HOUSTON – Houston has not yet formally submitted its proposal for Amazon’s second headquarters, a project expected to create as many as 50,000 new jobs. Nevertheless, city economic development leaders say they are assembling a strong, competitive package.
The official deadline for proposals is approaching and cities nationwide are racing to attract the retail giant with incentive offers, tax breaks and demonstrations that they meet Amazon’s site requirements.
The headquarters initiative is estimated to generate about $5 billion in development and will ultimately require approximately 8 million square feet of office space.
Midway, the Houston developer known for the CityCentre mixed-use project, has been actively promoting its eastside site by illuminating “AMZN” — the Amazon ticker symbol — on a building within the Midway property.
The 147-acre Midway tract just east of downtown, with one mile of frontage on Buffalo Bayou, is now being developed as East River. The site was formerly the KBR campus (previously Brown & Root). When Midway released early concepts for East River, CEO Jonathan Brinsden noted the development was being planned to support about 8 million square feet — coincidentally matching Amazon’s stated space requirement.
Generation Park, a major mixed-use project on the northeast side near Beltway 8, has also publicly courted Amazon. That development is led by Houston-based developer Ryan McCord.
The Greater Houston Partnership is coordinating with industry experts to craft the city’s official submission to the Seattle-based company before the October 19 deadline.
“I’m very excited about Houston’s prospects as we have a very compelling package to offer,” said Bob Harvey, president of the Greater Houston Partnership.
Across Texas, interest has surged since Amazon released its request for proposals in September. Dallas-area developers have been particularly visible, making numerous public appeals for specific sites as communities compete for one of the largest economic development opportunities in recent history.
U.S. Senators John Cornyn and Ted Cruz issued a public letter encouraging Amazon founder Jeff Bezos to consider Texas for the new headquarters.
Meanwhile, San Antonio announced it would no longer pursue the headquarters, saying the city prefers not to offer overly generous incentives and is stepping away from the bidding process.
Amazon’s public RFP effectively sparked a nationwide competition, with many cities prepared to offer extensive tax abatements, grants or exemptions from certain development rules to win the project.
Media speculation has spotlighted several finalists. The New York Times and other outlets have suggested Denver could be a frontrunner among semifinalists that included Portland, Dallas, Austin, Washington, D.C., and Boston.
San Antonio officials, including Mayor Ron Nirenberg and Bexar County Judge Nelson Wolff, implied in an open letter that Amazon may already have a preferred location. “It’s hard to imagine that a forward-thinking company like Amazon hasn’t already selected its preferred location,” they wrote.
Even before that letter, San Antonio was not widely considered a top contender. Amazon’s criteria emphasize exceptional air connectivity with numerous nonstop flights to hubs such as Seattle, San Francisco, New York and Washington, D.C., which are not San Antonio’s strongest attributes.
Houston’s strengths include two international airports with convenient access to downtown, attributes that align well with Amazon’s travel requirements.
Amazon’s RFP also calls for a headquarters site with strong mass transit connections, including a transit stop at the headquarters location, and at least 500,000 square feet of space ready for occupancy in 2019.