Winnipeg doesn’t make Amazon’s HQ2 shortlist

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This article was published 18/01/2018 (2602 days ago), so information in it may no longer be current.

Despite learning Winnipeg had lost out on becoming home to Amazon’s second North American headquarters, local leaders were surprisingly upbeat Thursday.

Amazon.com Inc. released its shortlist of locations still in the running for its proposed HQ2, and the estimated 50,000 new jobs accompanying it. Toronto was the only Canadian city on the list of 20 remaining candidates.

“I always prefer to win than lose. I’m disappointed,” said Dayna Spiring, chief executive officer of Economic Development Winnipeg. “But at the same time, I’m so proud of what we put forward.

“We built a proposal for Amazon that was recognized across North America. It made the front page of the Seattle Times” — the city where Amazon is based.

Winnipeg’s bid, together with its cute, quirky, but informative video, got widespread traction on social media. The video features entrepreneur and former Winnipeg Blue Bombers offensive lineman Ibrahim (Obby) Khan giving a tour of the city to an Amazon Echo smart speaker.

“Whether Winnipeg made the shortlist or not, (Amazon founder and CEO Jeff) Bezos knows where Winnipeg is. We win on that front,” Spiring said.

Amazon’s announcement last September it was searching for a location for a second headquarters triggered offers of tax cuts and incentives from cities across the continent. Amazon, which also makes consumer electronics, is the world’s biggest online retailer.

Along with Toronto, the shortlist of potential locations announced Thursday includes: Atlanta; Austin, Tex.; Boston; Chicago; Columbus, Ohio; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Md.; Nashville; Newark, N.J.; New York; Northern Virginia; Philadelphia; Pittsburgh; Raleigh, N.C.; and Washington, D.C.

(Manitoba business people speculated Toronto may have made the list because most of the shortlisted cities are clustered in the U.S. northeast.)

Despite the result for Winnipeg, the exercise of putting together a bid served to make many business and community leaders realize how much the city has to offer.

“We were able to showcase to some of the existing Winnipeg businesses all of the new and innovative things happening here,” said Spiring.

Manitoba capital is on the cutting edge of artificial intelligence research and other technology, she said.

Hundreds of programmers and coders are arriving each year to fill the pipeline for companies such Skip the Dishes, she said. Packaging heavyweight Winpak Ltd. is already using part of the Winnipeg Amazon bid in an effort to attract talent.

The bid highlighted Winnipeg’s strengths such as its central location, low corporate income tax, diverse and educated workforce, inexpensive and available land, and space for expansion. The bid called Winnipeg “the least expensive city to operate a tech company.”

Winnipeg Chamber of Commerce president Loren Remillard was proud the city’s offer wasn’t a sell-out, with a shopping cart full of tax breaks and subsidies.

“The bid played Winnipeg’s best cards. We don’t need taxpayers to open their wallets,” Remillard said, referring to some of the massive subsidies being offered by some American bidders. For example, New Jersey offered US$7 billion in incentives.

Remillard summed up his feelings with a famous quote from NHL legend Wayne Gretzky. “You don’t score on 100 per cent of the shots you don’t take.”

“I know some people question Winnipeg’s bid, but I’m not one of those,” Remillard said. “I think it was important Winnipeg submit a bid. I think it showed the strengths of Winnipeg and put our best foot forward.”

The proposed Amazon headquarters is estimated to be worth US$5 billion to the winner, the game-changer of all game-changers for the chosen city.

“The magnitude of this is unchartered territory for a city, and the reason so many cities (238) submitted,” said Remillard.

Mayor Brian Bowman said in a prepared statement Thursday he is “proud of the unified proposal put forward on behalf of the City of Winnipeg and province of Manitoba. The competition was fierce, but our bid positioned Winnipeg well for future opportunities.”

Bowman added he is “optimistic Amazon and other companies took note, and will keep Winnipeg in mind for future opportunities.”

bill.redekop@freepress.mb.ca