Amazon HQ2 RFP

[stellarfun]

Typically, in reviewing the bids to a solicitation, the first and easiest culling is to determine which of the bids are responsive, and which are not. If Amazon says the site must have mass transit access, and a proposed site does not, that's a non-responsive bid, and gets cast aside. The review team then scrutinizes the responsive bids, and winnows those down.

In glancing through Somerville's bid, it appears that the only site that could have a 500,000 sq ft office building available for Amazon in 2019 is in North Point. IMO, it would have materially helped Somerville's bid if Cambridge had signed on. As Cambridge didn't, Somerville is left making promises for a site over which it has no jurisdiction or leverage.

 

[Equilibria]

The major, perhaps fatal, flaw in Somerville's bid is that its 'pie in the sky'. There is no commitment from Delaware North or anyone else to build / sell their towers to Amazon.

Amazon apparently wants to own its buildings in HQ2, not lease them. Delaware North may have zero interest in selling a building to Amazon, or Boston Properties, or anyone else with a permitted building for that matter.

Amazon was adamant that the site be ready to go, no zoning hassles, no infrastructure issues related to the site itself (e.g., great site, no utilities), etc. Particularly for the first building, which is why they would take an existing, empty building with 500,000 gsf.

Anyone betting that Somerville's mayor can get Delaware North to sign on the dotted line by January 2018 to sell their office building to Amazon?

Remember, nothing in Boston's proposal said that HYM will sell land or buildings to Amazon. It clearly implied that HYM's existing development team would take the lead on Phase 1.

Also, money talks here. I don't think the Mayor of Somerville needs to convince Delaware North to sign away an office tower. Jeff Bezos does that when he walks in with a check for a few hundred million dollars. Developers are looking for ROI, and that's great revenue with no continuing maintenance costs.

If they started in March, could the office tower at North Station be delivered by the end of 2019? I think it likely could...

 

[tangent]

They asked for 100 acres with a single owner and no zoning obstacles.

As a preference, but they also asked for multiple site options. Amazon also said they preferred a single regional authority making a proposal even if it included multiple sites... but Boston decided to ignore that part of the RFP.

That said I completely agree that it was good to put forward a site that appears to tick off all the high level requirements on paper... I just seriously doubt it can compete on quality for the 2019 phase 1 requirement.

If you consider a single 500,000 square foot building at Suffolk Downs... or even the first couple million square feet. Suffolk Downs is going to take some time to develop into that full build out vision they put forward.

 

[tysmith95]

People are forgetting that assembly has 2 million square feet of shovel ready office space.

 

[Ruairi]

People are forgetting that assembly has 2 million square feet of shovel ready office space.

Yup
https://boston.curbed.com/2016/10/18/13317134/assembly-row-somerville-development-5-middlesex

 

[tysmith95]

Yup
https://boston.curbed.com/2016/10/18/13317134/assembly-row-somerville-development-5-middlesex

That plus the two blocks between Partners and the new apartments/condos.

Both have work that could start immediately.

Also in future stages you could take over Home Depot or some of the strip mall. Also Sullivan has bunch of parking lots that could be built on. Between Sullivan and Assembly you have the majority of space that Amazon needs. Plus 8 million square feet is a best case scenario, it'll most likely be smaller then that.

 

[stellarfun]

Yup
https://boston.curbed.com/2016/10/18/13317134/assembly-row-somerville-development-5-middlesex

This is what the Somerville bid says regarding Assembly Square/.

Within Four Years: 1,823,196 square feet of office space

Includes 250,000 square feet of build-to-suite office space at Assembly Row
[Development by Federal Realty Investment Trust]

Cresset owns 5-7 Middlesex Avenue, a former theater site in Assembly Square. Laying the groundwork to complete all major entitlements in 2018,

Cresset expects to break ground in 2019 for 1.7 million square feet of commercial space.

^^^^ 5-7 Middlesex Ave., owned by Cresset, is the focus of Somerville's pitch for Assembly Square.

By my reading, 250,000 sq ft is all that Somerville puts on the table for the Assembly Square site by 2019.

 

[tysmith95]

This is what the Somerville bid says regarding Assembly Row.


^^^^ 5-7 Middlesex Ave., owned by Cresset, is the focus of Somerville's pitch for Assembly Square.

By my reading, 250,000 sq ft is all that Somerville puts on the table for the Assembly Square site by 2019.

Approvals could be quickened if Amazon comes. I don't think it's any different then Suffolk Downs with being shovel ready.

Yes Suffolk Downs is larger but Assembly/Sullivan still has enough space imho.

I also think the state should get rid of the Malden commuter rail stop, and add one at Sullivan that includes the Nbry/rport line and the Haverhill Line.

 

[stellarfun]

Approvals could be quickened if Amazon comes. I don't think it's any different then Suffolk Downs with being shovel ready.

Yes Suffolk Downs is larger but Assembly/Sullivan still has enough space imho.

The Somerville bid made no such promises. If Somerville believed the process could be accelerated, they should say so. It is not up to Amazon to read between the lines and find something that's not there in black and white.

