Doc 2018-33119 Page: 1 of 14 f <■L ■■■rk<-'.' '>2.'-’ U’ . ;7 ;'■;■■■<\ ■■?■;. ., „ <7;-?■- ■?■'.' ; •.''>".-?.i.'': ? " 7 vS Proposal 1 October 19, 2017 .■ I. Doc 2018-33119 Page: 2 of 14 .. - ■■ .. .■GyV'-'" Dear M r. Bezos: Located in th e p o p u la tio n ce n te r o f N o rth A m erica, Gary, Indiana, has always had a fo rm id a b le place in th e w o rld e co no m y, in 1906, A n d re w C arnegie and his te a m chose th e site o n th e s o u th e rn t ip o f Lake M ic h ig a n as th e lo c a tio n fo r th e ce n tra l U.S. p la n t o f th e U n ite d States Steel C o rp o ra tio n . Today, th a t fla g s h ip is o n e o f th e la rge st pro du cers o f >■■.;■'. .”■ ■■ ■■.■'■■■'■ !■■ 1: ■"■■■ -■i:r’'’.i: , ; ■ ‘ ■”■■■■■■■■: ■ . .■■J.'i'rni-100 years a g o are still re le va n t tod ay. G ary is-i in te rs ta te highw ays, a n a vig a b le w a te rw a y, an in te rn a tio n a l a irp o rt, and a c o m m u te r rail in th e U.S. w ith such a rich c o n flu e n c e o f fu n c tio n in g tra n s p o rta tio n assets. A d d itio n a lly , as a c ity th a t enjoys a p o rtio n o f th e Ind ian a D unes N a tio n a l Lakeshore Park, a diverse c u ltu ra l he ritag e, a n d a s ig n ific a n t c o m m itm e n t to th e -'Greening o f Am erica," Gary is These in s titu tio n s w o u ld b e e x tra o rd in a ry in n o v a tio n p a rtn e rs fo r A m azo n. Finally, AMAZON HQZ'PROPOSAL CITY .OF GARY. INDIANA; Doc 2018-33119 Page: 3 of 14 :F.-: ? n.: -:;? :-.V Gary and surrounds ng communities represent one of Indiana's largest commerce centers. ; ‘T f f M T : ;S::: SThTC#! S tW As a consequence, the business community benefits from the state's business-friendly '■"■:■ '■■■ ■ ■ ■' r : r - r i ' d f .T i -■;':.vn■■■;■■;:I . , - .■ i:: ?:■ .■ ■ /.■ : ■:: ■ "■■ ■ climate. There are no inventory taxes in the state and the corporate tax rate is one of the lowest in the country. State regulatory agencies and universities have partnered with the ■ T ?7:' 7 ■ ■ . tcGfo c "-7;; :v;; : n ,?=■ business community to remove impediments and employ new techniques to development. Finally in a national climate rife with political polarisation, it is noteworthy that leaders with ■ different political affiliations collaborate regularly to benefit a shared electorate. The above factors would make the prospects of locating in Gary attractive, but there p-}.:.-/■•■.■■< ' are a fev; considerations that place the city head and shoulders above the rest. The rise and decline of the American manufacturing sector had a devastating impact on Gary's Otir region has one ot the most educated workforces and Gary is near eight major universities economy, housing, poverty rate, population, and other soda! demographics. But the resilience of its people and the existence of excess in fra stru ctu re capacity make Gary a "Prime" location for Amazon to continue its cutting-edge Innovation and create a new legacy. As Amazon continues to disrupt markets, meet the needs of its customers, and push their competition to the edge, Gary can support the company's profitability and commitment to providing a great environment for its employees, while giving the company an urban laboratory of transformation. This transcends the story of a company creating or locating In a community for Its benefit to the corporation and city joining forces to create a new paradigm. Gary, Indiana, represents much' more than Amazon's second headquarters; ■ ■:y ? ■ ■ ■ I ' ? : g , y y G g 'VI Igh.;■ k r ■ ?