Loading...
HomeMy WebLinkAboutEDA Packet 09.19.17AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, September 19, 2017 5:00 PM 5:00 pm 1. Call to Order 5:01 pm 2. Roll Call (Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt) 5:02 pm 3. Approval of Minutes • EDA Meeting of August 15, 2017 5:03 pm 4. Discussion on 165th Street Improvements 5:15 pm 5. Discussion on 2040 Comprehensive Plan • Economic Development Chapter 5:15 pm 6. Discussion on Amazon HQ2 RFP 5:15 pm 7. Update on Property Owner Meetings 5:30 pm 8. Update on Downtown Redevelopment 6:30 pm 9. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, SEPTEMBER 19, 2017 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the August 15, 2017, EDA meeting as presented. 4. DISCUSSION ON 165TH STREET IMPROVEMENTS During Comprehensive Plan public engagement process staff has received inquiries from property owners along 165th Street on how/when sewer and water will be extended to their property. Property owners, more specifically guided as Industrial, have stated that it is very difficult to develop their property without the sewer service. Staff would like to discuss the inquiries with the EDA. 5. DISCUSSION ON 2040 COMPREHENSIVE PLAN This year the City has been working on development the 2040 Comprehensive Plan. One of the chapters includes economic development. Staff will present to the EDA the existing plan, what we have heard from the public, and some new ideas that could be included in the plan. 6. DISCUSSION ON AMAZON H02 RFP Recently Amazon has released an Request for Proposal (RFP) for a new location for a second headquarters. Staff will provide background on the RFP to the EDA. 7. UPDATE ON PROPERTY OWNER MEETINGS Staff is been meeting with property owners on the status of their property and what their desires are for the property in the future. Staff will provide an update the on the meeting to date. Staff will continue to meet with more property owners. 8. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will provide an update on downtown redevelopment at the meeting. MINUTES FOR THE EDA MEETING OF AUGUST 15 2017 Weidt called the meeting to order at 5:00 pm. PRESENT: Denaway, Houle, Klein, Petty, Weidt. ABSENT: Gallivan, Puleo STAFF: Rachel Juba, Planner Rachel Leitz, Community Development Assistant APPROVAL OF MINUTES FOR THE EDA MEETING OF JUNE 20, 2017 Klein made a motion, Petty seconded, to approve minutes for the EDA meeting of June 20, 2017, All Ayes. Motion carried. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT Juba stated that as part of Washington County's economic development strategic plan they are working on putting together a plan to increase levy money to allow for a $150,000 grant program to help with economic development. This grant would help with pre -development work, which could assist in a variety of aspects: environmental studies, legal research, site plan design, engineering, transportation market, feasibility studies, incentive planning, etc. Washington County is planning to allow a maximum of $50,000 per application and are asking for support for $150,000 per year to allocate to this program. UPDATE ON PROPERTY OWNER MEETINGS Juba reminded the EDA that staff has been reaching out to property owners in Hugo. Staff has been going through this effort to get updates on the property owner's vision for the future of their properties. Staff has expressed their support for the property owners and stated the City is willing to assist them in their future plans or with any questions they have, especially while going through the 2040 Comprehensive Plan Update. Juba stated that staff will continue to update the EDA as meetings with property owners continue. UPDATE ON DOWNTOWN REDEVELOPMENT Staff provided an update to the EDA on downtown redevelopment. ADJOURNMENT Klein made a motion, seconded by Houle, to adjourn at 5:45 pm. All ayes. Motion carried. 5 2040 Comprehensive Plan — Ideas for Additions to the Economic Development Chapter What we heard • Need Downtown/Main Street Shopping • Hugo has low taxes • Great Proximity to 1-35E and the Twin Cities • The City should work with Lino Lakes to development the quadrants of 1-35E • Existing businesses, especially downtown, are a resource • There is a lack of restaurants/entertainment uses • Good infrastructure (trails, parks, roads, utilities) • The City should support business development and increase commercial tax base • Need more corporate business for a day time population • The City has done a good job planning commercial and residential • No transportation options • The vision of Hugo needs to include business development • The business development and plan for downtown Hugo needs to be something that can be executed Urban Land Institute (ULI) MN — Navigating your Competitive Future Workshop • Economic development is about what a community has rather than what it lacks • Hugo is on the periphery of the metro area industrial and retail market and development opportunities in other areas may need to be absorbed first • Hugo has done a great job of not forcing development before the market is ready • The number of medical/dental uses is impressive and provides a foundation for other related uses • Data centers may be an economic development opportunity for the City. • Small manufacturing startups are typically looking for existing buildings rather than development opportunities • The economics of housing often make new market rate rental projects difficult in many settings • Mixed use development, with housing as an integral part, may be a desirable use in the downtown area • It's OK to say no • Successful communities develop a clear vision, react appropriately to opportunities, create innovative financial tools and leverage their key assets • Involve the Next Generation in decision making • The City's involvement in (re)development can take many forms • Not all communities need to or should look the same. Work to preserve Hugo's character and amenities • Capitalize on Hugo's assets as a brand — "an urban environment in a rural setting." • Hugo has and should continue to manage its growth in a disciplined way. All good retail grows "organically" and is not forced prematurely New Ideas /Additions • Washington County o Economic Development efforts o Open to Business Program • Workforce o Access to jobs analysis — how to attract talent Encourage Quality Planning and Buildings o Efficient process for approval o Place -making efforts o Creative ideas for planning and business incentives o Creating a place where people want to live ■ Attracting businesses to the City WHAT IS ECONOMIC COMPETITIVENESS AND WHY IS IT IMPORTANT? Regional economic competitiveness refers to the ability of a region to compete effectively and prosper in the global economy. Decision makers who guide local comprehensive plans will strengthen the competitiveness of our region by sharing and growing knowledge and information about the regional economy, the major industries and employers in their community and region, and the needs and challenges of their employers and workforce. The region's competitiveness will be enhanced by individual communities that leverage regional information to plan for and provide competitive sites for economic growth, infrastructure, and the amenities needed to attract, retain, and grow businesses and a talented workforce. Relative to the nation's other major metro areas, the Twin Cities rate of regional employment growth underperformed during 2000- 2010, and continues to be outpaced as our nation emerges from the recession (figure 1). In addition, the region ranks in the bottom half of the nation's top 25 largest metro areas in Gross Metropolitan Product (GMP, ranked 13th) as measured in 2013, growth in per capita personal income (ranked 13th) as measured from 2010 to 2013, and average wage per job (ranked 14th) as measured in 2013'. In light of these trends, a consensus has emerged among regional leadership that a strong collaborative effort to advance our economy in the future is a necessity. Individual communities will suffer if the overall region becomes less competitive over the long term, and will share in the prosperity of an increasingly prosperous and competitive regional economy. FOCUSED INFORMATION AND RESEARCH SOUTH LOCAL PLANNING HANDBOOK Tampa -St Petersburg -Clearwater, FL 7% Atlanta -Sandy Springs -Marietta, GA 9% Miami -Fort Lauderdale -Pompano Beach, FL 30% San Antonlo-New Braunfels, TX 10% Dallas -Fort Worth -Arlington, TX 12% Orlando-Klssimmee-Stanford, FL 12% Houston -Sugar Land -Baytown, TX 14% WEST Los Angeles -Long Beach -Santa Ana,CA 7% San Diego -Carlsbad -San Marcos, CA 8% San Francisco-Cakland-Fremont, CA 8% Phoenix-Mesa-Glendale,AZ 