Amazon opens bids for $5 billion 2nd HQ

Amazon said on Thursday it would build a $5 billion second headquarters in North America that would cost at least $5 billion to construct and operate and will employ as many as 50,000 workers.

The announcement set off an immediate scramble by cities across the US to win the contract for the project.

"We expect HQ2 to be a full equal to our Seattle headquarters," Amazon Chief Executive Jeff Bezos said in a statement. "Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. We're excited to find a second home."

The company said it wants a city of more than one million people that are within 45 minutes of an international airport, and good mass transit. In addition, "a highly educated labor pool is critical and a strong university system is required" in the area, Amazon said in its request for proposal from potential bidders.

"We want to invest in a community where our employees will enjoy living, recreational opportunities, educational opportunities, and an overall high quality of life," the company added.

And the company wants tax credits and other incentives, from land to fee cuts to relocation packages. In return, it promised up to 50,000 jobs averaging more than $100,000 in annual compensation over the next 10 to 15 years.

Wisconsin's legislature recently voted to give Taiwanese manufacturer Foxconn a $3-billion incentive package to build a $10-billion liquid crystal display factory in the state.

Amazon said it was seeking proposals by Oct 19 and would select the location next year.

With sales of $136 billion last year, Amazon is the world's biggest e-commerce company by market cap. It employs about 380,000 people worldwide. It increased its US work force to more than 180,000 employees at the end of 2016, from 30,000 in 2011.

Reuters