Unity after shooting part of Las Vegas-area pitch for Amazon
Local governments and the state of Nevada offered online retail giant Amazon a package totaling $800 million in tax savings to build its second headquarters in Southern Nevada.
The Governor’s Office of Economic Development released the full proposal to Amazon on Thursday.
Amazon had required secrecy from governments in exchange for bids to the company for where to build the so-called HQ2, which would come with about $5 billion in investment.
Amazon announced in September its hunt for a site for the so-called HQ2, starting cities salivating at the prospect of up to 50,000 new full-time jobs with average employee pay surpassing $100,000.
Southern Nevada failed to make the cut among finalist cities in January.
Five possible sites
The only publicly known proposal in Southern Nevada before Thursday was 84 acres of land in downtown Las Vegas that would have replaced the current locations for Cashman Center, Cashman Field, the Natural History Museum and Heritage Park.
Other sites Amazon could have taken over include:
100 acres near Summerlin Parkway and 215 Beltway interchange that The Howard Hughes Corp. would have given Amazon for free
350 acres of publicly owned land near the Henderson Executive Airport for which Amazon would pay the city of Henderson $110,000 an acre
150 acres on publicly owned land in North Las Vegas with no dollar amount listed except for “fair market value,” which would go to the federal government to fund parks and nature projects
125 acres of publicly owned land in the southwestern valley
GOED touted Downtown Summerlin’s stores and restaurants, the Vegas Golden Knights training facility, Red Rock Canyon and Summerlin’s housing opportunities among the reasons to locate in the west valley.
The West Henderson site is between the Henderson Executive Airport and Inspirada Town Center, on 350 acres the city owns. The pitch called the area a “blank canvas for a premier employment center,” with three nearby master planned communities and the future headquarters of the NFL’s Raiders. Henderson touted parks, trails and an “efficient development process.”
If North Las Vegas had lured Amazon, the campus site proposal was 150 acres next to the VA Hospital, and across the 215 Beltway from a future UNLV campus expansion.
The proposal touts the shovel-ready site as “expansive, adventurous and connected,” and North Las Vegas leaders’ “get it done” attitude.
The pitch for the Rainbow Beltway location extolled the southwest valley’s existing tech centers, including Switch’s Innevation Center and the under-development UNLV Harry Reid Research and Technology Park. The 75-acre site is within the fastest growing area in the valley, and close to several master-planned development areas.
Shooting mentioned in proposal
A major part of the state’s attempt to woo Amazon focused on what Nevada lacks — low risk for natural disasters, a low minimum wage and limited regulations regarding employee leave, compensation and benefits.
Lower taxes also meant the state may provide fewer economic incentives compared to other places for Amazon to build in the Silver State.
Nevada has no corporate or personal income tax, inventory tax, unitary tax, special intangible tax, estate tax or inheritance tax. Clark County has an 8.25 percent retail sales tax and .82 percent average property tax.
The state has a commerce tax of at least .051 percent on business revenue from in-state customer sales over $4 million a year.
Nevada also has a 1.475 percent business payroll tax on taxable wages, not including health care deductions, over $50,000 a quarter.
“While Nevada certainly encourages both probusiness and pro-employee policies, the state has long held the belief that owners and operators know more about how to run their businesses than governments,” the proposal said. “Market-based competition leads to creative, sustainable and balanced strategies for businesses, their employees and their customers.”
A letter signed by Gov. Brian Sandoval, Clark County Commissioner Steve Sisolak and the mayors of Las Vegas, Henderson and North Las Vegas said the violence of the Las Vegas Strip shooting that killed 58 people and wounded hundreds brought the community together instead of tearing it apart.
“This city demonstrated the very essence of what makes a community great — people caring for one another,” the letter said. “This community, like our nation, is not defined by its tragedies but by its resiliency and its resolve. We believe this to be among our greatest strengths.”
As part of the proposal, the governments created a website, hq2.vegas. The website remains password protected from public view.
The proposal includes an endorsement from Tony Hsieh, CEO of online shoe seller Zappos, bought by Amazon in 2009.
“We’re able to attract and retain top talent in the fields of technology, analytics, and more by offering competitive wages and benefits,” Hsieh said in the proposal. “We strongly believe that you will be able to do the same given the favorable cost of living and juxtaposition to technical conferences and events.”
Contact Wade Tyler Millward at (702) 383-4602 or wmillward @reviewjournal.com. Follow @wademillward on Twitter. Review-Journal staff writer Jamie Munks contributed to this report.
