Why wasn’t Arizona chosen for Amazon’s second headquarters?
Jan 21, 2018, 3:27 PM | Updated: 5:39 pm
(AP File Photo)
(AP File Photo)
PHOENIX — At least five Arizona cities placed their metaphorical hats in the ring in an effort to become the home of Amazon’s second headquarters, but none of them made the cut.
Now that the list has been narrowed down to nearly two dozen contenders, there is still one question left on the table: Why wasn’t Arizona chosen?
According to the Phoenix Business Journal, one of the reasons could be that Arizona does not offer tax breaks and subsidies to companies that chose to relocate here.
John Boyd, a national site-selection and economic development expert, told the publication that Arizona often competes with several of the markets that did make the list, but its lack of incentives likely hurt its chances.
Another reason that Amazon could have passed on Arizona, according to Boyd, could be due to geography. Markets in Eastern and Central time zones allow Amazon to have “better logistical coverage” and “recruit more talent.”
“I really think there is a center or gravity in this thing,” he said.
Amazon already does business in Arizona: It has technology operations in Tempe and distribution centers in Goodyear, Phoenix and Chandler, employing about 6,000 people.
However, not everyone is upset with the snub: Tom Jenney, a senior legislative advisor for Americans for Prosperity in Phoenix, said giving special tax breaks to big companies would be “corporate welfare.”
“Arizona has no need to play the subsidy game. We don’t need to bribe companies to relocate here,” Jenney told the publication.
