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Innovation Corridor

No Amazon HQ2 for Houston

Never really expected that we’d be a top contender, to be honest.

Amazon ruled out Houston as a candidate for its $5 billion second headquarters on Thursday, delivering a blow to local leaders who had hoped to lure the Seattle tech giant to a four-mile stretch between downtown and the Texas Medical Center.

The largest U.S. online retailer whittled down more than 200 proposals from North America cities to just 20, eliminating Houston but keeping the city’s longtime rivals Austin and Dallas on its short list.

Amazon’s decision marks a setback for local leaders including the Greater Houston Partnership, which led an effort last fall to pitch the city as an attractive market for the company to set down stakes.

“I believe this is a wake-up call for Houston,” GHP CEO Bob Harvey said in a statement. “While there has been growing momentum in the innovation space over the last couple of years, this is a clear indication that we have much more work to do as a region to grow our digital economy.”

Houston Mayor Sylvester Turner called Amazon’s decision ” disappointing and heartbreaking.:

But, he added, “It serves as a wake-up call that we must move at a much quicker pace. The city is well positioned, but it’s also is an indication that there is a lot of work that still needs to be done.”

[…]

In his statement Thursday, Harvey said Houston should focus on developing the Innovation Corridor and its technology sector further. He also said Houston should move forward with the proposed Houston Data Science Institute, a data center recently announced by the University of Houston.

“While we are the number one market in the country for STEM talent, we need to bolster our pipeline of digital tech talent that is relevant to tomorrow’s digital economy,” Harvey said. “This means working with our higher education partners across the region to develop and invest in programs that will produce the talent we need to succeed.”

But economists warned that Houston would rank low on Amazon’s wish list in the nationwide bidding war for a campus that could bring 50,000 jobs, saying the city lacked a robust public transportation system. Only 2 percent of the local population takes public transportation to work, according to Census data.

See here and here for some background. On the one hand, it’s always a bummer to miss out. On the other hand, I wasn’t excited at the thought of giving zillions of dollars in incentives and tax breaks to a behemoth like Amazon as deal-sweeteners. There’s too much of that going on already. Doing things like developing the Innovation Corridor and building a Data Science Institute, that’s fine and worthwhile as investments. And let’s be sure not to overlook the feedback about our public transportation infrastructure. Imagine where we could have been if we’d had a Congressional delegation that was unanimous in its support of of more robust transit system. We’ll have an opportunity to support that at the ballot box this November. If we’re serious about wanting to be more competitive with the cities we lost out to, we need to put our money where our mouths are. The Trib, Texas Monthly (which is very skeptical of the chase to lure in Amazon), Swamplot, and the Dallas Observer have more.

What Houston is showing to Amazon

Meet the Innovation Corridor.

Houston leaders hope to entice Amazon with a spot somewhere within the four-mile stretch of the Metro rail line that runs from downtown to the Texas Medical Center, an area they’re calling the Innovation Corridor – and the city’s best shot at winning the Seattle tech giant’s $5 billion second headquarters.

The rail line cuts through a part of Houston that includes some of the city’s largest companies and most prominent health care institutions, as well as Rice University, Hermann Park, the Museum District, Houston Community College, NRG Park and the collection of bars, restaurants and apartment complexes in trendy Midtown, according to a document outlining Houston’s confidential proposal.

City officials won’t say exactly where they want Amazon to plant a campus that could grow to more than 8 million square feet and house 50,000 high-paying jobs. But they have proposed multiple sites within the corridor, a slice of Houston that connects the city’s intellectual and cultural assets in the heart of its ethnically diverse population and bustling business hub.

“What’s remarkable is how concentrated all of this is in a four-mile-long area,” said Bob Harvey, president and CEO of the Greater Houston Partnership, the group behind Houston’s bid for Amazon. “Innovation Corridor seems to fit. It’s just like, wow, this is what Amazon is looking for.”

[…]

Local leaders have given Amazon its choice of undisclosed sites within the so-called Innovation Corridor, which, according to the document drafted by the Greater Houston Partnership, offers close access to two international airports, three interstates, 3 million workers, plus key game changers in business and an unparalleled array of amenities.

The document’s 32 bullet points highlighted the nearly 100,000 people who work in technology-related fields as well as the region’s low taxes, low cost of living, reasonable housing prices and eclectic neighborhoods and restaurants.

In particular, the document highlighted the city’s racial and ethnic diversity, which, Harvey argued, should appeal to a company that wants to attract millennial workers to a tech industry that has come under fire for its ethnic uniformity, particularly in Silicon Valley.

“As Amazon seeks to diversify its ranks at the executive, manager and professional levels, there is no better place to locate than in Houston,” city leaders said.

I still don’t think Houston’s efforts are going to amount to anything, but hey, it’s worth a shot. Given what Amazon has talked about for their new location, this is probably the best part of town to meet the requirements. Maybe we’ll learn something from the experience for the future.