SEATTLE NEWS ARCHIVES & FEATURES

Reading between the lines of Amazon’s HQ2

Sep 14, 2017, 6:02 AM

Amazon, package thief, Prime Day...

(AP Photo/Patrick Semansky)

(AP Photo/Patrick Semansky)

Perhaps no one in Seattle watches the Northwest tech industry closer than GeekWire’s Todd Bishop. As he watched Amazon announce its plans for a second headquarters outside of Seattle, he noticed something between the lines.

“I think this is a wake-up call for the leaders of Seattle to step back and say, ‘OK, are we going to be the kind of place that lets these big companies get away? Or are we going to be the kind of place that creates the infrastructure, the housing, the transportation that these companies need? And the rest of the community needs,” Bishop told KIRO Radio’s Ron and Don. “And I do think that Amazon was, in part, sending a message. There’s a lot more to it, but that is one of the things that they are doing.”

RELATED: How NIMBYs could harm Seattle’s tech boom

As of Tuesday, Amazon has said that it has no “front-runners” for cities to expand into and that all the cities they have heard from across the nation are being considered equally.

One of those cities is reportedly Tacoma, just south of Seattle. Bothell and Everett have also been mentioned. They all boast much of the requirements Amazon has asked for: near an international airport; near major highways; access to mass transit. Not to mention the many empty properties ripe for development throughout Tacoma.

Washington’s Governor Jay Inslee has even reached out to the company to “better understand” its needs for HQ2.

But there is actually much more to Amazon’s HQ2 announcement than the mere requirements it posted, according to Bishop.

Amazon: Between the lines

Amazon is a major contributor to the region’s growth, drawing thousands of new workers to the area and boosting the economy. There are some, however, who have argued that Seattle’s relationship with tech companies could be more fragile than many believe.

Windermere economist Matthew Gardner used Amazon as an example of how a big company could leave if Seattle couldn’t reign in the rising cost of living — which contributes to how much companies have to pay employees. That’s a considerable cost of doing business in town.

Former Microsoft CEO Steve Ballmer also had similar warnings of an “unfavorable business climate” in Seattle, noting the recent efforts to establish an income tax on the city’s top earners. Councilmember Kshama Sawant has been vocally opposed to that argument.

Amid this back-and-forth, Amazon announced that it is seeking a city equal to Seattle to build a $5 billion second headquarters in North America. Amazon is asking for cities to bid on the plan.

Bishop notes in a recent column that Amazon doesn’t have to ask for such bids, and the announcement is partly a “publicity stunt.” It knows exactly which cities can provide what it needs. Therefore, the announcement wasn’t just about putting the word out. It was about showing Seattle leaders that it can take its business elsewhere.

“I certainly think that’s the subtext, yes,” Bishop said. “If you read through, one of the points in their FAQ – frequently asked questions – that caught my attention was a quote about why they are doing this. Essentially, they said they are looking for a community that will welcome and work with them. To me, the implication of that was they are not getting that in Seattle.”

Please follow our Community Guidelines

Temporary fencing is seen at East Potomac Park, Saturday, Nov. 14, 2026, in Washington. (AP Photo/T...

Associated Press

Judge temporarily blocks Trump from moving ahead on Washington public golf course redevelopment

WASHINGTON (AP) — A federal judge on Saturday ordered a temporary stop to any work at a historic Washington public golf course not far from the White House, blocking for now President Donald Trump’s push to redevelop the site along the Potomac River into a championship-level venue. U.S. District Judge Ana Reyes issued the temporary […]

2 hours ago

FILE - Richard Sterban of The Oak Ridge Boys performs during the All for the Hall concert, April 10...

Associated Press

Richard Sterban, member of the celebrated country and gospel group The Oak Ridge Boys, dies at 83

Richard Sterban, the bass vocalist of the Grammy-award winning gospel quartet The Oak Ridge Boys and a country music hall of famer, died Saturday, his family and the band said in a statement. He was 83. Sterban, who had been with the band since 1972, died in Hendersonville, Tennessee, due to complications from bronchitis and […]

2 hours ago

SpaceX's mega rocket Starship lifts off for a test flight from Starbase, Texas, Friday, Nov. 13, 20...

Associated Press

SpaceX’s Starship returns from orbit and is captured by launch pad arms in a dramatic first

CAPE CANAVERAL, Fla. (AP) — SpaceX’s Starship made a triumphant return to Earth on Saturday, caught in midair by giant mechanical arms where its journey began 22 hours earlier. It was the grand finale that Elon Musk and his team hoped for — the first-ever capture of a Starship flying back from space. But with […]

6 hours ago

Associated Press

New Orleans port sues to get control of tanker that crashed into cruise ship on Mississippi River

Just hours after a tanker in New Orleans lost its steering and slammed into a docked river cruise boat, the city’s port sued to make sure federal investigators can seize the vessel that is owned by a subsidiary of a Chinese company. All 197 passengers and crew on the American Heritage cruise ship survived Friday […]

8 hours ago

The control tower is seen at Washington Dulles International Airport after the Federal Aviation Adm...

Associated Press

Why a problem on the ground can affect flights thousands of miles away among other issues

Regional U.S. air traffic control centers communicate using a complex network that’s “one of the largest telecommunications systems in the country,” and disruptions like those seen on Friday with an hourslong, nationwide grounding of flights can reverberate widely, according to an aviation expert. Michael McCormick, a former airspace manager with the Federal Aviation Administration, said […]

8 hours ago

Associated Press

At least 6 killed and 11 injured when bus overturns in southwestern Colombia

BOGOTA, Colombia (AP) — A bus overturned Saturday on a highway in southwestern Colombia, killing at least six people and injuring 11, the National Police said. A police report seen by The Associated Press said the driver may have briefly fallen asleep at the wheel, causing the incident. Videos shared on social media showed emergency […]

8 hours ago

Reading between the lines of Amazon’s HQ2