 5 Austin 3 Nashville 2 Philadelphia 2 Raleigh, N.C. 2 Indianapolis 1 Toronto, Canada 1 Miami 1 Columbus 0 Pittsburgh 0 Montgomery County, Md. ? Northern Virginia ?
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The highway system itself is an innovation from the 50's and (In My Humble Opinion) lack of continued innovation on the US transport system since has significantly contributed to the loss of US technical/economic leadership since then.
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I mean, sure, Amazon invested billions in Seattle, but those billions went to people who lead end of days capitalist lifestyles oriented around giving that money right back megacorporations like... Amazon. Suggesting the Amazonβs investment will be meaningfully local is kind of comical. Itβs a multinational, and the people who get that money will give it right back to multinationals. Thatβs how those people spend their income.
Amazon isnβt trying to promote ways of life that donβt revolve around cheap foreign goods, soul crushing work, and an isolated, lonely existence. The lucky place that lands HQ2 will have more of all these things, and a lot less humanity. Itβs good for business.
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Of course, it's hard to pick any location farther than Seattle from DC.
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Please don't ruin Austin either...
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Joking aside, What sort of hoops do they expect these city and state governments jump through?
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Hopefully it goes to a region that kinda needs it and can grow further.
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I really wished they considered a majority African American community that has the capacity to grow. This is just going to increase inequality. Sad really.
Let's hope for Atlanta.
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I'm not really sure how to go about handicapping the finalists.
Given the current political climate, Toronto is interesting because it's the only city that gives Amazon some escape form the US government.
You'd want:
- an international airport so you can get to Beijing, London, etc on a single flight. This might eliminate the smaller cities.
- a strong existing tech workforce and universities.
- land in the downtown core to build on, this might eliminate New York?
- perhaps you'd preference the cities that already have an amazon campus in them.
Toronto has all of these..
Ah, who am I kidding. its going to come down to which government gives them the most money and that eliminates Toronto.
Would be fun for someone in each city to make a list of what makes your city a good choice for the headquarters!!