- Nashville just emerged a winner from Amazon‘s drawn-out HQ2 competition.
- The capital of Tennessee didn’t land an HQ2 location like Arlington, Virginia, and Long Island City, New York.
- But Nashville will be the location of a new Amazon operations hub that is set to bring about 5,000 new jobs.
According to the tech giant’s announcement, the center will be situated in downtown Nashville, north of the city’s upscale Gulch community.
“Amazon’s decision to expand its presence in Nashville is a direct result of the talented workforce and strong community we’ve built here,” Nashville mayor David Briley said in Amazon’s official statement. “These are quality, high-paying jobs that will boost our economy, provide our workers with new opportunities, and show the rest of the world that Nashville is a premiere location for business investment.”
So what about Nashville’s proposal tempted Amazon into setting up an operations base there?
In his proposal, Briley touted Nashville’s low property tax rate and low cost of living, as well as Tennessee’s lack of an income tax and low per capita dept.
Here are some of the other biggest takeaways from the agreement:
- Amazon promised to bring about $US230 million in investment and establish one million square feet of energy-efficient office space in Nashville.
- The tech company estimated that it would bring about an incremental tax revenue of over $US1 billion within 10 years.
- Amazon promised to establish 5,000 jobs with an average wage of over $US150,000 within seven years in Nashville.
- If that burst of job creation comes through, Tennessee will reciprocate with a $US65 million cash grant over the next seven years – $US13,000 per job.
- The city of Nashville will also grant the company $US15 million within the next seven years – that’s $US500 per job.
- Tennessee will also sweeten the deal by granting Amazon a $US21.7 million tax credit “to offset franchise and excise taxes” – that’s $US4,500 per new job.
Read more about Amazon’s HQ2:
- Amazon finally explains why it’s cutting its second headquarters in half
- Amazon is essentially creating a new neighbourhood in Virginia for its HQ2
- Arlington, Virginia, lured in Amazon with promises of a helipad and a cash grant of up to $US550 million
- We walked around Long Island City, the New York neighbourhood where Amazon is planning to bring HQ2, and saw why it’d be appealing to the e-commerce giant
- New York City has lured Amazon with more than $US1.5 billion in incentives – here’s what else they agreed to