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Business Column

Building an Amazon headquarters in Syracuse could save the city

Casey Russell | Head Illustrator

An Amazon headquarters could change the future of Syracuse.

The rust belt city of Syracuse may seem like an unlikely home for tech giant Amazon’s next headquarters. But if Amazon wants to showcase its philanthropic mission, it shouldn’t count out the region just yet.

North American cities had their last chance on Thursday to submit proposals to become the home of Amazon’s new headquarters, or HQ2. Central New York and three other New York metropolitan areas are just four of the 238 regions that applied. That number includes up-and-coming cities that leave the rust belt looking even more tarnished.

Amazon’s HQ2 could completely revitalize the winning city. The company expects to make a $5 billion investment into its second campus, creating 50,000 jobs with an average pay of $100,000, according to the list of requirements for regions applying for the bid.

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Anna Henderson | Contributing Design Editor



That’s an investment Syracuse desperately needs — and a perfect way for Amazon CEO Jeff Bezos to live up to his philanthropic goals of helping people “right now.” If Amazon builds HQ2 in Syracuse, it would show how one company can change the economic fortunes of an entire city.

Amazon has requirements for what it wants in a new home. The applying city must have a population center of at least 1 million people within a 30-mile radius, an international airport within 45 minutes and access to mass transit. The city can’t be more than 1 to 2 miles from the nearest highway and needs enough land for Amazon to build an up-to-8 million square foot campus by 2027.

Sadly, the Syracuse-Mohawk Valley bid is not considered a top contender to win the competition since its airport size, mass transit system and population size fell short of Amazon’s requirements. Leading companies like Amazon lean toward bigger cities on the rise, which is why Boston, Pittsburgh and Denver are strong contenders.

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Anna Henderson | Contributing Design Editor

Syracuse used to be home to large manufacturers like Carrier and General Electric. But now, three of the five largest employers in Onondaga County are hospitals. The other two are Wegmans and Syracuse University, and all five combined employ only about half the workers Amazon would bring in, according to the Onondaga County website.

But Syracuse may still have an advantage over these up-and-coming cities, said Eugene Liu, an economics professor at SU.

“In Syracuse, we have good higher education, medical infrastructure and defense technology with drones,” he said.

Strong engineering and information technology programs at SU and other central New York universities could provide a funnel of new Amazon employees. And central New York’s commitment to drone technology matches up well with Amazon’s foray into Prime Air deliveries.

Building HQ2 in Syracuse could have worthwhile benefits for Amazon as well. The headquarters could transform Syracuse’s long-term outlook and the company itself. CenterState Corporation for Economic Opportunity has stressed the $23 billion Amazon could save with Syracuse’s cheap labor market, cost of living and real estate.

This argument can be flipped to frame Syracuse as small and insignificant. But Syracuse should sell Amazon on the philanthropic benefits of providing jobs to one of the most impoverished cities in the U.S. and boosting its economic recovery.

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Anna Henderson | Contributing Design Editor

CenterState’s report mentions the high concentration of poverty in Syracuse, a problem Amazon could help alleviate. Unemployment in the United States is so low that companies with warehouses in the U.S., like Amazon, can’t find enough people to work their low-skill jobs. Amazon would have few issues hiring warehouse workers with Syracuse 15-percent unemployment rate.

Instead of building a headquarters in a city that’s already growing and isn’t in dire need of economic help, Amazon could jumpstart the Syracuse. It wouldn’t be the easiest area to build a new headquarters. But it could do wonders for public relations and social capital surrounding Amazon and other massive corporations.

With one risky move, Amazon could become the company that saved an American city.

Adam Friedman is a junior broadcast digital journalism and economics dual major. His column appears biweekly. He can be reached at arfri100@syr.edu and followed on Twitter @friedmanadam5.





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