Reston Spring

Reston Spring
Reston Spring
Showing posts with label Amazon. Show all posts
Showing posts with label Amazon. Show all posts

Saturday, September 15, 2018

What if HQ2 comes to Reston?


At last week’s DC Economic Club luncheon, Jeff Bezos stated that Amazon will announce the location of its second corporate headquarters—“HQ2”—by the end of the year.  The Washington metropolitan area figures prominently in Amazon’s consideration with nine sites identified as finalists.  One of the possible locations indicates it is likely to be located at the Center for Innovative Technology (CIT) near Dulles airport in the bulls-eye of the US internet.    

Regrettably, Fairfax County leaders are not planning realistically or inclusively to provide the infrastructure needed to support the promise of 50,000 new jobs dangled by Jeff Bezos resulting in an estimated 130,000 person population gain, according to the Metropolitan Washington Council of Governments (MWCOG).  Moreover, MWCOG expects Amazon’s arrival in the DC area to generate an additional population growth of 260,000 people region-wide in households with employees directly supporting Amazon. 

Reston and the CIT are at the epicenter of Fairfax’s development planning to support Bezos’ expected move.  They are along Metro’s Silver Line and bordered by generally low-intensity commercial development that is already being profitably redeveloped into a high-density residential-centric mixed-use urban environment. 

The county’s comprehensive plan for our masterpiece Bob Simon “planned” community—modified without meaningful resident knowledge, much less input, in recent years—is to triple Reston’s roughly 60,000 population and add about 40,000 jobs over four decades.  This is the kind of growth that Amazon will require.  This includes well over 90,000 new residents and the new jobs in its three Silver Line Metro stations and adding more than 20,000 residents to its redeveloped suburban village centers, changing them from neighborhood shopping sites into high-density mixed-use mini-urban centers.   Routinely awarded "bonus" density and development waivers are likely to drive that population growth up at least another ten percent.

Using FCPS' forecast methodology, that potential 180,000 or so population means more than 5,000 new students added to the 20,000 kids already in Reston’s overcrowded schools according to Fairfax schools.  More broadly, MWCOG estimates total added students from all Amazon-related employment at 87,000--a much higher per household student ratio than Fairfax County anticipates (0.2 vs. 0.087 students per household).  The county’s plan:  Add one elementary school and shift some boundaries.  Using the county’s forecasting methods, Reston’s citizen groups calculate that three new elementary schools and one each middle and high school will be required.   MWCOG's forecast would require a doubling of that number.

Open spaces—parks, athletic fields, woods, and lakes—are a cornerstone of Reston’s history and its planning principles.  More than 1,350 of Reston's total 10,000 acres is HOA open space while the county provides only about 110 acres of parkland in Reston.   Yet the county’s Reston plan calls for only about 12 new ballfields requiring less than 50 acres, about one-quarter the acreage mandated by its own urban parkland acreage standards.  There would be virtually no other public open spaces of consequence, maybe some small linear and pocket parks, playgrounds, and—yes—sidewalks. 

The county’s transportation plan for Reston is equally ludicrous.  In general, it hypothesizes without meaningful evidence, using a flawed methodology, and relying on unreliable self-monitoring that traffic will magically diminish as new bicycle and pedestrian facilities and high-density housing are added.   Its few substantial road improvement proposals—critically needed crossovers of the Dulles Corridor—are literally decades away and unfunded, and moving farther into the future despite a special added tax on Reston station area properties.  Finally, the Reston plan explicitly proposes no additions to public transit—none!

Nonetheless, the County is in no financial position to carry out even these insufficient plans as the delays and omissions in its transportation planning highlight.  It has insufficient reserves to buy land for schools, parks, or any other public facility, much less build them.  Moreover, it almost certainly has made generous secret tax concessions to Amazon to attract it here.  It could use its “AAA” bonding power, but the investment would be in the billions of dollars over time, put its bond rating at risk, and require substantial additional property taxes on all county residents while limiting the availability of bonds for other county needs.   And there is little land available in Reston for almost any of the needed infrastructure investments at any price. 

Moreover, as analysis of numerous research studies has pointed out, the cost of adding infrastructure to support residential development consistently exceeds the new tax revenue generated.  The result, of course, will be a sharp diminution in Restonians’ quality of life with similar, but lesser, lifestyle erosion county-wide.   

And, when it suits Jeff Bezos, Amazon will move on to “HQ3”—just as Exxon returned to Texas a four years ago—leaving behind the wreckage of the once-uplifting planned community of Reston.

Thursday, March 15, 2018

Some areas express concern over potential arrival of Amazon's second headquarters

While officials in the Washington, DC, area have been falling over backwards to lure Jeff Bezos to build his second Amazon corporate headquarters in the area, community spokespeople across the country have expressed skepticism (at the least) to the desirability of this big new neighbor.  Three articles have been published within the last couple of weeks highlighting this double-edged sword.

