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Detroit driving hard to land Amazon's second HQ

DETROIT — State, local and Canadian officials have offered Amazon a giant package of tax breaks and development incentives that would extend over decades if the e-commerce giant were to pick the Detroit and Windsor region for its second headquarters.

Confidential details of the tax breaks, as well as Detroit’s official 242-page bid book, were obtained by the Detroit Free Press. The documents describe how government officials are willing to forgo decades of future tax receipts in exchange for the economic benefits that they expect to arrive from landing Amazon’s headquarters.

For instance, Amazon would get to pocket all of the new state income taxes that many of its Detroit employees generate for 10 years, and capture half of those taxes for the next 10 years.

But the total cost of all the public subsidies for Amazon — state and local — was blacked out in the documents released to media organizations.

“Detroit is ready to partner with Amazon and we are focused on a long-term approach of creating value for you, our city and the entire region,” Detroit businessman Dan Gilbert, chairman of the region’s Amazon bid committee, wrote in the bid book’s cover letter.

“The road has been paved for Amazon. There is no better place for you to innovate and continue to improve the delivery of your customer service,” Gilbert wrote.

Amazon has said it will fill its second headquarters with as many as 50,000 new full-time employees over the next 10 to 15 years who would earn more than $100,000 a year in wages and benefits. All told, the headquarters would mean more than $5 billion in new investment, Amazon said.

Amazon has said that 238 cities and regions submitted proposals by the October deadline, and the company is expected to make its decision in early 2018. Details of Detroit’s proposal were first reported Wednesday by Crain’s Detroit.

The newly obtained bid documents pitch Detroit and its revitalized downtown as a low-cost city for doing business that is “breaking away from the blue collar stereotype” and can accommodate Amazon’s workforce without much trouble.

It says there is potentially 8 million square feet of office space available for Amazon in Detroit and Windsor, including more than 3 million square feet that could be available right now if Gilbert’s mortgage company, Quicken Loans, gave up some of its premier space around downtown’s Campus Martius.

It also mentions 200-plus acres of available land at the site of a shuttered mall in Southfield.

Detroit’s bid emphasizes how the Detroit-Windsor market would be relatively cheap for Amazon and its workers.

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