Austin Reportedly Out Of The Running For Amazon HQ Project

AUSTIN, TEXAS — Austin might not be landing the second Amazon headquarters after all — the coveted economic development project dubbed HQ2 — as company officials instead engage in "advanced discussions" about building the site in Northern Virginia, according to a published report.

According to the Washington Post, Amazon representatives have talked to city leaders in Crystal City, Va., not only about their landing the plant over 20 finalist municipal contenders but also with great specificity into how quickly employees would be moved there, the buildings the headquarters would occupy and how an announcement about the move would be made to the public, according to sources.

That level of talks is far more detailed than discussions the company has had to other cities in the running to land the plant, the Post noted. The highly sought project would have a multi-billion-dollar economic impact and create some 50,000 jobs. Austin is one of less than two dozen cities to have made the finalist cut in being considered to house the massive facility.

"The company is so close to making its choice that Crystal City’s top real estate developer, JBG Smith, has pulled some of its buildings off the leasing market and officials in the area have discussed how to make an announcement to the public this month, following the midterm elections," the newspaper reported, citing public and private-sector officials who spoke on the condition of anonymity given Amazon's penchant for secrecy as it relates to the selection process.

And yet, there's a glimmer of hope for Austin in the same report: "The company may be having similar discussions with other finalists." Dallas also made the 20-city finalist cut with Austin. And in a separate report, CNBC reported Austin might still be in the running or may somehow split the plum Amazon headquarters project with Northern Virginia.

In a separate report on Monday, Nov. 5, the Wall Street Journal reported that Amazon officials might very well opt to divide HQ2 into two parts — with the two winning cities dividing the spoils of victory. Caveat: The Journal bases its speculation on a single source it describes as "...a person familiar with the matter."

If true, the decision to split HQ2 into two parts as an augment to its existing Seattle headquarters would be predicated on the ease of recruiting ample high tech talent while keeping an eye on the availability of housing stock and superior infrastructure. If thus divided, the HQ2 workforce would amount to 25,000 employees in each city.

But even in that scenario, Austin isn't central. The Journal reported on Sunday that Amazon was in late-stage discussions with officials in Crystal City, Va., Dallas and New York City, with Austin not even warranting mention in the business publication's report. The newspaper reports that a decision could be announced come as early as this week, according to unnamed "...people familiar with the matter."

Amazon officials are mum in terms of confirming the various reports, saying a formal announcement is still scheduled for later this year. But officials are displeased details are being leaked ahead of the official HQ2 pick, as expressed by Mike Grella, Amazon's director of economic development, who chastised the information leakers in the reports' wake via Twitter: "Memo to the genius leaking info about Crystal City, VA as #HQ2 selection. You’re not doing Crystal City, VA any favors. And stop treating the NDA [non-disclosure agreement] you signed like a used napkin."

Related stories:

Austin Enters The Race, Submitting Its Proposal For Amazon HQ Project

Austin Among Finalists To Land Amazon Headquarters

If Austin Lands Amazon H2: What Would It Be Like To Work There?

Austin Rents Would Rise If City Gets Amazon's Second Headquarters Site

Amazon founder and chief executive officer Jeffrey P. Bezos also owns the Washington Post. At a conference in New York on Thursday, the Post reported, Bezos said the decision would be made through intuition after amassing vast amounts of data for study. Then, Bezos said at the conference "... you immerse yourself in that data but then you make the decision with your heart.”

Twenty finalist cities, including Austin, have spent considerable time and expense pursuing the project even without the benefit of substantive insight into which of the cities has the upper hand. Tax breaks and new road/infrastructure construction would be among inducements offered by the finalist cities, including offers to expand or build roads, transit systems, data networks and even airports should Amazon select them.

Local market observers viewed Austin's landing of the Army Futures Command in July as a positive harbinger of its likelihood in landing HQ2. In securing that highly sought project, Austin emerged the winner among five finalist municipalities culled from a list of 150 original contenders. The ambitious new Army function aimed at military modernization techniques is headed up by a four-star general and will ultimately employ some 500 military personnel.

Yet even before the Post story, stock market investors, betting sites and corporate relocation experts have all given the best odds of landing the headquarters site to Northern Virginia.

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