■ g'7 7 I?7 ; d/ \ -g:7■ ■ : ' 7 7 7 hf-"■b.;:?:■ ;;7-■ ' <■:' the Gary location represents the’opportunity for Amazon and- other corporate entities to fid h -fo W g h 7 7 7 :;'< < h 7 7 ;;c> ;.F::-;:^ -™ ..... create a headquarters of the future. fohy . :-m7 ■ i cn ■ ' Cf C“A7 ig-U:;n: 7 77 L I7:i?7'T>^f7fo:T.iF^F;:>.Tfo.rfo7.-7--' 7 'Tfoig 7 7 7 n .h f7 7 :7 7 :;h v gp gpf.: ■ ■ :. -.. . .< b e a d a u e rte rs . ■A m a z o n can h a v e . ■ ■ .th e /fre e d o m to ' ■■ c h a rt: its /c o u rs e in. ■:€ary a nd ean le a d , c i t y ’ s / r e b ir th o AMAZON HQZ PROPOSAL CITY OF GARY, i NOLAN A Doc 2018-33119 Page: 5 of 14 S ' ' -:- - ; ' ' S ® S I - u- . :.7,' s. ’ ' ;-, ’’T,■.I--- AMAZON HQ2 PROPOSAL I GITY OF GARY, INDIANA ' C s S 'S tP ? ■;. Y5,a-;Axx.-<- .-■-; V:. - .1- . . . . . . * 7' ' - 7^', Doc 2018-33119 Page: 6 of 14 a te c th b h s e d e co no m y. T he state is le a d in g th e c ha rge i to w a i'^s c re a tin g a n e w te c h e p ic e n te r in th e MidtA/est arid Is a ttra c tin g te c h co m p a n ie s to b u ild a n d g ro w o p e ra tio n In Indiana. C o m pa nie s across th e g lo b e are lo c a tin g in Ind ia n a . For exa m ple, Satesforce re c e n tly a n n o u n c e d th e y are is o n ly a shod: tra in rid e away. Ind ian a has as s tro n g d e v e lo p e r jo b s , a lo n g w ith $40 m illio n o f n e w in ve st- fiscal p o s itio n a n d b u sin e ss-frie n d ly e n v iro n m e n t th a t , m e rit t o Ind ian a t o esta blish its M id w e s t re g io n a l fo ste rs c o n n e c tio n s b e tw e e n in n o v a to rs and e n tre p re neurs t o c u ltiv a te th e necessary c o n d itio n s th a t drive- h e a d q u a rte rs. Here are 5 reasons Ind ian a is g a in in g < tra c tio n w ith te c h com p an ies; 5“ - < Ith Sf <3E- Indiana : Callforhib lA^shlhgtoh Texas D.t;. New York -B • A v fo tio n *T 74; .4 1 S Rolls-Royce Foundation AM,kZON };Q 2 PROPOSAL i b iT Y OF GARY, INOJAMA W S W L ..' ■•■':?7 .'L', ■•"’ • ■, ,„ .;.-;s ;S i5 v 5 iY ""■7. ■ .' .LY.VySV..:"'; ; L '.L ' l ■.■■■'-S-'.-vlL-.; -. Doc 2018-33119 Page: 8 of 14 Highly-educated Workforce ■'-■■-''Pyrdue is a natboal treasure^ G ary has access to o n e o f th e m o st ed uca te d w orkforces aspedaliy for.propulsion. in th e c o u n try in fields th a t A m azon ne ed s;W ith oye r seven m illio n p e o p le w ith in a o n e -h o u r drive and 23,400 so ftw a re engineers c u rre n tly w o rk in g in o u r region, We are; w e ii-p o s itio n e d to im m e d ia te ly m e e t Am azon's '.We-don't just hire Purdue-irads, .but ■ we.-do hire all of them'we'cao^fad/'. e m p ld y m e rit heeds. W e also have a strong u n ive rsity . . . . system fo r th e fu tu re p ip e lin e o f em ployees w ith e ig h t ■ . ■ ■ -JeffBezos m a jo r un iyersities w ith i h an h o u r o f Ga ry a nd 7,700 tech in d u s try corhpanies in in dia ha alone. Purdue University w i t h y .E ^ lv e rs Itie s 'i w as rece ntly ra n ke d 15 th w o rld W ide fo r university-is­ sued patents^ a lon gsid e in s titu tio n s like Harvard and The N o rth w e s t Indiana area has n u m e ro u s program s Gal-Tech, a n d is h o m e to m o re su p e rco rrtp u tin g cap acity an d p a rtn e rs h ip s to d e v e io p th e p ip e lin e o ffu tu r e th a n airiy d th e r U.S. cam pus, w ith th re e o f th e to p 500 c o m p u te r science professionals. W ith th re e o f th e to p . sup erco m pute rs in th e w o rld . W ith th e launch o f Indiana 15 e n g in e e rin g pro gra m s in th e c o u n try near Gary, o u r University's In te rn e t? co lla b o ra tive e ffo rt to b rin g a u n iv e rs ity system is p re p a rin g th e best and b rig h te s t n a tio n w id e research and e d u ca tio n n e tw o rk online, en ginee rs o f th e fu tu re . Purdue a n d th e U niversity