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Application release offers a glimpse into Southern Nevada's failed strategy to attract Amazon headquarters

Michelle Rindels
Michelle Rindels
EconomyLocal Government
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A sign for an Amazon distribution center, including the company's logo

The City of Las Vegas was willing to give Amazon 84 acres of land for free, including the shuttered Cashman Center events complex, library and closed-down Reed Whipple Cultural Center, if it decided to locate its massive, planned second headquarters downtown.

Beyond that, economic development officials said the value of various government incentive programs available to the company for a project of that size would have been worth $800 million.

The downtown property was one of two free land offers made in a 146-page application — released publicly on Thursday — that Southern Nevada submitted to the online commerce behemoth in October before the Las Vegas area was eliminated from a highly competitive contest. The other free site was about 100 vacant acres owned by the Howard Hughes Corporation in Summerlin just west of the 215 Beltway.

Amazon’s announcement that it wanted to invest $5 billion in an 8 million square foot campus that would employ 50,000 attracted fevered competition and 238 applications. Some cities offered massive incentive packages: Newark, New Jersey offered $7 billion in perks, for example.

Nevada officials kept their approach more low-key in their application, which was drafted in the aftermath of the Las Vegas Strip mass shooting.

“You will notice our submittal contains relatively few comparisons to other markets,” it says. “We believe there is more to be gained in partnership than in competition.”

Amazon has since whittled down its list of finalists to 20: Toronto, Columbus, Indianapolis, Chicago, Denver, Nashville, Los Angeles, Dallas, Austin, Boston, New York City, Newark, Pittsburgh, Philadelphia, Montgomery County in Maryland, Washington D.C., Raleigh, Northern Virginia, Atlanta and Miami.

In addition to offering a lengthy guide to the services and amenities Southern Nevada has to offer, the packet makes the case for five potential sites for the massive planned second headquarters.

While the application laid out the abatements that the state is willing to offer companies who are relocating or expanding in Nevada, it doesn’t appear to offer any special tax incentives unique to Amazon but points to a package that would look like what Nevada lawmakers developed to attract Tesla.

“Based on the information provided in the RFP, Amazon HQ2 will meet the requirements necessary to qualify for Nevada’s $3.5 billion investment tax abatements,” it says. “These include an exemption in sales tax for investment at the property site for 20 years, a 10 percent real and personal property tax abatement for 10 years and a 100 percent payroll tax abatement for 10 years.

It also touts its low-tax environment, transferable tax credits, local government incentives and access to the state’s “Workforce Innovations for the New Nevada” customizable program to build a pipeline of skilled workers.

The packet prominently features the Downtown Las Vegas option, using artists’ renderings and Amazon founder Jeff Bezos’ language and theory of urban planning to make the case.

“The City of Las Vegas envisions this downtown campus location to become a ‘City as a Service’ for Amazon,” it says, pointing out that Amazon-owned Zappos.com has a major presence in the area. “Amazon would not need to build ancillary space as Donwtown Las Vegas already has more than 50 restaurants and a dozen full-service hotels within walking distance of the site.”

“Downtown Las Vegas is a historic and iconic landmark,” the packet reads. “HQ2 would be well positioned as a corporate headquarters. Amazon will be able to capture the energy of Las Vegas.”

Placing Amazon’s headquarters at Summerlin west is described as “the perfect complement to a community lifestyle in one of the nation’s most successful master-planned communities.” The application also proposes “a unique opportunity to collaborate on a 90-acre central park adjacent to the proposed HQ2 campus.”

The proposal also suggested a 350-acre site in West Henderson that is owned by the City of Henderson and would be available for fair market value of about $110,000 an acre.

“The greenfield site is truly a blank canvas amidst a unique, natural desert landscape,” reads the application, which goes on to tout the city’s trail system, 64 parks and master-planned housing developments.

Another proposed location is a 150-acre site in North Las Vegas next to the Veterans Administration hospital and across from the 215 Beltway, about 10 minutes from Amazon’s existing fulfillment center. The land, which was deeded from the Bureau of Land Management to the City of North Las Vegas, would go for fair market value but the proceeds would fund parks and nature projects through the Southern Nevada Public Lands Management Act (SNPLMA).

“The proposed site affords Amazon the ability to transform undeveloped land into new works of art in an underdeveloped part of the urban Las Vegas valley,” the packet reads, adding that the site will allow Amazon “the opportunity to be unconstrained in its footprint and adapt to its needs today and 20 years from today.”

The fifth option is the Rainbow Beltway Center, a 75-acre plot in Southwest Las Vegas that’s owned by the Clark County Department of Aviation and would go for fair market value. The application touts it as close to the 215 Beltway and a Union Pacific Railroad line.

It ends with several questions about how Amazon might be able to grow into Southern Nevada:

  • “Could PrimeAir headquarter PrimeAir pilots in Nevada to reduce labor costs by avoiding Kentucky’s personal income tax?”
  • “Nevada is one of only two states that permits an industrial banking charter to be owned and operated by a commercial company. This would allow Amazon to offer customers any bank product and service (except for commercial checking accounts).”
  • “Southern Nevada has room to grow. Bureau of Land Management land releases allow for large tracts of land to be nominated for release and converted to private use. This presents opportunities for Amazon relative to renewable energy, product testing and future expansion.”

 

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