9% Portland-Vancouver-Hillsborc,OR-WA 10% Seattle -Tacoma -Bellevue, WA 10% Riverside -San Bernardino -Ontario, CA 10% Denver-Auraroa-Broomfield, CO 12% NORTHEAST Philadelphia -Camden -Wilmington, PA -NI -DE -MD 2% Pittsburgh, PA 3% Washington -Arlington -Alexandria, DC -VA -MD -WV 3% Baltimore -Towson, MD 5% NewYork-Northern New Jersey -Long Island, NY -M -PA 6% Boston -Cambridge -Quincy, MA -NH 6% MIDWEST N6nneaporis-Saint Paul-Bkwirnkron, MN -WI A 7% Saint Louis, MOIL 4% ChicWJoliet Naperville, IL 6% Detroit Warren Livonia, MI 9% Top 25 largest metro areas B% Figure 1— Employment growth between 2010 and 2014 for the 25 largest metropolitan areas in the U.S. (by region). Source: Bureau of Labor Statistics, Quarterly Census of Ernployment and Wages, 2010 and 2014. A region that is economically competitive is one whose economy performs at least as well as other economies. This performance can be measured any number of ways, including comparing employment rates and employment growth, income levels and income growth, patents, exports, and gross domestic product. This information reveals a region's economic strengths and can help to focus a region's strategy for advancing economic prosperity. In addition to tracking the region's performance relative to other regions, individual communities and the region as a whole can benefit from a shared understanding of primary factors that influence economic performance. Building upon the economic research and development strategy prepared by GREATER MSP in 2013, the Metropolitan Council provides the Twin Cities region with additional information and research capacity, specifically focused on six topics which are mentioned on the next page: Continue to next page 1. .Key iniustry clusters. Localized traded industry sector information developed by GREATER MSP and the Humphrey School, and partnership with communities to analyze the strength and geography of traded industry sectors in the seven -county region. 2. Real estate requirements of key industry clusters. Documentation of real estate requirements and preferences of industry sectors that drive the regional economy. 3. Sites for economic growth. Partnership with communities/counties to devise an approach for local governments to identify the property inventory and long term absorption trends for property types important to the region's key industry clusters and start-up enterprises with potential to export a product or service from the region. Communities choosing to use such an approach could identify the availability of development and redevelopment sites that: • Meet the site location criteria of the region's key industry clusters, including land use, workforce, transportation, infrastructure; and • Offer accessible employment opportunities to the region's population. 4. Freight and logistics. Identification of freight transportation and logistics facilities and corridors, and other infrastructure facilities that provide critical links between the region's key industry clusters and the global economy; identify problem areas and opportunities to strengthen system efficiency and regional economic competitiveness. 5. Occupations. Analysis of the occupations associated with traded industry sectors and the geography of these occupations in the seven -county metro area by worksite and resident location. 6. Access to jobs. Identification of industries and respective occupations that provide living -wage employment and wage improvement opportunities for populations with limited educational attainment. Identify and map the locations of these industries relative to Areas of Concentrated Poverty (ACPs) and Areas of Concentrated Poverty where more than 50 percent of the residents are people of color (ACP50s). Analysis of the balance of workforce supply and demand in proximity to ACPs and ACP50s. Documentation of the location of training programs and workforce services that can prepare workers for entry into key industry sectors. .... _.... ........... . ...... 1. Data compiled from U.S November 2014) of Commerce, Bureau of Economic Analysis — GDP & Personal Income Regional 390 Roberta Coaxal Main' 65.291. 1000 DU 390 Robert Strep North TTY: 651291.0904 Saint Paul, MN 55101 Pubk Information' 651.602.1500 pubficJnfo@rnft.state.rnn.us metrocouncit,org M FTRO]POL1-1AN C 0 u N ' , Cxisfi�j o`1G30 blah 5 Chapter 6: Economic Development Plan 6.1. INTRODUCTION In 2004, the City reorganized its Economic Development Authority (EDA) into a seven member advisory group including the Mayor and one City Council member. As an advisory commission to the City Council, the EDA is responsible for attracting economic growth and development, retaining businesses, and assisting with the expansion of existing businesses within the community. The EDA recommends economic development policies and economic financing incentives to the Council, and works to promote the City. The EDA has prepared this long-range strategic plan for economic development within the City. 6.2. PURPOSE The purpose of this plan is to expand and enhance the City's commercial and industrial base. The City's goal is to establish a healthy, thriving business community that will maintain and enhance the City's high quality of life. An expanded business community will provide an expanded tax base, increased local employment, a greater variety of jobs, and a full range of goods and services for its citizens. 6.3. BACKGROUND AND BUSINESS CLIMATE Downtown Hugo Historically, the City's business community has been concentrated in the downtown area of Hugo. The majority of the City's retail and service businesses are still located in the downtown area. The downtown area contains approximately 145,000 square feet of commercial space occupied by approximately 41 businesses. The retailers include both neighborhood convenience businesses and specialty retailers. There are a variety of automotive uses as well as service businesses in the downtown. Most of the businesses are independently owned local businesses with very few national chains or franchises. Downtown Hugo is also characterized by City Hall, St. John's Church, the American Legion Hall and Hugo Elementary School. Highway 61 Overtime, a wide variety of businesses have located along much of the length of Highway 61, particularly north of the downtown area. The majority of the businesses located along Highway 61 remain to this day on private well and septic systems and many are located in metal pole barns on gravel lots and contain uses that require outdoor storage. Uses along the corridor include automotive uses, manufacturing uses, contractor operations, landscaping businesses, auto salvage yards, and a recycling center. The majority of the businesses have minimal investments into buildings or site improvements, and many of these will likely be redeveloped as municipal services are extended to these areas. Peloauin Industrial Park This industrial park located at Highway 61 and 152nd Street was developed on gravel streets and without municipal services. Uses generally include manufacturing, warehousing, and contractor type businesses. Businesses are generally located in metal buildings on gravel lots, and contain minimal site improvements. The City extended municipal sewer and water and constructed paved city streets with drainage improvements to the industrial park in 2004. Since that time, the City has seen substantial new investment in the industrial park, resulting in the construction of new buildings, site improvements, and ultimately new businesses locating within the park. Bald Eagle Industrial Park This Industrial Park was developed by the City, beginning in 1999 with the use of Tax Increment Financing. The park is located along a rail spur beside Highway 61, and between 1301h and 140th Streets. Construction standards were established, resulting in higher quality concrete buildings, and sites that are paved and landscaped. The City's largest employers are located in the park. Uses consist primarily of manufacturing, technical, warehousing and construction related businesses. There is also a pet resort and a mini -storage located in the park. Development of this industrial park along a rail spur has been a major success, and the park is now home to the largest concentration of jobs in the City. County Road 8 Gateway The area near the intersection of CSAH 8 and Victor Hugo Boulevard has been experiencing significant retail development over the past two years. In 2006, improvements were completed on to County Road 8, which resulted in a four -lane divided roadway, including extensive landscaping, street lighting and decorations. The roadway not only improves traffic capacity, it establishes an improved entrance to the