Indtana is h e lp in g t o p o w e r th e data th a t WilI d e live r th e o f Illinois are tw o o f th e to p 20 so ftw a re e n g in e e rin g n e xt w a ve o f in n o v a tio n t o th e g lo b a l m arketplace. pro gra m s in th e c o u n try an d c o n d u c t g ro u n d -b re a k­ in g research in c o m p u te r science. O u r un ive rsities' e n g in e e rin g pro gra m s have p ro ven tra c k records o f p a rtn e rin g w ith in d u s try t o create ta ilo re d pro gra m s to b e tte r prepare stu d e n ts fo r th e jo b m a rke t. 287,000 601,200 7,700 en ginee rs e x e c u tiv e /m a n a g e m e h t em p lo yees te c h in d u s try co m p a n ie s 69,800 C e rtifie d Tech Parks legal professionals 2nd 73,900 in n a tio n fo r ad van ced in d u strie s and te c h se cto r e m p lo y m e n t share 23,400 s o ftw a re d e velope rs 136,000 te c h i n d u s try em pi oyees a c c o u n tin g professionals Soufo?: EMSIj Indiana ExonomicQevelgpment Corporation ....... »§:?■ ;;A‘viAZQ^i-.HQ2;.pR0P0.SAi;i CITY OF GARY INDIANA ■ Doc 2018-33119 Page: 9 of 14 Wip Valparaiso U n iw s it y JL U JV i J U JCt 'y " ':« . F ' ^ ' K s ": T ¥ $ *13 tor science and engineering doctorates awarded: .;i.-: . . ■ . ; ; . U ... h .1 jt I-'-Pj : tj-, Square fee: of rosearch space in adence and sinoinseedno • 30 Northwestern. University CoHeges and universities w ith engineering degrees 12,608 enc' epcieiee■ir’O stoderUo in scbooi 11,400 Sdencs and engineering ■doctorates empEoyed-. !!h ii» !s in s titu te o f l e t h n o b g y HC'?- P’ar;?ov-ui Doc 2018-33119 Page: 10 of 14 .A b o o tth ^ Site ■. '.' "-/■■■■■■I--.... T he p ro p o se d A m azo n HQ2 site is an a m b itip u s u rb a n ren ew al in fill p ro je c t in th e h e a rt o f d o w n to w n Gary, ■T*raxtmhy to population center A d ja c e n t to th e d o w n to w n G ary S ou th Shore Line tra in s to p (c o n n e c tin g G ary w ith C hicagp, IL, and S ou th Bend, !N), th is p ro je c t fo o tp r in t e n c o rrip a s s e s n 0 acres sp a n n in g 19 sites. The p ro po sal is b ro ke n in to th re e '■\ , - ; r "'i ■.- Proximity to International airport phases/ w ith phase o n e p ro v id in g space fo r y o u r in itia l Proximity to iTsajor-highways ■and.arterlab ' ' ■ . c o n s tru c tio n needs. Site lo ca tio n s are a c o m b in a tio n o f p u b lic ly a va ila b le la nd an d p riv a te o w n e rsh ip , m u ch o f w h ic h has be en un use d o r u n d e ru tiliz e d fo r decades. Access to mass transit at site: T he C fty o f Gary, lo n g a ccu sto m e d t o t ig h t b u d g e ts The Amazon site; and a sm all p ro p e rty ta x base, has le arn ed h o w to g e t ■ In itia l a n d t o t a l s q u a r e - fo o ta g e ■ crea tive and in n p v a tiv e w h e n ad dre ssing redeveilop- . r e q u ir e m e n t s ' . m e n t and re cla m a tio n o f b lig h te d land. A d d itio n a l sites details. In c lu d in g an o p tio n a l g re e n fie ld site, are ■Fiber cOhrtectivity ' ' ; p ro v id e d in th e A p p e n d ix . S tre a m lin e d A s s e m b iy ' ■. ■ ■ ■ • • ' • a . '- ; ■ Cell coverage ■■ To stre a m lin e o u r a b ility t o assem ble a va ila ble land w ith o u t a surp lu s o f bu d g e t fu n d s, th e C ity o f G ary % Immediate has crea te d a u n iq u e p u b lic -p riv a te p a rtn e rs h ip C w ith MaiaGo- T his a g re e m e n t te n a cte d in July, 2016) u s t o m H e e d s . ' W h ile o u r p ro p o sa l id e n tifie s th e space A m azon needs p ro vid e s a s tra te g ic p a rtn e rs h ip b e tw e e n th e C ity o f to c o n s tru c t th e in itia l ro u n d o f HQ2 a n d th e space to Gary; G ary R e d e ve lo p m