Could Detroit make a pitch for Amazon headquarters? City is 'carefully evaluating'

Detroit Free Press

Let the scrambling begin.

Amazon's decision to build a second North American headquarters sets up the most consequential U.S. economic-development contest in recent memory, as states and cities jockey to land up to 50,000 jobs.

The Seattle-based tech and online retail giant founded and run by billionaire Jeff Bezos announced the plan Thursday. It gave states, metropolitan areas and provinces through Oct. 19 to deliver proposals for the $5-billion project. The company expects to announce a decision on "HQ2" in 2018.

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Hours after Amazon's announcement, Detroit Mayor Mike Duggan's office said the city is carefully evaluating the retailer's request for proposals.

"... As to Amazon's announcement that it is seeking proposals for a second headquarters, our only comment at this time is that we will be evaluating it carefully," said John Roach, Duggan's spokesman.

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Amazon said it wanted an urban or suburban area with more than 1 million people, shovel-ready real estate, quality of life and a "stable and business-friendly environment."

"Everybody in this country — and frankly probably in North America, Canada and Mexico included — is excited and thinking, 'Oh my gosh, what an opportunity for our community,'" said Michael Langley, 2017 board chair of the International Economic Development Council.

The expansion comes as Amazon is rapidly growing its operations throughout the country, seeking to dominate retail, web hosting, streaming video content and consumer electronics.

Proximity to a major airport, a friendly regulatory environment, taxes, livability, sustainable and affordable energy, advanced mass transit and readiness for autonomous vehicles are also key factors, said Calandra Cruickshank, CEO of StateBook International, which provides online data for site selection decisions.

Cruickshank suggested that Amazon's identity as a disruptive giant makes it "possible that they might be disruptive in this choice, as well."

"Rather than choosing one of the usual suspects, they might actually choose to start their own beachhead somewhere else," she said.

The company is currently soliciting bids and is 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, and it expects to hire new teams and executives for HQ2.

Amazon is also willing to consider greenfield sites, infill sites, existing buildings, or a combination for the project, according to the RFP.

"If existing buildings are available that can be retrofitted/expanded within an acceptable budget and time schedule, Amazon may consider this option, however, the company acknowledges that existing buildings may not be available to meet its requirements," the company stated. "As such, Amazon will prioritize certified or shovel-ready greenfield sites and infill opportunities with appropriate infrastructure and ability to meet the project’s timeline and development demands."

Amazon also said that tax incentives offered by state or local communities to offset costs will be significant factors in the decision.

In recent months, Amazon has announced plans to open new locations in southeast Michigan, including a distribution warehouse in Livonia in the fall.

The Livonia facility — what Amazon calls a fulfillment center — is one of a handful Amazon is building in southeast Michigan to expand its delivery network in the state and speed the time it takes to deliver packages to customers.

The center, which is still under construction, is set to be about 1 million square feet.

The state approved a $7.5-million grant as an incentive to build the center in Michigan.

And in June, Amazon announced plans to open a metro Detroit distribution center, this one in Romulus, that would create at least 1,600 jobs and expand the retailer's Midwest distribution network in Michigan.

The company asked for a $5-million grant from the state, which could help offset the cost of new roads and infrastructure improvements that would be needed. The new center could be built and open within a year.

In a previous interview with the Free Press, Duggan said he'd like to focus on creating more opportunities for residents and he believes that can be accomplished through more training opportunities and new businesses coming to the city. Duggan said the city needs to work on piecing more larger parcels of land together to draw in potential employers.

Langley — who also serves as CEO of Greater MSP, the Minneapolis St. Paul Regional Economic Development Partnership — said Amazon would probably seek a region that's "investing in education, investing in workforce, investing for the long term."

"That's always the first and last question we're asked in any major project where the personnel needs are intense," he said.

Officials in many areas, including Chicago, Minneapolis, Nashville, Cincinnati and Indianapolis have already signaled plans to pursue the project.

Amazon has not identified any specific contenders, and site-selection experts are hesitant to make predictions.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

Free Press staff writers Katrease Stafford and Frank Witsil contributed to this report.