Detroit-Windsor fails to make cut
Civic leaders looking for answers after Amazon HQ2 shortlist snub
Despite pride and positivity on both sides of the border over Detroit-Windsor’s bid to land Amazon’s $5-billion HQ2, it wasn’t enough to make the cut — and now the questions turn to why.
“Obviously, it’s unfortunate,” said Windsor Mayor Drew Dilkens on Thursday afternoon.
“The amount of effort that went into this bid was extensive. We had a great partnership with (Detroit developer) Dan Gilbert’s office, the mayor of Detroit and our economic development folks on both sides of the border.
“I think we had a very, very compelling bid, and a narrative that we could tell. I think the business case was extremely strong.”
On Thursday morning, Amazon released its short list of 20 prospective locations for its much-anticipated second North American headquarters — narrowed down from 238 submitted proposals.
The finalists include major metropolises such as Los Angeles, New York City, Dallas, Chicago, and Miami, but also humbler communities such as Pittsburgh, Columbus, Northern Virginia and Montgomery County, Md.
Also on the short list is Toronto, the only Canadian city to make the cut. Notably absent from the list: Detroit’s joint bid with Windsor.
“We’re trying to get a debrief meeting (with Amazon), so that we can learn where our proposal fell short, where we can strengthen moving forward,” Dilkens said. “But I truly believe the work that’s been done is just the start of the conversation.”
Past analyses cast the DetroitWindsor bid as a low-rated long shot. Asked how he would respond to those critics, now that they have apparently been proven correct, Dilkens maintained that he loves being the underdog.
“I love people discounting us out of the gate,” he said. “There are great things happening in Detroit and in Windsor. When we stitch our stories together, I think it’s a strong value proposition for business. This is just the start of future conversations and economic opportunities that we’ll work on together.”
Speculation on why DetroitWindsor didn’t make the cut was swift, with some pointing to the Motor City’s lack of public transit, reputation for urban distress, boom-and-bust business climate, and lagging tech sector.
But John Gallagher, business writer for the Detroit Free Press, reported that Amazon told Detroit leaders on Thursday that insufficiency in the region’s talent pool made the difference.
According to Sandy Baruah, president of the Detroit Regional Chamber, Amazon representatives shared concerns over the quality of child education, the “brain drain” of tech-savvy graduates, and Detroit’s difficulty in attracting and keeping talent.
On the plus side, Amazon appreciated the bid’s creativity, regional collaboration and international partnership with Windsor, Baruah reportedly said.
“We were good, but we weren’t good enough on the talent front.”
The Detroit-Windsor bid was led by Detroit developer Dan Gilbert, who promoted our region as the only dual-nation proposal for HQ2.
In a personal letter to Amazon, Gilbert had invited the company to become a part of Detroit’s reinvention story.
“Come to Detroit and visit us for one day and your heart, gut and intuition will feel the energy,” he wrote.
Detroit Mayor Mike Duggan reacted to the bid’s failure by thanking Gilbert, Michigan Governor Rick Snyder and Dilkens for “an extraordinary effort in a short period of time.”
“We would have loved to have made it into the next round for Amazon’s second headquarters, but everyone here is incredibly proud of the proposal we submitted,” Duggan wrote. “We’re going to keep building on the progress we’ve made and keep pursuing major developments.”
Gilbert issued his own statement, expressing disappointment at Amazon’s decision, but also assuring that “we are not deterred in any way, shape or form.”
“Detroit is the most exciting city in the country right now and the momentum continues to build every single day,” Gilbert wrote.
The bid featured 30 years of tax exemptions, at least 3.2 million square feet of existing office space and a pledge to invest $120 million in Michigan tech education.
Windsor’s contribution to the bid included a $106-million package of municipal, provincial and federal incentives on this side of the border. Dilkens suggested building a gondola or ferry service across the river to connect Amazon campuses in downtown Detroit and Windsor.
Meanwhile, Ontario Premier Kathleen Wynne welcomed the inclusion of Toronto, hailing it as a recognition of “our province and Toronto’s many strengths.”
She praised Toronto as “an ideal destination with its talented and educated workforce, leading research and educational institutions, competitive investment climate, outstanding quality of life and vibrant, diverse communities.”
Ed Clark, business adviser to the Premier and former CEO of TD Bank Group, will be heading the Ontario government response as Toronto’s bid enters the next stage of Amazon’s process.
Toronto Mayor John Tory cautioned that “the short list is like making the playoffs, but it’s a long way from the prize ... We’re going to have to find out what Amazon wants in their second round.”
Holly Sullivan, senior economic development manager for Amazon, thanked all the communities that submitted proposals.
“Getting from 238 to 20 was very tough — all the proposals showed tremendous enthusiasm and creativity,” she said in the release.
According to Amazon, each submission was thoroughly evaluated based on the criteria outlined in the RFP.
“In the coming months, Amazon will work with each of the candidate locations to dive deeper into their proposals, request additional information, and evaluate the feasibility of a future partnership that can accommodate the company’s hiring plans, as well as benefit its employees and the local community,” the company stated.
HQ2 represents a $5-billion investment by Amazon and as many as 50,000 high-paying jobs.
The corporation has said the new site will be equal to its current campus in Seattle, which has 33 buildings and more than 40,000 employees. It’s been estimated that Amazon’s first North American headquarters has put $38 billion into Seattle’s economy as a result of Amazon’s direct investments.
The final decision on the location of HQ2 is expected to be made later this year. The complete short list: Atlanta; Austin, Texas; Boston; Chicago; Columbus, Ohio; Dallas; Denver; Indianapolis, Ind.; Los Angeles; Miami; Montgomery County, Md.; Nashville; Newark, N.J.; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh, N.C.; Toronto; Washington D.C.