e n t C o m m issio n, a n d M aiaCo g ro w o ve r tim e , th e m o s t va lu a b le c o m p o n e n t th e C ity t o address th e p fP b le m o f lo n g -s ta n d in g in a c tiv e o f G ary can p ro v id e is th e fre e d o m to w o rk w ith us to p ro p e rtie s, M aiaC b p ro vid e s u p frp n t ca p ita l an d c o n fig u re th is p ro je c t to s u it y o u r visio n . O u r pro po sal pro fe ssio nal s ta ff n e e d e d t o a cq u ire b lig h te d and a n d c o n fig u ra tio n are m e re ly on e version o f an a lm o st a b a n d o n e d b u ild in g s and ta x -d e iin q u e n t p ro p e rtie s. O w n e rs h ip o f th e se assem bled sites r e v e r tto t h e C ity o f Gary, a n d M aiaCo shares in th e pro cee ds o f th e n e w ly a c tiv a te d sites w h e n th e y are sold. As p a rt o f th is p a rtn e rsh ip , th e C ity o f G ary has ta rg e te d spe cific lo c a tio n s th r o u g h o u t th e c ity an d has crea te d "M aiaC o D e sig n a te d P roject Areas': A ll phases o f th e A m azo n p r o je c t fa ll w ith in th e s e p e s ig h a te d P ro je c t Areas. endless v a rie ty o f po ssib ilitie s. You w ill have th e a b ility t o g ro w o rg a n ic a lly an d a d a p t to y o u r lo n g -te rm vision w ith o u t th e c o n s tric tiv e re s tric tio n s o f o th e r u rb a n in fill sites in la rg e r b u ilt- o u t u rb a n areas t h a t c a n n o t o ffe r th e fle x ib ility b e y o n d th e ir in itia l fo o tp r in t p ro ­ posed in th e ir bids. To in vo ke an im a g e o f o u r g re a te st n a tu ra l resource asset, th e Ind ian a Dunes, w e can p ro v id e an o p e n san db ox, w a itin g fo r y o u r te a m t o d ig in. W e w e lc o m e th e o p p o r tu n ity to co lla b o ra te w ith y o u to de sig n, plan , a rid b u ild a n e w fu tu re in Gary, AMAZON ■K02:P?OF’PSAL 1 CITY GF GARY, LNOIAN.A Doc 2018-33119 Page: 11 of 14 ^li■.■;'■■■■ '.\’^.•.'.?.-i”■■"■■■■■.■ ;■.'' ' ■'^ ■:■ ■;^■■■'■y'. '';.'■ ■.■.■■'■■"’".■■■V.■■■■■ ’•:■;■'■■ ■Commuter Line to d o u b ie track th e c o m m u te r ro u te Chicago, and all o f th e c o m m u n itie s in be tw ee n, to be co m p le te d b y fait 2020. This in v e s tm e n t wiSi m ake th e tr ip fro m C hicago to G ary a ro u n d 35 m in utes, and th e N o rth w e st Indiana Regional D e v e lo p m e n t A u th o rity projects th is w ill a ttra c t $2.5 B illio n in n e w in ve stm e n t in th e region o ve r th e n e xt 20 years. T h e S ou th Shore C o m m u te r Line con ne cts th e p ro - ■^Am azG n'Site^M tbitrahsit^oriented d e v e io p m e n to p p b r - 1 ■Tdhitj^s 'a rb u ild th e s t a t i o n ; < .h: Xf/AZCN. r i 02. PRO PO jiA e I O ny-oe^G A'RCf-lstbi AN A i. 3322mm 00239,: 92.58 000 MQEAWS 9.: ya (xi?.1 I. :75} a. . mam 29.. . a ?ma .M. .. Ewan? .Jl 1 . . - .illk" finarp . J-.. 35L . .I. . .. fang?! Jar . . . ?mum: J. .m?gg gg?a??ukn??ri Doc 2018-33119 Page: 13 of 14 {TIP) fo r th e B e lo w is a lis t o f a n tic ip a te d fin a n c ia l in ce n tive s o ffe re d im p ro v e m e n t P rogram to A m a zo n as th e re su lt o f th e Project id e n tifie d in its DOT Surface T ra n s p o rta tio n P rogram (STP) Funds. S e p te m b e r 7 ,2 0 1 7 R equest fo r Proposals. Financial OFTHOSM A -T O T A L F IlN IA N a A l. u tiliz a tio n o f U.5, in ce n tive s o ffe re d are based u p o n va rio u s in itia l a s s u m p tio n s a n d m ay v a ry d e p e n d e n t u p o n actual p h a sin g a n d im p le m e n ta tio n o f th e Project. O P T IO I^ B Proposal re q u irin g In d ia n a State Legislature Q P T iO N A a p p ro v a l w h ich w ill be in session Jan ua ry 8 ,2 0 1 8 th ro u g h H ig h Certaintty. The incentives offered herein vary in M arch 14,2018. n a tu re from the ap plicatio n p e rio d through the approval process, dependent upon sta tu to ry requirements. It is a n tic ip a te d th a t a ll incentives can reasonably be m ade ava ila ble w ith in a 4 to 12 m o n th p e rio d fro m in itia l request C e rtifie d Wlega T ech n o lo g y E x p lo ra tio n P a rk (C o m b in e d S ta te an d C ity In c en tiv e} The S tate o f In d ia n a is o ffe rin g a to ta l o f $2,750,000,000 in fin a n cia l in ce n tive s fro m c e rtific a tio n T he S tate o f In d ia n a is o ffe rin g a to ta l o f $ 1,510,504,400 o f an area an d re q u irin g a c o m p a n y to c o m m it to in fin a n c ia l in cen tives based u p o n lEDC a u thorized n o t less th a n $2.5 b illio n in ca p ita l In v e s tm e n t o ve r a th ro u g h : (i) EDGE o f re fu n d a b le co rp o ra te ta x credits p e rio d n o t to exceed 15 years w ith n o t less th a n 10,000 in th re e tiers o f years 1-10,5-15 a n d 10-20; (li) a Skills n e t n e w jo b s b e in g crea te d. A g e o g ra p h ic a l area E nh an cem e nt Fund T rain ing G rant fo r em p lo ye e tra in in g fo rm in g a u n iq u e a n d separate ta x in g d is tric t w o u ld be lim ite d to $5,000,000 pe r year fo r 20 years; OH) an established. The q u a lifie d c o m p a n y w o u ld b e e lig ib le In d u stria l D e v e lo p m e n t G ro w th Fund fo r in fra stru ctu re to ca p tu re u p to 100% o f th e c o n v e n tio n a l lo cal and im p ro v e m e n ts lim ite d to $2,000,000 p e r year fo r th e first state sales tax, local a n d state pe rson al in c o m e ta x 15 years, and (iv) W orkforce D e v e lo p m e n t in -kin d assis­ a n d local p ro p e rty taxes fo r a p e rio d n o t-to -e x c e e d 25 ta n c e related to stra te g ic ta le n t service d e v e lo p m e n t years fro m d e s ig n a tio n .T h e pro cee ds c o u ld be used t h e C ity o f G ary, In d ia n a is o ffe rin g a to ta l o f fo r site in fra s tru c tu re , la n d a c q u is itio n , b u ild in g and $792,930,000 in fin a n c ia l in ce n tive s based o n a p p lica ­ p a rk in g c o n s tru c tio n , ta le n t d e v e lo p m e n t and social tio n o f: (i) p ro p e rty ta x p le d g e o f in c re m e n ta l ta x fo r im p a c t. The s ta tu to ry la n g u a g e w o u ld re q u ire a t least a p e rio d o f 25 years; (ii) a c o m b in a tio n o f com m e rcial 10% o f th e ta x c a p tu re fro m th e park's ta x in g d is tric t a n d re sid e n tia l assessed v a lu a tio n d e d u c tio n s fo r 10 to be a llo ca te d to c o m m u n ity ta le n t d e v e lo p m e n t. An years; (iii) th e c a p tu re o f th e focal o p tio n in co m e tax. a d d itio n a l 10% w o u ld be d e sig n a te d fo r social im p a c t a n d sales ta x w ith in a Transit D e v e lo p m e n t D istrict; (iv) pro je cts. The c o m p a n y w o u ld be re q u ire d t o m a tc h a an o ffe rin g o f p u b lic ly o w n e d la n d fo r P roject de v e l­ p o rtio n the se fu n d s to use fo r th e sp e cifie d purposes. o p m e n t, a n d t o c e rtifie d e m p lo ye e s fo r reside ntial T he fu n d s w o u ld be c o lle cte d , c e rtifie d and d is trib u te d d e v e lo p m e n t in th e C ity; (v) a P rim e Perm ittin g Process o n an a n n u a l basis. d e p a rtm e n t o f th e C ity; r High C ity o f G a ry, Jndiarsa is o ffe rin g a to ta l o f $462,500,000 in fin a n cia l incentive:? lij b ro w n fie ld gra nts fo r re d e v e lo p m e n t purfSoses; a n d (viii) access to re g io n a l T ra n s p o rta tio n B-i m F IN A N C IA L A t^ A Z p N PRQr>OS'A{;[:OiTV