City. Development in this area includes a grocery store, retail shops, several banks, restaurants, medical uses, a gas station, and a day care. The buildings offer a high level of architectural design with quality materials and innovative site planning, landscaping, and attention to detail. Demand for retail space at this location is mostly due to the recent surge in residential development in Hugo, the proximity to Interstate 35E, and the recently completed road improvements to the County Road. 6.4. OPPORTUNITIES AND BARRIERS TO ECONOMIC DEVELOPMENT Since 1999, the City's Bald Eagle Industrial Park has seen steady development. Today, nearly all the property within the industrial park has been developed. Multiple quality businesses have located in the industrial park, bringing diverse, quality jobs to the City. Business owners that have selected to move their business into the industrial park have identified a number of advantages to locating a business in Hugo, including: • Location and transportation connections, including Highway 61, the BNSF railroad, and the close proximity of I-35E. • Access to major markets and to available infrastructure within the Twin Cities area • Well educated, skilled, and rapidly expanding labor force • Natural resources • Schools • Diversity of housing options • Low crime • Available land • Financial incentives, including Tax Increment Financing • Constructed local infrastructure including roads and utilities • Helpful, Effective, and Supportive City Council and City staff Since 2005, the City has welcomed a number of new commercial retail, service and medical businesses to the community, bringing important goods and services to the citizens. These new business owners have identified several reasons for locating commercial businesses into the City including: • A rapidly growing population with attractive demographics • Improvements to the CSAH 8 corridor • High quality, well planned, and attractive development • Lack of other similar businesses within close proximity • Available land The City should continue to identify strengths and opportunities. In addition, the City should identify barriers to new business development and seek ways to eliminate or minimize those barriers. The City should continue this effort by asking existing business owners to identify barriers and opportunities though an outreach survey. Identify Target Business Market Based on the strengths and weaknesses identified for the City, the target business market should be identified. Criteria should be established for desirable businesses, including type of business, size of business, quality of business, type of jobs, types of service. Separate parameters may be established for each market sector including office, retail, industrial and medical. So far, the EDA has discouraged the development of typical large, "big box," style retailers, but has encouraged the development of smaller neighborhood style shopping centers. The EDA has encouraged and has been successful in attracting manufacturing businesses that would create jobs that are desirable for much of Hugo's population. The EDA has also recommended that the City provide locations for many of the small home based businesses that are located in some areas of rural Hugo. Such an area would allow for significant outdoor storage of materials and lesser design standards to encourage the expansion of small businesses within the City. Guide Land Use for Taraet Business Market The Land Use Plan Chapter identifies locations for future industrial, retail, and office development. The land use plan should be used to guide new businesses to suitable land for new business development. Land is identified within the land use plan where businesses are likely to succeed with good access to transportation, utilities, and proximity to the workforce. The City's website is intended to become a resource for potential business owners who may wish to locate on developed property. On the website, available commercial land in the City will be listed, and through the listings, property owners may be contacted about available space for sale or lease. The City should provide areas for office and medical development that are distinct from retail areas. Due to the City's support of life -cycle housing, additional housing options are being provided for the senior population, which in turn is creating a demand for additional medical development. In addition, much of the new single-family residential development in the City is affordable only to those earning higher incomes. Many of the professionals now living in the City are creating a demand for professional office and service space. Identifying specific areas for medical and office development will also preserve prime retail space along high traffic corridors for retail development. The land use plan includes a category for "business park" development that will be well suited for office, medical, and light industrial uses along key transportation corridors. Market the City The City should market its strengths and opportunities to desirable businesses. Simply making the information available to the business community is the first step. The City should begin preparing an annual economic report of activity within the City. A new Economic Development page on the City's website should provide helpful data such as demographic information, community characteristics, information about the City's workforce, traffic counts, and listings of available land or buildings. The information should be distributed whenever possible. The City should cooperate and share information with partners such as the Hugo Business Association (HBA), the White Bear Area Chamber of Commerce, and the state Department of Employment and Economic Development. The City should continue to work with surrounding communities and with Washington County to encourage the creation of an east metro economic development strategy. Establish Financial Incentives to Attract New Business Development The City should evaluate all incentives available for use by the City. Policies should be implemented for the use of incentives, including the use of the City's Tax Increment Financing Policy. The City should evaluate other costs associated with the development or operation of businesses within Hugo. Costs should be compared to other cities and the fee structures or other costs should be reformulated where possible to remain competitive. Ensure that Infrastructure is Provided to Meet Business Needs It is important for the City to implement the improvements identified on the City's infrastructure plans illustrated in Chapters 8, 9, 10 and 11 of this document. The important transportation connections and sewer and water improvements that are necessary to accommodate existing and future businesses have been taken into account and are shown in this comprehensive plan. The BNSF rail line serving the Bald Eagle Industrial Park is an important transportation element for existing businesses located there. The rail line should be maintained as long as the businesses rely on it. The City should encourage the eventual conversion of the rail line along TH 61 to a transit corridor that may accommodate both freight and passengers. Provisions for transit will provide businesses with expanded access to the area's workforce. Higher intensity mixed use development and retail development should be encouraged along the transit corridor. The City will cooperate with the Rush Line Corridor Task Force to implement recommended improvements along the corridor. The transportation plan illustrates a future interchange at County Road 4 and I -35E. The interchange is also identified on MnDOT's Inter -Regional Corridor Plan for 1-35. The timing of the construction of this interchange is critical in implementing the plans for business development in northern Hugo. The City should continue to lobby for the accelerated construction of the interchange though the 1-35 W/E Coalition. The City will locate new commercial businesses where municipal utilities are available. Urban services will be made available to the areas guided for business development in accordance with the City's sewer and water plans. The City will strive to ensure that telecommunications needs are met for new or existing businesses. The City will evaluate how fiber optic lines or other telecommunication technology can be extended and used in areas where businesses are located or plan to locate. Downtown Redevelooment The City has adopted a redevelopment plan for downtown Hugo (Chapter 4). The downtown plan strives to maintain the City's business core in downtown with a traditional downtown urban format. For this to become possible, redevelopment