WINNIPEG HEART OF THE CONTINENT - WINNIPEG - Nathan M. Jensen
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WINNIPEG
HEART OF THE CONTINENT
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visit www.
AT IO N:
FO R M OR E IN FO RM
r Relations
Amazon.com Investo
on-ir@amazon.com
Darin Manney, amaz
/ir
www.amazon.com
Relations
Amazon.com Public
@amazon.com
Ty Rogers, amazon-pr
/about
www.amazon.com
nt Winnipeg
Economic Developme
yna@ edwinnipeg.com
Dayna Spiring, da g.com
elopmentwinnipe
www.economicdevMEDIA BACKGROUNDER WINNIPEG – AMAZON’S SPARK ON THE PRAIRIES At the centre of North America – easy access, short commutes, clean air, highly educated workforce. (continued on next page)
LOW COST GREEN CITY
• Least expensive city to operate a tech company • 99 per cent renewable energy from one of world’s
and a more affordable place for potential employees largest hydro-electric generating jurisdictions
to call home • One of the world’s largest untouched boreal forests
• #1 – Winnipeg was ranked the most Cost-Competitive within a two hour drive
City in the U.S. and Western Canada by KPMG in 2016 • More than 400 km (250 miles) of active
• According to KPMG Competitive Alternatives 2016, the transportation paths
overall effective corporate income tax rate in Winnipeg • Four miles of skating trails on our rivers
is 7.0 per cent, the lowest rate among the major
metropolitan areas in Canada • Over 1,300 urban parks
• 15.1 per cent lower operating costs than U.S. average
• 4.18 cents/kwh (less than 1/3 the cost of Boston) HOME TO INTERNATIONAL
• Lowest industrial and commercial land costs
INSTITUTE FOR
among major Canadian markets
SUSTAINABLE
HIGH LIFE DEVELOPMENT
• $330,000 average home cost (two-storey detached)
• $250,000 average condo cost (2 bdrm)
CONNECTED
• 20 minutes – average commute time
• Direct flights to most major North American cities
• One to two hours – time to the beach and
• Largest air-freight distribution centre in Canada
cottage country
• Direct rail connections to Pacific, Atlantic,
• Home to BellMTS Place, a top concert venue
Arctic oceans and Caribbean
• Home to NHL’s Winnipeg Jets and CFL’s
• One of North America’s largest truck
Winnipeg Blue Bombers
transportation centres
EDUCATED
NATIONAL GEOGRAPHIC • 20+ universities and colleges within an easy drive,
TRAVELER NAMED WINNIPEG including 7 major provincial and state schools
ONE OF THE WORLD’S
20
• 18,400 IT workers in Winnipeg today
BEST TOP 7
TRIPS
FOR 2016 RANKING
ON THE INTELLIGENT COMMUNITY FORUM’S
LIST OF THE MOST INTELLIGENT
COMMUNITIES IN
THE WORLD. TWICE.
A M A ZO N P R O P O S A L 91.2
MEDIA BACKGROUNDER
HOME OF CULTURE OTHER SUPPORT
• Canadian Museum for Human Rights City of Winnipeg
• World renowned Canada’s Royal Winnipeg Ballet • Tax Increment Financing grant. Value to be based
• One of the world’s largest collections of modern on real estate valuation. Requires City Council review.
Inuit art at the Winnipeg Art Gallery • The City is prepared to assist with land assembly
• Winnipeg Symphony Orchestra including possible inclusion of surplus City land.
• Assiniboine Park: Journey to Churchill • The City is prepared to consider financial support
for infrastructure investments.
THE CAMPUS Government of Canada
Option 1 - Downtown Winnipeg • Strategic Innovation Fund – flexible funding options
• 22 acres of land area with repayable and non-repayable options
• Heritage buildings, new buildings • BDC Capital – Invests directly into companies to help
• Connected campus (all weather) commercialize new tech.
• 15 minutes to airport • Canada Infrastructure Bank – Helps attract investment
to revenue-generating infrastructure projects.
