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Slick video developed for Amazon paints Vegas as youthful tech hub perfect for company's 2nd headquarters

Michelle Rindels
Michelle Rindels
Economy
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Nevada isn’t making the same extravagant displays of affection as other cities in its quest to lure Amazon’s behemoth second headquarters and some 50,000 well-paid jobs.

But even if it isn’t turning famous landmarks Amazon-orange like New York City, gifting the e-commerce giant a 21-foot cactus like Tucson, or floating the idea of changing its name to Amazona like Phoenix, the state is in the game. It turned in a confidential, 146-page proposal to the company late Wednesday and is formally launching a relatively straight-faced promotional video and social media campaign on Friday.

“We don’t need to sell ourselves ... Amazon does own property here and they’re very familiar with who and what we are,” said Las Vegas Mayor Carolyn Goodman, although she acknowledged “we could’ve sent a couple of our showgirls up there. That just might have turned a head.”

A coalition of Southern Nevada government officials and economic development agencies have been working together to craft an application that promotes the entire region and highlights specific sites in Las Vegas, Henderson, North Las Vegas and the Summerlin community. Amazon put out a request for proposals in September, asking cities to submit by Thursday a case for placing the headquarters in their backyard and snagging the company’s $5 billion investment.

The five-minute video from Nevada is a fast-moving montage portraying the region as a youthful, vibrant, tech-savvy potential site for the company. It highlights music festivals, high-end restaurants, a downtown Las Vegas bike share program, red rock landscapes and the Raiders.

“Las Vegas is a spectacular, fast-track city built on hopes, dreams, and a little bit of moxie,” a female narrator says with a chuckle.

It also points out UNLV’s diverse student body and data center company Switch, and nods to the Oct. 1 shooting that left 58 dead and more than 500 wounded with images of “Vegas Strong” billboards and people donating blood.

“Part of our pitch was to acknowledge that and showcase how the community came together after that,” said Jonas Peterson, head of the Las Vegas Global Economic Alliance. “We’ve shown the entire world how we support our neighbors and friends.”

Business leaders and Gov. Brian Sandoval make their pitch directly to the camera.

“Amazon and Las Vegas are a winning hand,” Sandoval says in closing, standing against a backdrop touting the National Clean Energy Summit.

Amazon officials’ proposal said the company prefers a metropolitan area with more than 1 million people, a stable and business-friendly environment, urban or suburban locations “with the potential to attract and retain strong technical talent” and “communities that think big and creatively when considering locations and real estate options.” The state’s only application is coming from Southern Nevada; Northern Nevada has fewer than 1 million people.

Goodman says she’s cognizant that the company may seek out a site closer to the East Coast  because it already has a West Coast base, but otherwise thinks Nevada has an advantage because it doesn’t impose an income tax, has a warm climate, has an airport close to the urban core and isn’t prone to natural disasters.

The second headquarters is coveted partly because the company promises it will be a full equal to Amazon’s vibrant Seattle location. Economists say such a large project could seed a tech hub that would attract other desirable companies, creating a multiplier effect.

“This definitely beats other deals that I have seen, to be sure,” Enrico Moretti, an economist at the University of California, Berkeley, told The Associated Press. “It would certainly increase the attractiveness of that city for other well-paying high-tech jobs.”

Nevada is no stranger to offering big incentives to companies to lure them to the state, and the practice has its critics who wonder whether the investment pencils out. The state hammered out a $1.3 billion tax incentive deal for electric carmaker Tesla to land its battery factory, a $335 million deal to lure Faraday Future and authorized $750 million in public funds deal to score a Raiders stadium project.

The work of the Nevada Legislature in the 2014 special session has laid groundwork for incentive packages for any large company investing at least $3.5 billion in the state. The Tesla deal included sales, property and payroll tax abatements, as well as transferable tax credits.

“We have in Nevada existing law that we use to build out an incentive package that will scale up and down depending on the timing and level of capital investment that Amazon pursues,” Peterson said. “That allows us to compete for these really large projects, and that wasn’t the case with previous efforts where we had to go into special session and come up with this.”

Steve Hill of the Governor’s Office of Economic Development, who, at Amazon’s request, declined to lay out the specifics of Nevada’s offer, indicated that the state is trying to keep a cool head as it works to persuade the company to settle in Nevada. It doesn’t want to lay out overly generous offers that are simply used by a company to lower another jurisdiction’s price.

“We go into these trying to understand what our boundaries are, what works for the company and also works for Nevada,” he said. “We try not to fall in love with the deal and try to get to the point where the company wants to be Nevada versus trying to buy that desire.”

Hill said he talks on a monthly basis with Amazon, which employs roughly 5,000 people in Nevada and already has three distribution centers at both ends of the state. The company also owns Zappos.com, which is a fixture of the downtown Las Vegas community.

“Amazon has expressed to the governor, me and others that they really like Nevada,” he said. “I think Amazon will continue to grow in Nevada with or without the additional headquarters.

For now, the region plans to continue making the case through a social media blitz that will encourage community leaders to answer the question “Why Vegas?” using the hashtag #Amazon2Vegas. Proponents hope it will grab the company’s attention and land the region on the finalist list before the company makes a decision, presumably in 2018.

“This is a massive project. It’s a game-changer. We want Amazon in Southern Nevada,” Peterson said. “I think we’re going to surprise people. I think we are a good fit. I think we have a powerful proposal coming their way.”

This story was updated at 3:15 p.m. on Oct. 19, 2017 to add additional comments.

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