of structures in the downtown area must occur. The City has purchased a number of properties in downtown along the east side of Highway 61. As additional properties become available by willing sellers in this area, the City will pursue purchases of those properties. The existing structures will be removed, and the properties will be redeveloped by the City as retail and office space. Multiple other property owners in the downtown area have expressed interest in redeveloping their properties in a manner consistent with the downtown plan. In order to facilitate that development, the City has approved a Tax Increment Financing District to help ensure that development is feasible in the downtown area. Gateways The new development along County Road 8 has established a quality atmosphere at the major western entrance to the City. The attractive development there helps create a good first impression and serves to define the image of City. The City will expend extra effort to establish gateways that exude a similar image of quality at all major entrances to the City, including the northern and southern limits of Highway 61, and the western limit of County Road 4. Promote Quality among New Businesses The City will establish and implement development standards for new business development, including architectural guidelines for retail development, standards requiring quality building materials, and guidance for the preparation of site plans that promote good land planning principles. Proper use of guidelines will ensure that the desired businesses locate in the appropriate areas. Retain Existing Businesses The City will continue to partner with the HBA to identify the needs of existing businesses. The EDA and the HBA should strive to maintain a sound local business climate that encourages businesses to remain. The City will establish and maintain mutually beneficial relationships between business owners, members of the HBA and EDA by establishing open communication. City staff and EDA members will regularly contact existing businesses, make site visits, and prepare and distribute specific literature or surveys for existing businesses. Businesses that are considering moving or expanding will be identified and the City will work to understand barriers that discourage business expansion, and assist businesses in overcoming those barriers. Technical or financial assistance, when warranted, in the interest of maintaining jobs and creating new jobs will be provided. The City will identify successful business retention efforts within other communities and interview any businesses who decide to leave the City to understand their rationale for departing. 6.5. IMPLEMENTATION The Economic Development Authority will implement this plan though its goal setting process each year. It is recommended that the EDA develop a multi-year action plan outlining specific tasks for each calendar year. The EDA will recommend new policies, changes in zoning regulations, or other measures to ensure the effective implementation of the plan. Economic Develor)ment Plan The following implementation strategies will be used to carry out the Economic Development Plan. ECONOMIC DEVELOPMENT PLAN (CHAPTER 6) IMPLEMENTATION STRATEGIES No. DescriptionTiming ........................... __........ .................... .......... _. ............ _ . Strategic Plan. Update long-term strategic plan for economic 1 On-going development within the City. 2 SWOT Analysis. Continue to identify strengths, weaknesses, On-going opportunities and threats to business retention and development. 3 Survey Business Owners. Conduct an outreach survey to Short business owners to identify barriers and opportunities. 4 Identify Target Business Market. Identify the desirable Short businesses using the SWOT analysis and survey results. 5 Market Hugo. Prepare and implement a marketing plan to attract Short and retain desirable businesses in Hugo. Collaborate with business associations and neighboring communities on a regional strategy. 6 Incentives Policy. Create a policy for the use of financial Short incentives within the City. ULI Minnesota Regional Council of Mayors MEMORANDUM TO: Bryan Bear, City Administrator Rachel Juba, Planner FROM: Gordon Hughes and Cathy Bennett, ULI Minnesota DATE: May 30, 2017 SUBJECT: ULI Minnesota Navigating Your Competitive Future Workshop On behalf of ULI Minnesota, thank you for the opportunity to meet with the City's elected and appointed officials and staff on May 16, 2017. Our ULI MN workshop team enjoyed the dialogue and appreciated your hospitality. We also appreciated the time that you spent with us preparing for this workshop. As a follow up to the workshop, we would like to take a moment to summarize some of the key observations expressed during our panel discussion and dialogue. • Data on demographics, employment and jobs in Hugo, presented at the workshop, offered a point of reference for trends that will affect the City in coming years. Please feel free to contact us if you have any follow up questions on the data presented at the workshop or any of the materials which we provided. • Economic development is about what a community has rather than what it lacks. Hugo's strength is "an urban environment in a rural setting." A good economic development strategy would include a thoughtful inventory of Hugo's assets with an eye towards preserving the community's character and sense of place. • Hugo is on the periphery of the metro area industrial and retail market and development opportunities in other areas may need to be absorbed first. Hugo, like most cities in the metro area, is well -retailed, i.e. a broad range of goods and services are available to members of the community even if those goods and services may not be located in Hugo. They may be just across community lines or on the dominant routes that take residents to and from work or around town. Retailers tend to pay less attention to community boundaries than to circulation patterns and shopping habits. Hugo has done a great job of not forcing development before the market is ready. Cities which have done this sometimes end up with less than ideal developments on a long-term basis. Retail growth will follow rooftops, but will be largely comprised of services and convenience goods for Hugo residents and employees. Dining will follow rooftops and a more significant daytime population which is now lacking in Hugo. Panelists pointed out that the U.S. is overly retailed — there's about 25 square feet of retail floor area per capita in the U.S. while Europe has about two square feet per capita. • The number of medical/dental uses is impressive and provides a foundation for other related uses. Panelists were surprised that a pharmacy was lacking and predicted that one or more will be coming soon. • Data centers may be an economic development opportunity for the City. Although they may provide relatively few jobs, they contribute favorably to the tax base. • Small manufacturing startups are typically looking for existing buildings rather than development opportunities. As they grow, development or expansion opportunities become more important. It is essential for the City to "know its inventory" for industrial and manufacturing sites that can be marketed to potential users. • The economics of housing often make new market rate rental projects difficult in many settings. In these places, the market simply cannot bear the rents needed to induce the construction of new rental housing. A city's willingness to explore public/private initiatives, such as low income housing tax credits and tax increment financing or consider fee waivers when appropriate, may be necessary to spur the development of new housing options. Cities that do upfront research, market analysis and take other steps to streamline the development approval process tend to be more successful in attracting development investment for new rental housing. • Mixed use development, with housing as an integral part, may be a desirable use in the downtown area. In order for mixed use to be successful, all elements - housing, retail and commercial — must work from a market perspective. In all likelihood, this will be a horizontal project. Vertical mixed use, especially in a setting like Hugo, is very difficult to accomplish from an economic standpoint. Ownership forms of multifamily housing are still difficult to accomplish. While there may be a demand for common interest community attached housing products, current laws regarding ongoing liability for construction defects has effectively chilled this market. Changes to State law are needed and in the works which may increase opportunities for this type of development