• Campus airport extension
• Export Development Canada – Financing support
Option 2 - University of Manitoba for new facilities like the Amazon HQ.
• 107 acres of land area
• Greenfield site
3RD
• Connected campus
• 25 minutes to airport
LARGEST
• Campus airport extension
• Adjacent to U of M Smartpark
THE INCENTIVES AEROSPACE CENTRE
Province of Manitoba
IN CANADA
• Manitoba Research & Development
Tax Credit – $918.0 M
• Paid Work Experience Tax Credits – $10.0 M
• Green Energy Equipment Tax Credit – $16.0 M OUR CITY
• Manitoba Interactive Digital Media Tax Credit – $5.3 M • 812,000 + in metro area
• Manitoba Training Support – up to $30.0 M • 1.3 million in province
• Total Manitoba – up to $979.3 M • 454,900 in workforce
Government of Canada • 7.8 per cent workforce growth (2011-2016)
• Scientific Research and Experimental Development • 6.6 per cent unemployment
Tax Incentive Program (SR&ED) – $780.3 M • Strong immigration: +18,000 in 2016
• Total Canada – $780.3 M • Low median age of 38.1 years
• Combined Total – $1.76 B
10 TEAM MANITOBA100
STRENGTH THROUGH DIVERSITY.
MORE
THAN
LANGUAGES SPOKEN HERE.
DIVERSE, STABLE ECONOMY
Some of our corporate leaders:
• Great-West Lifeco (global headquarters)
• Wawanesa Mutual Insurance Company
• BellMTS
• TelPay
• Skip the Dishes
• 24-7 In Touch
• James Richardson & Sons, Limited (conglomerate)
• Monsanto Canada
• Cargill Limited
• Farmers Edge
• Boeing
• StandardAero
• GE Aviation
• New Flyer Industries (North America’s
largest bus manufacturer)
• Winpak (global packaging leader)
• Cangene
A M A ZO N P R O P O S A L 11FREQUENTLY ASKED QUESTIONS WHY WINNIPEG? Many reasons, but four stand out: 1. location 2. access to talent 3. low cost of business 4. high quality of life for less money. (continued on next page)
WHY WINNIPEG? mission to make Amazon a truly global company.
1. Winnipeg is at the geographic centre of North America. Canada is close to home, making travel and
As one of the world’s leading logistics and distribution communications seamless. It is also a jurisdiction
companies, that means something. The city is a short with friendly relations globally, a top-rated education
direct flight to most major North American cities and system and a highly respected immigration system
is connected to three oceans and the Gulf of Mexico that draws talent from around the world.
by direct rail links. Winnipeg is also home to a large Additionally, Winnipeg offers Amazon a gateway to the
concentration of trucking companies including several north. The city is already a main staging area for shipping
of Canada’s largest fleets. to Arctic regions. And its northern latitude gives it
2. Amazon already knows Winnipeg. Home to Amazon relatively short air links to northern Europe and Asia.
company Thinkbox, the city has more than 18,400 Locating our second corporate headquarters in Winnipeg
IT workers now and hosts vibrant aerospace and helps insulate the company against dangers of natural
biotech sectors. and other disasters.
3. Amazon loves frugality and there were few other cities
that gave us the kinds of cost savings that Winnipeg WHAT WILL THE CAMPUS LOOK LIKE?
did. It has among the lowest hydro electric rates in Winnipeg pitched us two campus options: downtown or the
North America (important for running offices, and vital University of Manitoba. Both included an airport extension.
for heating and cooling AWS operations). When we did The Downtown Campus plan features millions of sq. ft.
the math, the Winnipeg location showed the potential to of office space spread through a mix of seven heritage
save hundreds of millions of dollars on an annual basis. buildings and new LEED certified high-rises. The buildings
4. While our Seattle employees may love the condo are connected by an all-weather walkway except the airport
they bought last year for $395,000, their Winnipeg extension which is a 15-minute drive away. The downtown
colleagues will be living in a detached home for more campus is well served by transit and bike paths.