Regarding SD, I believe the owner, O'Brien, said he would retain ownership of the land, execute a ground lease, Amazon would build and own the buildings.

I think most REITs are looking for long-term returns from the buildings they own, and have less enthusiasm for flipping properties. But enough money will buy anything.

 

[tysmith95]

The Somerville bid made no such promises. If Somerville believed the process could be accelerated, they should say so. It is not up to Amazon to read between the lines and find something that's not there in black and white.

Regarding SD, I believe the owner, O'Brien, said he would retain ownership of the land, execute a ground lease, Amazon would build and own the buildings.

I think most REITs are looking for long-term returns from the buildings they own, and have less enthusiasm for flipping properties. But enough money will buy anything.

True. Neither bid is perfect. However I believe the Somerville locations have much more potentional.

I have a feeling that Walsh didn't go along with Somerville because Charlestown NIMBY's are some of the worst in the area (look at the Charlestown project redevelopment).

 

[dshoost88]

The HQ2 effect on Massachusetts, no matter what Amazon decides

This is one of the most satisfying articles I've read yet about what Amazon's HQ2 means for Massachusetts whether it comes here or not. And it's set up as an open AMA for author Scott Kirsner, who seems to know quite a bit about the company. I left a question in the comments regarding the Suffolk Downs site and hope he responds soon.

 

[tangent]

The HQ2 effect on Massachusetts, no matter what Amazon decides

This is one of the most satisfying articles I've read yet about what Amazon's HQ2 means for Massachusetts whether it comes here or not. And it's set up as an open AMA for author Scott Kirsner, who seems to know quite a bit about the company. I left a question in the comments regarding the Suffolk Downs site and hope he responds soon.

Interesting take on the Willy Wonka esque aspect... I see the point that they seem to have a company culture that is very guarded and secretive... Kinda like Apple and maybe they would go for more of a space ship self contained campus which has badges and gates and security to keep away the people that make a living on trying to figure out what Amazon is going to do next.

I just don't see that in what they have created for HQ1, unless they are looking for something totally different in HQ2. It seems they really go for the downtown Seattle thing where they really are just adjacent to Seattle's downtown and part of a city grid where their "campus" is nothing more than a collection of buildings which are nearby each other. Where security starts at the building lobbies not at some campus gates.

 

[dshoost88]

^^I don't really think of the Suffolk Downs site plan as some mega-secure, gated community. Is it removed from downtown? Yeah, but the site plan overall looks to fill in the gap between East Boston and Revere (... and Winthop and Chelsea to a degree, too). HQ2 or not, this stands to improve connections across the site and facilitate smarter growth along an underused transit corridor.

 

[shmessy]

^^I don't really think of the Suffolk Downs site plan as some mega-secure, gated community. Is it removed from downtown? Yeah, but the site plan overall looks to fill in the gap between East Boston and Revere (... and Winthop and Chelsea to a degree, too). HQ2 or not, this stands to improve connections across the site and facilitate smarter growth along an underused transit corridor.

The oil tanks have to go.

That is all.

That being said, Kirsner's piece was indeed excellent.

 

[tangent]

^^I don't really think of the Suffolk Downs site plan as some mega-secure, gated community. Is it removed from downtown? Yeah, but the site plan overall looks to fill in the gap between East Boston and Revere (... and Winthop and Chelsea to a degree, too). HQ2 or not, this stands to improve connections across the site and facilitate smarter growth along an underused transit corridor.

The site plan yes, but the article and your question made it sound like the somewhat removed nature of the Suffolk Downs site might be a positive to an Amazon that likes to be secretive. Gates or no, I think Amazon is going to look at the relative isolation of the campus away from downtown as a negative not a positive when evaluating sites.

But yes, I think it will be good to see Suffolk redeveloped.

 

[Ruairi]

Dunno why, but I hadn't thought of Providence. That makes a whole pile of sense to me.

 

[fattony]

Dunno why, but I hadn't thought of Providence. That makes a whole pile of sense to me.

So small though.

 

[tysmith95]

Dunno why, but I hadn't thought of Providence. That makes a whole pile of sense to me.

Doubt it. Would be awesome though.

 

[stick n move]

Amazon Bid Locations | MA

Theres a few places in Massachusetts being pitched for the Amazon bid and future east coast HQ location. Gov Baker is pitching 26 different locations to Amazon for their relocation to the state. They can be posted and discussed in this thread.


Suffolk Downs:

https://www.bostonglobe.com/business/2017/10/19/boston-submits-its-bid-for-amazon-aiming-for-jobs-and-transformation/2fy1tW4NIPyUmZ8BiPcwyI/story.html

Widett Circle:

The Seaport:

Union City:

http://www.bostonherald.com/business/technology/2017/10/gov_baker_pitches_26_potential_amazon_hq2_sites_in_massachusetts

 

[stick n move]

Re: Amazon Bid Locations | MA

Allston yards:

NorthPoint Cambridge: