With the prospect of bringing more than 50,000 jobs to the region it decides upon for its second home, next to Seattle. At least 73 cities have put in bids to be the one Amazon chooses.

"[A]lthough the $5 billion project is sure to inject billions of dollars into the local economy and provide work for thousands of residents, some economists are warning that hosting the retail giant could bring on some equally giant headaches.

"It feels like 'Willy Wonka and the Chocolate Factory,'" Mark Zandi, chief economist at Moody's Analytics, told NBC News. "It's a real prize, but they're going to need to be very disciplined. It's a big deal, a big project with lots of moving parts."

While residents of the chosen city will likely reap the benefits of high-paying jobs and skyrocketing property values, they may also have to contend with some pain points as Amazon gets settled.

Traffic jams and labor pains
"It's a big construction project, and all large projects can be a bit of a nuisance to the existing residents," Zandi said of the proposed eight-million-square-foot headquarters.

For a start, that means an influx of construction workers and materials coming to and from the site. This will raise the cost of labor for other businesses, Zandi said, since Amazon will be competing for workers.

"People will move in to take the jobs, but it will probably put pressure on other businesses in the community who have the same labor pool," he said. "Some businesses might not be that excited."

Traffic patterns in the chosen city will also be forever changed as thousands of workers commute to and from the new headquarters. Amazon is targeting metropolitan areas with more than one million people and within a 45-minute drive to an international airport.

"There could be all kinds of traffic problems associated with a burst of construction and a change in location of employment," Gary Burtless, an economist at the Brookings Institution, told NBC News.

And, while traffic jams may already be a way of life in cities like Phoenix and Chicago, they're "the kinds of problems cities like Buffalo and Rochester and St. Louis dream of having," he said, noting that these are "problems of prosperity."

However, Tom Kucharski, president and CEO of Invest Buffalo Niagara — which is launching a joint bid with neighboring Rochester — said he sees the benefit of Amazon choosing a city looking for a resurgence.

"The benefit we have is, through the structural reordering of industries over the past 100 years, we have infrastructures that can accommodate new investments in rail, airports can ramp up greater service," Kucharski said. "Where a lot of other communities may struggle with housing and workforce, we are sitting here ready for this opportunity....

While each city has made its own particular case, Moody's scored the competing cities in five categories: business environment, human capital, cost, quality of life, and transportation and geography.

Using a data-driven approach, it found Austin, Texas, was in first place, with Atlanta a close second. Philadelphia, the Rochester-Buffalo joint bid, and Pittsburgh rounded out the top five.

Ultimately, the winning factor will likely be the good will of residents, said Zandi.

"Amazon wants to be welcomed by the community. If there are people protesting or objecting, I would think it would have an impact on Amazon's location decision," he said. "They want to make sure the community wants them as much as they want to be there.""

https://www.nbcnews.com/tech/tech-news/why-amazon-s-new-5-billion-headquarters-may-ruin-your-n811411

Calgary is pushing hard for it. Would change the employment landscape in southern Alberta for sure.

For all the inconvenience it may bring to whichever city it decides upon, I like the idea of housing prices going up to rival Silicon Valley for the local housing market at least.

Otherwise I wouldn't miss the traffic congestion 50,000 more jobs would add to the local economy; it will be a huge boon to business, won't it?!

One San Diego county town (Chula Vista) is in the running.
They can have it.

My rural town will stay rural, and I can still get my Amazon Prime packages in 2 days :)

It is the largest business development opportunity in the history of the country, per Spectrum news.

According to NY legislators, NY aligns better than any state in the country with what Amazon is shopping for. Many scenarios exist where NY would appeal to Amazon. Albany; NYC; and Buffalo/Niagara are three of the major contenders in my state alone.

Each bid Amazon receives has its own flavor focusing on the states infrastructure; educational background of potential employees, and available resources..

Tax incentives being plied by area is one of the top considerations.

New York state continues to lose residents - its population shrinks with the exception of new immigrants. Baby boomers are retiring to the sunbelt states. X-geners and Millenials move out of state for work opportunities. Taxes are some of the highest in the nation here, which is why it has a hard time keeping and retaining businesses.

Without a *ton* of tax incentives, I don't see Amazon wanting to make its second headquarters in NYS - albeit the other conditions might otherwise be idyllic for it to do so - by virtue of the high taxation here.

Although public services are good here ie., good public schools & higher education; medical facilities etc.