in the future. Opportunities for more affordable small lot single family or bungalow type developments require public participation to be feasible. The new single family and one level ownership living offered in the City are not affordable to young families and the New Generation. This type of housing may require financial support from the City or funding from other public sources available at Metropolitan Council, Washington County or Minnesota Housing. Focusing on existing home renovation programs could help provide more affordable options for young families as homes become available as well. Senior housing is a development opportunity for the City and will likely not become overly saturated in the near term. Senior housing is more about 85 year olds than 65 year olds. Therefore, the peak of Baby Boomer senior housing demand may still be 20 years away. Senior cooperatives are a workable model in Minnesota and could be an opportunity for Hugo which typically attracts the younger independent senior population. The success of coops often depends on the ability of buyers to sell their existing homes which are usually in relatively close proximity to a new development. • Trails and sidewalks are important. Especially those that connect important places along safe and interesting routes. • Plan around Hugo's assets. Sometimes cities attempt to promote development that doesn't fit with who they are. Focus on Hugo's wonderful assets and how they play into the long-term development potential of the City. (Re)development is a relationship business. Hugo has a great story to tell and should be shared proactively with the development community and as opportunities arise. The Great Recession seriously affected the development community. Qualified developers who remain in business are selective about the communities in which they work and are looking for predictability and flexibility. Cities which embrace collaborative approaches to solving problems, identify and pursue partnerships, manage development risks, improve decision making skills and develop clear expectations will be attractive locations for great (re)development. Developers are much more reluctant to invest their limited "pursuit capital" in cities which have not invested the time and energy needed to achieve a commonly held vision. • It's OK to say no. Sometimes it is necessary to say no and demand a better development product. However, it is critically important to provide a clear understanding to the development community about what is expected and achievable. A fast "no" is better than a slow "maybe" from a developer's standpoint — time adds costs to a project and can kill deals. Successful communities develop a clear vision, react appropriately to opportunities, create innovative financial tools and leverage their key assets. Leadership and "consistency of vision" are keys to successful communities, especially the alignment of policy direction between elected officials, appointed officials and staff. Developers' greatest enemies are uncertainty and risk. Both developers and lenders are even more risk averse now, so communities that can be very clear about their expectations and have policies and procedures that expedite approvals for projects that are consistent with their vision will prevail. Involve the Next Generation in decision making. This generation is willing to contribute their opinions and expertise in making their community a better place. Cities which find new innovative ways to engage the Next Generation will benefit greatly from their contributions, especially during the comprehensive planning process. • The City's involvement in (re)development can take many forms. It could be financial assistance, it could be marketing initiatives and it could be property assemblage. Whatever the approach, it is important for the City to align available resources and communicate them effectively to the (re)development community. The policies and practices outlined in the ULI MN (Re)Development-Reade Guide will assist Hugo in establishing (re)development policies and practices that use scarce public dollars to attract private investment, grow jobs, and build tax base for the well-being of your city. • Final thoughts of the panel. The panel concluded the workshop with these final thoughts: o Think outside the box on housing to provide housing opportunities at a more affordable price point. Eden Spencer, Greater Metropolitan Housing Corporation o Not all communities need to or should look the same. Work to preserve Hugo's character and amenities. Chris Eng, Washington County HRA o Capitalize on Hugo's assets as a brand — "an urban environment in a rural setting." Sara Joy Proppe, Schafer Richardson o Hugo has and should continue to manage its growth in a disciplined way. All good retail grows "organically" and is not forced prematurely. Keith Ulstad, United Properties On behalf of ULI MN, thank you again for hosting this workshop. 4 What Amazon's HQ2 Wish List Signals About the Future of Cities https://hbr.org/2017/09/what-amazons-hq2-wish-list-signals-about-the... ECONOMIC DEVELOPMENT What Amazon's HQ2 Wish List Signals About the Future of Cities by Amy Liu and Mark Muro SEPTEMBER 08, 2017 Jennifer Maravillas for HBR r l* J Amazon's big announcement that it will build a second headquarters has caught the attention of local officials, economic development professionals, and pundits across the U.S. and Canada. And for good reason: "HQ2," as it's being called, would create upwards of 50,000 high -paying jobs and billions of dollars of new investment in whichever 1 of 4 9/13/2017, 1:17 PM What Amazon's HQ2 Wish List Signals About the Future of Cities https://hbr.org/2017/09/what-amazons-hq2-wish-list-signals-about-the... city it locates in. The city that lands this historic deal will see its economic and physical landscape transformed, albeit for a hefty price tag in the form of tax breaks. Thus far, public attention has largely focused on two aspects of Amazon's announcement: Speculation about which of the 50 eligible North American metropolitan areas are most likely to be chosen for HQ2, and how much public subsidy the winning city will offer the world's 4th -largest corporation to seal the deal. But this announcement carries far more profound implications for regional and local economic developers, Amazon HQ2 hopefuls or not. Amazon's selection criteria, as described in the company's request for proposal, sets out a compelling list of the attributes cities must have if they aspire to be a serious part of the America's growing digital economy. As our research has shown, the vibrant metros of the future will be those that are home to high-tech advanced industries. That's because those industries spur the collision of digital technologies and cutting-edge business development, also brought about by tech -savvy workers and R&D investments, and generate jobs and good wages in a period of sluggish economic growth. Digital industries are a main driver of growth within these high-value industries. Yet for all their benefits and buzz, digital jobs continue to geographically concentrate in established high- tech meccas at a time when our nation needs more metro areas, especially in the heartland, to gain a competitive foothold in the digital future. So how can cities garner a bigger share of high-tech growth? The answer is not to just polish up branding and marketing materials and wait for the next Amazon -scale business attraction opportunity. Nor is it to concentrate entirely on traditional economic development strategies of bundling available plots of land for prospective businesses and offering generous subsidies (though admittedly, Amazon seems to want a bit of that, too). Rather, cities need to look closely at the criteria in Amazon's RFP and ask whether they've done enough to build up the fundamental assets prized by innovative firms and industries. Amazon's wish list is an unusually public confirmation from one of the most recognized corporations in the world of the factors that make a local ecosystem relevant in today's innovation economy. Among these factors are: Capacity to produce skilled, technical talent. The importance of talent pervades the Amazon RFP, with special mention of a "strong" university system, computer science programming in the K-12 education system, 2 of 4 9/13/2017, 1:17 PM What Amazon's HQ2 Wish List Signals About the Future of Cities https://hbr.org/2017/09/what-amazons-hq2-wish-list-signals-about-the... and opportunities for creative partnerships with community colleges and universities. • Access to domestic and global markets through modern infrastructure. Amazon dwells extensively on the importance of proximity and