Amazon has recently announced their top 20 locations for their second headquarters in Northern America, bringing with them 50,000 job opportunities for local citizens and Montgomery County, MD is on its list.
By the end of 2018, Amazon will decide amongst the 20 locations, which include local Washington D.C. and Northern Virginia, to build their five billion dollar headquarters. They are mainly looking for a location with metro, airport, and transit access with a large diverse population. Other factors include affordable housing, education, business opportunity, and lifestyle.
Initially, Amazon took proposals from over 200 cities in Northern America and decided their top 20 based on them. Governor Larry Hogan had backed up Baltimore’s proposal for Amazon, but since they didn’t make the cut, he is now focused on bringing Amazon to Montgomery County.
Hogan has proposed the PRIME act, the second largest offer in the country. The act includes incentives for any Fortune 100 company that is creating a new headquarters in MD employing at least 40,000 people and spending five billion on the project. This proposal will take out ten million per year over the course of 15 years from the state’s sunny day fund. Amazon will also receive an added total of three billion on tax incentive as well as tax credit; Governor Hogan is offering a ten-year annual tax credit which would be 5.57 percent of the salary for each job created. The bid gives Amazon tax exemption from construction materials and two billion dollars to be spent on roads and infrastructure.
Currently, New Jersey has the first largest offer in the country for Amazon bidding a seven billion dollar project. State politicians are working on persuading Amazon to build their second headquarters in their state because the opportunity will benefit the state’s economy and lower unemployment rates.
According to statistics, Amazon’s second headquarters will bring 17 billion dollars to the state’s economy each year. Montgomery County has the education, diversity, and large population of educated people that Amazon is looking for. The state will also benefit from the increase of foreign visitors, international flights, and potentially more exports from the state.
Amazon’s first headquarters is located in Seattle, Washington and it has brought the unemployment rate down and significantly increased the state’s economy. Since Amazon has grown to be a massive electronic commerce company, Seattle is now the largest company city in America.
The increased economy in Seattle has escalated wages, but has increased housing prices that are in a new time high. Amazon’s growth has affected the city’s traffic with increased traffic jams that make no movement in intersecting streets.