Amyjo Wrote:
-------------------------------------------------------
> Taxes are some of
> the highest in the nation here, which is why it
> has a hard time keeping and retaining businesses.

They've been working hard to change that:

https://esd.ny.gov/startup-ny-program

It may take more than that to reverse the trend of businesses leaving New York to somewhere they aren't going to be taxed out of doing business here.

While a large company such as Amazon commands the attention of policy makers to want to lure it with tax incentives to move into the area, it's the smaller businesses that feel the heat more because they don't benefit from the same deal.

One of Amazon's criteria is a locale with a growing economy, so it won't be going into any distressed areas. The NY Times thinks the top three choices are the regions surrounding Denver, Washington, D.C., and Boston. I agree with them on the first two. I think that Denver is the obvious pick if Amazon doesn't mind a second location in the west. If they need one in the east, then Washington, D.C. is the way to go.

Washington DC is far too congested as it is. Only reason some major companies make their headquarters there is owing to the large tax breaks and legal loopholes businesses are allotted by incorporating there. Otherwise, for cost of living and quality of life, I don't see what the draw would be. The DC area is a very costly place to live and work.

It's interesting that the NY Times top choices varies 100% from the Moody's data driven analysis.

The Moody's ranking scoresheet takes into account the business environ, quality of life, human capitol, geography and transportation, and came up with an entirely different list.

Can't speak for any of the other locales, but the Buffalo-Niagara region's quality of life is highly rated. It's been called the friendliest city in America. As for ease of transportation you can get almost anywhere within the metro area within a fifteen minute drive. Housing is still some of the most affordable in the nation.

Among the downsides of Amazon moving into that or a similar community will be the added congestion all those jobs will bring, and the housing prices may skyrocket to where the working and middle class will be driven out of the housing market.

The Times went strictly by Amazon's own criteria.

The entire east coast corridor (Washington D.C., Baltimore, Philly, NYC, Boston) is costly. The Maryland/D.C./NOVA region has a great quality of life. The District is one of my favorite cities in the U.S. A young person with a good income would find it a very agreeable place to live. There are plenty of good options for families living in the 'burbs.

One of Amazon's needs is a place that would be attractive to techies. I don't see Buffalo being a big draw in that regard, but I could be wrong. I could see a lot of people wanting to live in the Denver area.

Buffalo winters are definitely a drawback to living in the Queen City.

Quality of life is what keeps residents here. Lots of people who move away from here find themselves returning after realizing the 'grass is not greener' on the other side of the pasture.

There are lots of start-up companies here, higher education is a big draw for the region. Many good universities make their home here. For human capitol that's a plus for employers. They can hire and retain quality employees here for lower costs than other higher cost regions like DC and the Eastern seaboard.

Although the winters are probably the main reason why people eventually leave. With global warming they've been getting gradually warmer. There's no hurricanes here, no major earthquakes to contend with. It's not tornado alley.

Yet we managed to break records in the last couple years. One for the coldest winter on record, followed by the warmest winter on record.

Some of the prettiest countryside abounds in upstate New York. We have the Fingerlakes region (think wine country.) Chautauqua, Niagara Falls, Adirondacks, little hamlets and villages scattered all around the state give balance to the cold northern climate. The changing seasons are some of the prettiest I've ever seen living here.

That being said, Seattle where Amazon is headquartered now, is in the Northern belt. If it is looking for 'balance' in where to establish a second headquarters I could see it going for somewhere in the Sunbelt. Hence, why possibly Atlanta and Austin, Texas are in the front running for its consideration.

It noted in article that Amazon has already decided on its location - though it may take up to a year before announcing it.



Edited 2 time(s). Last edit at 10/21/2017 08:46AM by Amyjo.

Have to disagree with you Summer on quality of life in NOVA. That stretch of 95 from F'burg to DC is the worst traffic in the country. Not to mention the exorbitant cost of housing up there. I would never want to move to NOVA.

They are also putting in for it in Richmond/C'field. They are delusional. We don't even have a metropolitan mass transit system bc the county doesn't want the urban black population coming out to the county. It is so backwards here.

But mostly I don't want the increased population (problems) 50,000 more jobs in this region would bring. We could not handle it here.

Yeah, the traffic in NOVA is terrible. If Amazon went there, they would have to place the facility very, very carefully. I would be okay with it coming to Maryland. Baltimore is in the mix, and has a lot going for it, but I don't see it happening.

Ogden Utah.

Now that would be groundbreaking.