Pioneering urbanologist Dr. Richard Florida, whose 2003 book 'The Creative Class' laid the groundwork for tech-driven inner city revitalization in areas like the Pearl, is giving San Antonio high marks for its handling of Amazon.com's high profile search for a second headquarters, News Radio 1200 WOAI reports.
Florida, who is in San Antonio for the national meeting of the Interational City County Managers Association, called Amazon's rush to seek out 'incentives' in the form of tax money to locate its 'second headquarters' in a city 'disgusting,' and he praised Mayor Nirenberg for taking a stand that the city will use tax money to improve city services, instead of giving it to Amazon's billionaire CEO Jeff Bezos.
"So to put more than one hundred American and Canadian cities through this is really disgraceful," Florida said. "I think its going to hurt their brand."
Little Rock Arkansas followed San Antonio's lead on Thursday, announcing it is pulling out of the running for what is being called 'HQ2.' Florida says the San Antonio move may be a tipping point, and may end the unhealthy effort by companies to use a location or expansion decision as a way to enrich itself at the expense of taxpayers.
"I think this may be the tipping point," he said. "It could be the start of communities saying 'you look like you may be a good company and you may be a good fit for us, but we are not going to bend over backwards, or whatever way you are going to make us bend over for this, we are going to do what's right'."
Florida agreed with Nirenberg that Bezos has already determined where he wants his second headquarters to be, the smart money is on Denver, and is doing this public bidding process simply to suck up taxpayer money. Nirenberg speculated that the taxpayer money that eventually lands Amazon may top the $3 billion in incentives that Wisconsin shelled out to attract cell phone maker Foxconn.
The Amazon headquarters is thought to include some 50,000 jobs and a $1 billion annual economic impact, but Nirenberg says San Antonio will spend its money enhancing the quality of life for existing residents and turn San Antonio into the sort of city where people who work for Amazon would prefer to live, adding 'giving away the farm is not our style.'
Florida says what job-hungry communities frequently don't realize is that while the wealthy company owner or CEO gets all the taxpayer cash, the city is left with the down side of the arriving firm, which in Amazon's case he says is not insignificant.
"The reason Amazon is looking to relocate part of its operations away from Seattle is that it has driven housing costs so high there, and has helped to create so much unevenness and inequality."