connectivity to population centers. It seeks a strong infrastructure network of highways, international airports, and high-speed broadband to streamline logistics, conduct business, and access major employment pools. • Connected and sustainable placemaking. The Amazon RFP reads like an urban planner's dream, brimming with calls for energy efficient buildings, recycling services, public plazas, green space, and access to multiple modes of transportation. While Amazon will apparently consider greenfield sites as well as existing developments for its new headquarters, it emphasizes its interest in promoting walkability and connectivity between densely clustered buildings through "sidewalks, bike lanes, trams, metro, bus, light rail, train, and additional creative options." • Culture and diversity. Promoting an inclusive culture matters to Amazon. The RFP specifically calls for "the presence and support of a diverse population," along with excellent higher education institutions and functioning local governance. In sum, the Amazon RFP very clearly embodies a series of forward -thinking business values of global engagement, diversity, and environmental stewardship. Amazon is also signaling very clearly and publicly what the market demands for modern, state -of -the -urban economic development going forward. As each of us has written about extensively, regional economic development is about growing from within. It requires helping existing firms expand and innovate, supporting entrepreneurs, creating industry -relevant skills programs, and strengthening other local assets that improve the economic prospects of local industries and workers. These attributes, even more than incentives packages, will attract the attention of outside firms interested in being part of a region's unique ecosystem. So rather than get distracted by the city vs. city competition brought about by Amazon's announcement, state and local economic development leaders need to bear down on reinventing the way they do business. Amazon's HQ2 will only be located in one city, but the path to prosperity in a hyper -digital global economy is attainable for cities that invest in people, infrastructure, and quality places. 3 of 4 9/13/2017, 1:17 PM What Amazon's HQ2 Wish List Signals About the Future of Cities https://hbr.org/2017/09/what-amazons-hq2-wish-list-signals-about-the... Amy Liu is Vice President and Director of the Metropolitan Policy Program at the Brookings Institution. Mark MUCO is a senior fellow and director of policy for the Metropolitan Policy Program at Brookings. This article is about ECONOMIC DEVELOPMENT Q FOLLOW THIS TOPIC Related Topics: GOVERNMENT I REAL ESTATE I NORTH AMERICA C Loading... Loading... 4 of4 9/13/2017,1:17 PM Rachel Juba From: Joel Akason <info@greatermsp.org> Sent: Monday, September 11, 2017 10:56 PM To: Rachel Juba Subject: Update: Project HQ2 #710 Company Seeks New Headquarters Location ............ If you're having trouble viewing this email, you may see it online. Project HQ2 #710 update: The Amazon HQ2 opportunity continues to be a topic many of us in the region are working on. We would like to communicate to you all as often as we can with as much information as we have. Many of you have contacted GREATER MSP and/or DEED with excellent questions. We are going to address as many of those as we can for everyone. We all are using the client's RFP as our guide. Please reference hfps://images-na.ssi-images- amazon.com/images/G/01/Anythincl/testlimNes/usa/RFP 3. V516043504 .pdf Please continue to use this as you work on your local submissions that are due by end of day September 22. Please email submissions to ioel.akason(a)greatermsp.org The local submission is a key component at the present time. DEED and GREATER MSP are encouraging all interested parties to connect with the local government on any site/building/redevelopment/creative opportunity. We need the local government and the local team around the opportunity to validate the opportunity per the guidelines of the RFP guide. We encourage the local submission to be as direct and forthcoming as possible with regard to items like current ownership, cost associated with site, financial assistance, transit upgrade plans and completion, infrastructure and utility needs and completion, etc. At the same time, DEED and GREATER MSP and other partners that have a regional/state jurisdiction are coming together to start working on information items like labor force, logistics, cultural community fit, quality of life, etc. The review of sites submitted by September 22 are to be reviewed by DEED and GREATER MSP with many partners to ensure the best options are put forward. All confirmed sites will then begin partnering with the above mentioned regional group to ensure a comprehensive submission. A final determination has not been made, but consideration of hiring and including professional expertise with regard to site review/validation and the final look of the submission are being discussed by DEED and GREATER MSP. A reminder that there is to be one official submission and that is being coordinated by DEED and GREATER MSP. id For questions: please contact Joel Akason, GREATER MSP Director of Business Investment, at 651-287-5807 or 0oel.akason(c)-greatermsi).org. Back to to_ ^ ph:651.287.1300I 400 Robert Street North GREATER � M SW toll free: 1.855.287.1300 Suite 1600 e: info@greatermsp.org Saint Paul I MN 55101 This email was sent to rsimone@ci.hugo.mn.us. To ensure that you continue receiving our emails, please add us to your address book or safe list. manage your preferences I ORt out using TrueRemove@. ,Got this as a forward? Sign up to receive our future emails. Amazon HQ2 RFP INSTRUCTIONS TO RESPONDENTS Amazon invites you to submit a response to this Request for Proposal ("RFP") in conjunction with and on behalf of your metropolitan statistical area (MSA), state/province, county, city and the relevant localities therein. Amazon is performing a competitive site selection process and is considering metro regions in North America for its second corporate headquarters. We encourage states, provinces and metro areas to coordinate with relevant jurisdictions to submit one (1) RFP for your MSA. The RFP may contain multiple real estate sites in more than one jurisdiction, but we do encourage you to submit your best sites to meet or exceed the needs of our Project described in this RFP. Any questions regarding the information or items requested in this document can be submitted using the email below. We encourage you to go through the process as outlined in the RFP and ask questions of the team using the email provided below. PROPOSAL REQUIREMENTS Please provide an electronic copy and five (5) hard copies of your responses by October 19, 2017 to amazon hg2Qamazon.com. Please send hard copies marked "confidential" between the dates of October 16th — 191h to: Amazon Office of Economic Development c/o Site Manager Golden 21217' Ave Seattle, WA 98121 For electronic submittals, please send a password -protected website URL or a USB only. If using a password -protected website, the submitting agency should also submit written responses to the RFP questions (Information Requested section). TIMELINE September 7, 2017 RFP Phase I Available October 19, 2017 RFP Phase I Response Deadline 2018 Final Site Selection and Announcement OVERVIEW Background: The purpose of this RFP is to describe the Project and provide a framework for soliciting specific information that will allow Amazon to determine the ideal location for our Project. The Project is a second corporate headquarters (HQ2), at which Amazon will hire as many as fifty thousand (50,000) new full-time employees with an average annual total compensation exceeding one hundred thousand dollars ($100,000) over the next ten to fifteen years, following commencement of operations. The Project is expected to have over $5 billion in capital expenditures as described in more detail in this RFP. Amazon is a publicly traded U.S. corporation and is a leading internet retailer and technology company. Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. The Company presently maintains more than 380,000 employees at multiple facilities in North America and throughout the world. Due to the successful growth of the Company, it now requires a second corporate headquarters in North America. Amazon's current headquarters is located in downtown Seattle, Washington. This urban campus employs tens of thousands of employees. Amazon has been a catalyst for development in downtown Seattle with an abundance of restaurants, services, coffee shops, and for the redevelopment of South Lake Union and Denny Triangle with its sustainable buildings and open spaces. In 2017, Amazon was awarded the "City Maker" award by the Downtown Seattle Association. Amazon estimates its investments in Seattle from 2010 through 2016 resulted in an additional $38 billion to the city's economy — every dollar invested by Amazon in Seattle generated an additional $1.4 for the city's economy overall. Find more information at: www.amazon.com/amazonHQ2. We look forward to working with you and your team to find a suitable site and establish a cost structure with a stable business climate for growth and innovation that would encourage Amazon to locate this high-profile Project in your community. In choosing the location for HQ2, Amazon has a preference for: • Metropolitan areas with more than one million people • A stable and business -friendly environment • Urban or suburban locations with the potential to attract and retain strong technical talent • Communities that think big and creatively when considering locations and real estate options HQ2 could be, but does not have to be: • An urban or downtown campus • A similar layout to Amazon's Seattle campus • A development -prepped site. We want to encourage states/provinces and communities to think creatively for viable real estate options, while not negatively affecting our preferred timeline PROJECT FACTS Employment: The Project is expected to create as many as fifty thousand (50,000) new full-time jobs with an average annual compensation exceeding one hundred thousand dollars ($100,000) per employee. We will begin sourcing for talent at Amazon HQ2 upon final site selection. Please note that the actual average wage rate may vary from the projected wage rate depending upon prevailing rates at the final location. Amazon also provides a highly competitive benefits package including a retirement plan, health insurance, and maternity/paternity leave, featuring Amazon's Leave Share and Ramp Back program. All job numbers, categories, and salaries contained herein are estimates/projections and are subject to change. The jobs will likely be broken down into the following categories: executive/management, engineering with a preference for software development engineers (SDE), legal, accounting, and administrative. Amazon is an equal opportunity employer. Building/Site Reuuirements: Amazon is considering greenfield sites, infill sites, existing buildings, or a combination for the Project. If existing buildings are available that can be retrofitted/expanded within an acceptable budget and time schedule, Amazon may consider this option; however, the company acknowledges that existing buildings may not be available to meet its requirements. As such, Amazon will prioritize certified or shovel -ready greenfield sites and infill opportunities with appropriate infrastructure and ability to meet the Project's timeline and development demands, as set forth below. The following is a summary of the Project's ideal site and building requirements: Core Preferences-quantityUnits Descritztion Site Requirements Proximity to population center 30 Miles Proximity to International airport Within approx. 45 Minutes Close to major arterial Proximity to major highways roads to provide optimal and arterial roads Not more than 1-2 Miles access Direct access to rail, train, subway/metro, Access to mass transit At site bus routes Building Requirements Initial Square Foot Requirement 500,000+ Sq. Ft. Phase I (2019) Total Square Foot Requirement Up to 8,000,000 Sq. Ft. Beyond 2027 2 Details of Amazon's Seattle headquarters: 'From 2010 (when Amazon moved its headquarters to downtown Seattle) to June 2017. 2From 2010-2016. Calculated using Input -Output methodology and multipliers developed by the U.S. Bureau of Economic Analysis. Priority for Consideration (in no particular order): Amazon will consider the following site/building categories for the Project: Existing buildings of at least 500,000+ sq. ft., meeting the core requirements described above and that are expandable or have additional options for development nearby. 2. A greenfield site of approximately 100 acres certified or pad ready, with utility infrastructure in place. The sites do not have to be contiguous, but should be in proximity to each other to foster a sense of place and be pedestrian -friendly. 3. Other infill, existing buildings, including opportunities for renovation/redevelopment and greenfield sites, meeting the proximity and logistics requirements of the Project. This can also be a combination of the above. Amazon Seattle HQ Number of buildings 33 Square feet 8.1 million Local retail within Amazon headquarters 24 restaurants/cafes + 8 other services Amazon Employees 40,000+ U Capital investment (buildings & infrastructure) $3.7 billion Operational expenditures (utilities & $1.4 billion maintenance) Compensation to employees $25.7 billion Number of annual hotel nights by visiting 233,000 (2016) Amazonians and guests Amount paid into the city's public transportation $43 million system as employees' transportation benefit Additional jobs created in the city as a result of 53,000 Amazon's direct investments Additional investments in the local economy as a $38 billion 41 U result of Amazon's direct investments Increase in personal income by non -Amazon 5 employees as a result of Amazon's direct $17 billion investments Increase in Fortune 500 companies with From 7 in 2010 to 31 in 2017 j engineering/R&D centers in Seattle 'From 2010 (when Amazon moved its headquarters to downtown Seattle) to June 2017. 2From 2010-2016. Calculated using Input -Output methodology and multipliers developed by the U.S. Bureau of Economic Analysis. Priority for Consideration (in no particular order): Amazon will consider the following site/building categories for the Project: Existing buildings of at least 500,000+ sq. ft., meeting the core requirements described above and that are expandable or have additional options for development nearby. 2. A greenfield site of approximately 100 acres certified or pad ready, with utility infrastructure in place. The sites do not have to be contiguous, but should be in proximity to each other to foster a sense of place and be pedestrian -friendly. 3. Other infill, existing buildings, including opportunities for renovation/redevelopment and greenfield sites, meeting the proximity and logistics requirements of the Project. This can also be a combination of the above. 4. Please also consider the overall proximity of the buildings at full build -out as you are making recommendations. Capital Investment: The Project could be over $5 billion in capital investment over the initial 15-17 years of the Project. Please note the capital investment required to acquire and retrofit an existing building is dependent upon the condition and nature of that building. As such, the following capital investment estimates will vary depending upon site requirements and actual construction costs, particularly with respect to an existing building. Building Phase Estimated Capital Investment Phase I Building (500,000-1,000,000 sf) $300,000,000-$600,000,000 Phase 11 Building (1,000,000-2,000,000 sf) $600,000,000-$1,260,000,000 I Phase III Building (2,000,000-3,000,000 sf) I $1,260,000,000-$1,985,000,000 Phase IV and beyond will grow organically. At full build -out, the campus or park may exceed 8 million square feet and over $5 billion in total capital investment. Amazon will continue to invest in its facilities to ensure we offer a state-of-the-art workplace for our employees. States, provinces and metro economic development organizations should consider this as they suggest potential sites. Be sure to include opportunities to cultivate local culture and creativity into the Amazon HQ2 site. Also, include connectivity options: sidewalks, bike lanes, trams, metro, bus, light rail, train, and additional creative options to foster connectivity between buildings/facilities. Additional Information: Sustainability: Amazon is committed to sustainability efforts. Amazon's buildings in its current Seattle campus are sustainable and energy-efficient. The buildings' interiors feature salvaged and locally sourced woods, energy-efficient lighting, composting and recycling alternatives as well as public plazas and pockets of green space. Twenty of the buildings in our Seattle campus were built using LEED standards. Additionally, Amazon's newest buildings use a 'District Energy' system that utilizes recycled heat from a nearby non -Amazon data center to heat millions of square feet of office space — a system that is about 4x more efficient than traditional heating. This system is designed to allow Amazon to warm just over 4 million square feet of office space on Amazon's four -block campus, saving 80 million kilowatt-hours over 20 years, or about 4 million kilowatt-hours a year. We also invest in large solar and wind operations and were the largest corporate purchaser of renewable energy in the U.S. in 2016. Amazon will develop HQ2 with a dedication to sustainability. Connectivity: Ensuring optimal fiber connectivity is paramount at our HQ2 location. Please demonstrate the fiber connectivity on all submitted sites. Also, demonstrate multiple cellular phone coverage maps to ensure optimal service. 