by Sam Hieb
In case you hadn’t heard, several North Carolina cities are vying for Amazon’s second headquarters, known as HQ2. With that in mind, NPR analyzes the effects of such ‘mega deals’ on cities’ bottom lines:
When communities chase mega-deals, they’re hoping for an influx of well-paying jobs. That means more wealthy residents spending more money, boosting local businesses and maybe drawing new ones — things that are generally good for the economy.
“Our concern about [the Amazon] deal is that states and cities are going to overspend for the deal so badly that they’ll never break even,” LeRoy says. “If you as a mayor think, ‘Oh, I’ve gotta break the bank for this deal’ … what money will you have left to maintain the quality of life that you have?”
Either public services diminish, he says, or taxes go up for everyone else.
Tomorrow marks the deadline for cities to submit bids for HQ2.