BizNow, Denver, March 1, reports:
Congested roads.  Escalating house prices.  A stressed education system.
People who have lived in Denver any length of time have witnessed these and other negative impacts on a city that is experiencing rapid growth.  And it scares some of them to think it could get worse if Amazon selects the Mile High City for its second headquarters, also called HQ2. . . .
Amazon HQ2 would have a profound effect where it lands.  It is expected to bring 50,000 jobs and as much as 8M square feet of office development to whatever city it selects, but the actual number of people moving to the city will be higher when factoring in spouses, children, and employees from other companies who follow Amazon's lead and relocate to the chosen region . . . .
Similarly, The Guardian reported, March 15:
What do you get for the man who has everything? When it comes to Jeff Bezos – the richest man in the world with around $130bn to his name – many US cities competing to host Amazon’s second headquarters have an answer: billions of dollars in tax incentives.
That proposition has united an ideologically diverse group of dissenters to Amazon’s grand HQ2 competition, ranging from rightwing organizations linked to the Koch brothers to the Democratic Socialists of America (DSA). Groups and individuals that would normally agree only to mutual disdain and distrust have somehow come around to the same conclusion: that Amazon’s decision to pit 20 cities against each other in a fight to host a future hub is a bad deal for everyone except Amazon. . . .
And the Wall Street Journal writes, March 15, that other corporations will demand the same tax benefits:
U.S. cities vying for Amazon.com Inc.’s second headquarters risk facing an unexpected consequence to victory: Other companies will demand the same hefty tax breaks conferred on the online retail giant.
Already, some companies with a presence in the finalist cities are calling for similar tax breaks from elected officials. It is a pitfall that often accompanies large tax incentive packages used to lure employers to a state.
In Washington, D.C., a group of tech companies wrote last week to the city’s mayor with a detailed list of requests—from training bonuses to property tax breaks—that the city is reportedly offering to Amazon. JPMorgan Chase & Co. Chief Executive James Dimon recently said that he plans to call up the governor from the winning city and demand a similar deal. Finalist cities like Dallas, Chicago and Columbus, Ohio, are all places where JPMorgan already has tens of thousands of employees, Mr. Dimon said. . . .
Fairfax County (and other area jurisdictions) need to be very careful that they are not giving much more than they might receive in any deal with Bezos and Amazon on its HQ2.   After all, they are committing other peoples money.
d more at: https://www.bisnow.com/denver/news/economic-development/tk-85602?be=rpetrine%40gmail.com&utm_source=Newsletter&utm_medium=email&utm_campaign=fri-02-mar-2018-000000-0500_dc-re?utm_source=CopyShare&utm_medium=Browser?utm_source=CopyShare&utm_medium=Browser

People who have lived in Denver for any length of time have witnessed these and other negative impacts on a city that is experiencing rapid growth. And it scares some of them to think it could get worse if Amazon selects the Mile High City for its second headquarters, also referred to as HQ2.

Read more at: https://www.bisnow.com/denver/news/economic-development/tk-85602?be=rpetrine%40gmail.com&utm_source=Newsletter&utm_medium=email&utm_campaign=fri-02-mar-2018-000000-0500_dc-re?utm_source=CopyShare&utm_medium=Browser?utm_source=CopyShare&utm_medium=Browser

Congested roads. Escalating housing prices. A stressed education system. People who have lived in Denver for any length of time have witnessed these and other negative impacts on a city that is experiencing rapid growth. And it scares some of them to think it could get worse if Amazon selects the Mile High City for its second headquarters, also referred to as HQ2.

Read more at: https://www.bisnow.com/denver/news/economic-development/tk-85602?be=rpetrine%40gmail.com&utm_source=Newsletter&utm_medium=email&utm_campaign=fri-02-mar-2018-000000-0500_dc-re?utm_source=CopyShare&utm_medium=Browser?utm_source=CopyShare&utm_medium=Browser
Congested roads. Escalating housing prices. A stressed education system. People who have lived in Denver for any length of time have witnessed these and other negative impacts on a city that is experiencing rapid growth. And it scares some of them to think it could get worse if Amazon selects the Mile High City for its second headquarters, also referred to as HQ2.

Read more at: https://www.bisnow.com/denver/news/economic-development/tk-85602?be=rpetrine%40gmail.com&utm_source=Newsletter&utm_medium=email&utm_campaign=fri-02-mar-2018-000000-0500_dc-re?utm_source=CopyShare&utm_medium=Browser?utm_source=CopyShare&utm_medium=Browser
Congested roads. Escalating housing prices. A stressed education system. People who have lived in Denver for any length of time have witnessed these and other negative impacts on a city that is experiencing rapid growth. And it scares some of them to think it could get worse if Amazon selects the Mile High City for its second headquarters, also referred to as HQ2.

Read more at: https://www.bisnow.com/denver/news/economic-development/tk-85602?be=rpetrine%40gmail.com&utm_source=Newsletter&utm_medium=email&utm_campaign=fri-02-mar-2018-000000-0500_dc-re?utm_source=CopyShare&utm_medium=Browser?utm_source=CopyShare&utm_medium=Browser