4 KEY PREFERENCES AND DECISION DRIVERS The below are our preferences and are not in a ranking order. We want to encourage you to think big and be creative as you are collaborating to respond. Please address the drivers discussed below in your RFP submittals. Site/Building — As described herein, finding suitable buildings/sites is of paramount importance. Amazon HQ2 is a transformational Project, and we must ensure we have the best real estate options available whether this be a redevelopment opportunity, a partnership with the state, province, local government, or new buildings. All options are under consideration. Capital and Operating Costs — A stable and business -friendly environment and tax structure will be high-priority considerations for the Project. Incentives offered by the state/province and local communities to offset initial capital outlay and ongoing operational costs will be significant factors in the decision-making process. Incentives — Identify incentive programs available for the Project at the state/province and local levels. Outline the type of incentive (i.e. land, site preparation, tax credits/exemptions, relocation grants, workforce grants, utility incentives/grants, permitting, and fee reductions) and the amount. The initial cost and ongoing cost of doing business are critical decision drivers. Labor Force—The Project includes significant employment requirements at the threshold compensation levels described herein and with corresponding educational attainment of the available workforce. The Project must be sufficiently close to a significant population center, such that it can fill the 50,000 estimated jobs that will be required over multiple years. A highly educated labor pool is critical and a strong university system is required. Logistics— Personnel travel and logistics needs, both from population centers to the Project site, as well as between company facilities, are critically important. As such, travel time to a major highway corridor and arterial roadway capacity potential are key factors. The highway corridors must provide direct access to significant population centers with eligible employment pools. Travel time to an international airport with daily direct flights to Seattle, New York, San Francisco/Bay Area, and Washington, D.C. is also an important consideration. Time to Operations —The Project requires an expeditious timetable for the location decision and the commencement of construction. Given this, sites with the requisite access, utility infrastructure, and zoning are critical. Please outline the permitting process and estimated timetable to initiate Phase I of our operations. Cultural Community Fit — The Project requires a compatible cultural and community environment for its long-term success. This includes the presence and support of a diverse population, excellent institutions of higher education, local government structure and elected officials eager and willing to work with the company, among other attributes. A stable and consistent business climate is important to Amazon. Please demonstrate characteristics of this in your response. We encourage testimonials from other large companies. Community/Quality of Life — The Project requires a significant number of employees. We want to invest in a community where our employees will enjoy living, recreational opportunities, educational opportunities, and an overall high quality of life. Tell us what is unique about your community. 5 INFORMATION REQUESTED 1. Please provide information regarding potential buildings/sites that meet the criteria described herein. Along with general site information, please provide the current ownership structure of the property, whether the state/province, or local governments control the property, the current zoning of the site, and the utility infrastructure present at the site. 2. Please provide a summary of total incentives offered for the Project by the state/province and local community. In this summary, please provide a brief description of the incentive item, the timing of incentive payment/realization, and a calculation of the incentive amount. Please describe any specific or unique eligibility requirements mandated by each incentive item. With respect to tax credits, please indicate whether credits are refundable, transferable, or may be carried forward for a specific period of time. If the incentive includes free or reduced land costs, include the mechanism and approvals that will be required. Please also include all timelines associated with the approvals of each incentive. We acknowledge a Project of this magnitude may require special incentive legislation in order for the state/province to achieve a competitive incentive proposal. As such, please indicate if any incentives or programs will require legislation or other approval methods. Ideally, your submittal includes a total value of incentives, including the specified benefit time period. If any of the programs or incentives described in the summary of total incentives are uncertain or not guaranteed, please explain the factors that contribute to such uncertainty and estimate the approximate level of certainty. Please also describe any applicable claw backs or recapture provisions required for each incentive item. 4. Please provide a timetable for incentive approvals at the state/province and local levels, including any legislative approvals that may be required. Please provide labor and wage rate information in the general job categories described. Please provide relevant labor pool information and your ability to attract talent regionally. Also, include specific opportunities to hire software development engineers and recurring sourcing opportunities for this type of employment. Please include all levels of talent available in the MSA, including executive talent and the ability to recruit talent to the area. Please include programs/partnerships currently available and potential creative programs with higher education institutions in the region in your response. Please also include a list of universities and community colleges with relevant degrees and the number of students graduating with those degrees over the last three years. Additionally, include information on your local/regional K-12 education programs related to computer science. Please provide highway, airport, and related travel and logistics information for all proposed sites. Please also include transit and transportation options for commuting employees living in the region. For each proposed site in your region, identify all transit options, including bike lanes and pedestrian access to the site(s). Also, list the ranking of traffic congestion for your community and/or region during peak commuting times. 11 8. Please include information on your community with respect to daily living, recreational opportunities, diversity of housing options, availability of housing near potential sites for HQ2, and pricing, among other information. Please also include relevant crime data and cost of living data. 9. Please use your response as an opportunity to present any additional items and intangible considerations with respect to your state/province and community that Amazon should include in its analysis. While the existence of the Project is not confidential, certain aspects of the Project and details regarding the company are confidential, proprietary, and constitute trade secrets. Amazon will deliver a Confidentiality and Non -Disclosure Agreement for execution at the appropriate time. Conclusion: As this is a competitive Project, Amazon welcomes the opportunity to engage with you in the creation of an incentive package, real estate opportunities, and cost structure to encourage the company's location of the Project in your state/province. Please contact amazonhg2@amazon.com for questions while responding to this RFP. This RFPisonly an invitation for proposals, the substance of which maybe memorialized in a binding, definitive agreement or agreements if any proposal is selected. Amazon may select one or more proposals and negotiate with the parties submitting such proposals before making an award decision, or it may select no proposals and enter into no agreement.