Austin American-Statesman

Pool blasts city over its Amazon bid

Council member says process too opaque; Adler defends chamber.

- By Sebastian Herrera and Shonda Novak sherrera@statesman.com snovak@statesman.com

An Austin City Council member says the city is mishandlin­g its pursuit of Amazon’s planned $5 billion second headquarte­rs project by failing to be transparen­t about the process, which she says so far has kept even the City Council in the dark.

Council Member Leslie Pool says city leaders erred by having the Greater Austin Chamber of Commerce lead the region’s recruitmen­t pitch for the Amazon project, which has been dubbed HQ2 and promises to bring 50,000 highly paid jobs to the city that wins it.

After receiving pitches from more than 230 cities, Amazon in January announced that Austin was one of 20 finalists for the HQ2 project. The Greater Austin Chamber of Commerce submitted the city’s proposal to Amazon on Oct. 18. Chamber officials said the bid was made on the behalf of not only Austin, but the other cities and counties in

the metro area.

The chamber and city officials have refused to release any details of what was included in the applicatio­n sent to Amazon. The city rejected an open records request from the American-Statesman, citing a section of the state’s open records law that allows an exemption for releasing informatio­n that could put the city at a competitiv­e disadvanta­ge.

Pool and some Austin civic leaders say the city and chamber are keeping Austinites in the dark about the process and about poten- tial promises being made on their behalf.

Pool said even City Coun- cil members have been given no details about what was in the initial applicatio­n or

about ongoing negotiatio­ns with Amazon. “I know nothing about the Amazon bid. It appears

none of my colleagues do, either,” Pool said. “I have

been asking for some insight to what the proposal had, and I’ve been asking for six months. I find that extraor- dinary. It’s been mishandled by the chamber. If they thought about it, they would have realized this would have been an issue for the whole town, and they should have talked to us about what they can negotiate.”

Pool said she is concerned that, should Amazon choose Austin, the city “would be on the hook for significan­t infrastruc­ture developmen­t. You would think we would need to be asked if we want to take on that financial burden.

“This community is not ready for Amazon,” Pool said. “I think the City Council should have been briefed on what (the chamber) was pull- ing together. Is San Marcos involved? Is Hutto involved? They say they have submitted a bid for the Central Texas region. The chamber cannot speak for us. Absolutely, I’ve made that clear. They don’t have the authority.”

Civic activist Bill Aleshire, a local attorney and former Travis County judge, said the City Council “should have voted on whether to have the mayor invite Amazon to locate here.

“Instead of an open process about whether to even invite Amazon here, you get a mayor who presumes he can speak for the coun- cil on such a big deal without even consulting the rest of the council, and a chamber of commerce who presumes it can claim ‘the city’ is making an offer when they have no legal authority to do so,” Aleshire said. “Secrecy does not lead to deals that are good for the folks who live here now.”

Aleshire and Pool raised similar concerns earlier this week in a story by the

online Austin Bulldog, which reported how the City Coun- cil has not specifical­ly discussed or authorized an Ama- zon bid and instead has relied on the arrangemen­t that delegates that authority to the chamber.

Other city leaders, however, say the handling of the recruiting process is a nonissue. The chamber has long led the city’s efforts to recruit new business to Aus- tin — and the chamber has no legal authority to reach any binding deals with Amazon on the city’s behalf, Mayor Steve Adler said.

“The chamber, they do this all the time for businesses big and small,” Adler said. “The chamber continues to have to give advice (to Amazon), but the chamber doesn’t get to make any offers. The City Council can’t authorize any offers without public notice. I think that when it’s appro- priate to have those con- versations, the city needs to get involved if it reaches that level.”

Adler has previously said the Amazon bid did not include any financial incentives from the city, and he released a letter he wrote to Amazon touting Austin’s qualities. “A lot of people are ask

ing questions because they believe the council is secretly negotiatin­g. I’ve been really transparen­t with any conversati­on that I’m having,” Adler said. “I even wrote out a letter which laid out all of my thoughts.”

Mike Rollins, president and CEO of the Greater Austin Chamber of Commerce, said the way his organizati­on has handled the Amazon applicatio­n “is our regional standard practice for economic developmen­t projects.”

Included in the applicatio­n, he said, was “general informatio­n about the processes that any company would need to adhere to regarding potential incentives in various government bodies. Each of these elected bodies have their own incentive policies, practices and programs that are set by each jurisdicti­on, not the chamber. All decisions on structurin­g or approving any incentive are reserved for the respective elected bodies at the appropriat­e time.”

Although the City Council has not been formally briefed on the pursuit of Amazon, Council Member Ann Kitchen said she has no issues about how the process has been conducted.

“There’s a role for the chamber to play. Part of what they do is help the city in the role of economic develop

ment. What they’re doing is what they’ve done in the past, and it does not commit the city in any way,” Kitchen said. “We have another process we use before we can do any economic incentives. What’s currently in place is a public input process and staff analysis of any kind of proposal before it even gets to the council for a vote . ... There’s no proposal in front of us. There’s no proposal for the staff to analyze.” In a written statement, Council Member Ora Hous- ton said: “I was aware that

there was interest in Austin for an Amazon headquarte­rs, and that the Austin chamber was interested in bringing Amazon to Austin, beyond that I know what the media

has reported. I am not sure what the process has been and didn’t see the letter from the mayor that some have referenced.”

Council Members Ellen Troxclair, Alison Alter, Delia Garza, Greg Casar, Sabino “Pio” Renteria and Kathie Tovo were either unavailabl­e or did not respond to requests seeking comment.

Council Member Jimmy Flannigan said that, by allow- ing the chamber to handle early recruiting discussion­s with companies such as Ama- zon, city staff are freed to work on their other responsibi­lities.

“This is how the process works,” Flannigan said. “There’s nothing nefarious about the chamber talking to a company. There’s no lacking transparen­cy with the chamber having a conversati­on with Amazon. It’s how these things go. We don’t open up really any negotiatin­g process until we’ve reached the end.”

And if Amazon does, in fact, choose Austin for its HQ2 project and the City Council members don’t like

what theretail giant was asking for, there is a simple fix,

Flannigan said. “Then we’ll vote no,” Flannigan said. “We always have

that ability to vote no.”

 ??  ?? Mayor Steve Adler and Austin City Council Member Leslie Pool are on opposite sides of the issue of chamber involvemen­t.
Mayor Steve Adler and Austin City Council Member Leslie Pool are on opposite sides of the issue of chamber involvemen­t.
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 ?? DEBORAH CANNON / AMERICAN-STATESMAN 2016 ?? The lobby of Amazon’s offices near the Domain. Austin is one of 20 finalists for the e-commerce giant’s second headquarte­rs.
DEBORAH CANNON / AMERICAN-STATESMAN 2016 The lobby of Amazon’s offices near the Domain. Austin is one of 20 finalists for the e-commerce giant’s second headquarte­rs.
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