Perspective

How Cities Can Strike a Win-Win Deal for Amazon HQ2

City leaders do a shocking disservice to their citizens and their city if they give Amazon a free ride by offering incentives packages that solely reduce the firm’s costs. There are things they can and should do to advocate for their constituents’ interests.

New investments surrounding an Amazon headquarters could drive up housing costs, displace low-income families, strain the transportation network, and widen the gap between rich and poor residents, if Seattle's experience is any guide.Elaine Thompson/AP

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By Amy Liu

January 24, 2018 at 11:58 AM EST

The mayors and civic leaders in the 20 places that made the cut to host Amazon’s second headquarters, known as HQ2, are boasting with pride and understandably so. In one of the highest-profile corporate site selection competitions in history, and against hundreds of competitors, an iconic tech firm has validated their communities as hubs of talent, innovation, and quality living.

The competition now intensifies, with cities under immense pressure to bring their best game. The prize is seductive: An innovative firm with 50,000 knowledge workers that will cement a region’s place in the digital economy. At the same time, leaders are bracing for an inter-state competition that could shatter incentives records and test their resolve to deliver inclusive economic growth.

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Before it’s here, it’s on the Bloomberg Terminal

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