than $100,000 less. Some may enjoy kicking back The University of Manitoba Campus is a greenfield option
on the beach or at the cottage an hour away. of up to several million square feet of office space in the
All of them will love the 20-minute commute city’s south end. It features 12 buildings in the
and 2,372 annual hours of sunshine. university’s SmartPark, home to research labs and
businesses. The campus is nestled in a bend in the Red
WHAT ELSE TIPPED THE BALANCE River, is served by rapid transit and is surrounded by
TOWARDS WINNIPEG? leafy neighbourhoods featuring condos, detached homes,
With Winnipeg we found a civic partner who truly restaurants and shopping. It is a 25-minute drive to the
understood our Day 1 philosophy. The city and province airport extension.
established a joint special office dedicated to providing
Amazon with concierge-style services for site selection, WHAT CAN WE DO IN WINNIPEG?
planning, permitting and recruiting. That office functioned Winnipeg has long been known as having a vibrant music
as a critical part of our decision-making as it became clear and arts scene. Major festivals and top touring music
the city was going to help us expedite the entire process. acts fill the calendar. Recent concerts included Miranda
Lambert, Deadmau5, Red Hot Chili Peppers, Roger Waters,
HOW WILL THIS STRATEGICALLY IMPACT Janet Jackson, Justin Bieber and Kanye West. Canada’s
AMAZON’S BUSINESS? Royal Winnipeg Ballet is one of the most famous ballet
Amazon’s long-term mission is to be the world’s most companies in the world. The city is home to the NHL’s
consumer-centric company. To achieve that goal, we Winnipeg Jets, the AHL’s Manitoba Moose and the CFL’s
feel strongly that we need to set down roots in other Winnipeg Blue Bombers. Its minor league baseball team,
countries. Having some corporate functions located in the Winnipeg Goldeyes, won the American Association’s
jurisdictions outside the United States symbolizes our championship this year.
A M A ZO N P R O P O S A L 131.3 FREQUENTLY ASKED QUESTIONS DOESN’T IT GET COLD IN WINNIPEG? LIKE REALLY COLD? We cannot tell a lie. Winnipeg gets cold in winter with bright blue skies and fine white snow that glistens in the sunshine. The city has made winter cool with miles of skating trails lined with international architecturally- designed warming huts, a lavish Scandinavian-style outdoor spa and vibrant winter festivities. There’s plenty to do indoors too from restaurants with nationally-renowned chefs to art museums, clubs and dazzling concerts. WHAT ABOUT SALARIES? Our Winnipeg employees will be paid the same as their colleagues at Day One and elsewhere. What you do with the savings is up to you. Did we mention there is an international airport in Winnipeg? WHAT ABOUT BENEFITS? It’s Canada, so, you know, free health care. Did you know that Canada’s government health care system is ranked among the top 10 in the world and having it stands to save Amazon nearly $600 million a year once the campus is at full capacity. Plus Amazon will provide competitive benefits packages. MORE ABOUT THE INCENTIVES? The governments of Manitoba and Canada have generous tax credit programs that we anticipate will bring up to $1.76 billion in cash incentives over time. Additionally, the City of Winnipeg is prepared to consider Tax Increment Financing and other programs to assist Amazon in assembling and developing real estate. TIF funding is not yet quantified, but could be significant. A recent $400 million development in Winnipeg qualified for nearly $20 million in TIF funding. WHAT ARE WE GOING TO CALL THE WINNIPEG HQ? Jeff liked the idea of calling it Aurora Borealis HQ. 14 TEAM MANITOBA
A M A ZO N P R O P O S A L 15
16 TEAM MANITOBA
2 CITY OVERVIEW
HELLO WORLD, DAY 1 IN WINNIPEG We solved Ebola here. More than 10,000 people died during the West Africa Ebola outbreak of 2015. Thanks to scientists half a world away in Winnipeg, that outbreak may be the last time humanity will need to battle that horrific disease. (continued on next page)
Why should Amazon care about where the Ebola vaccine The restaurant industry didn’t even know it needed Skip
was created? Because it’s symbolic of how Winnipeg the Dishes. Now thousands of restaurants depend on it
solves problems and succeeds. And it’s symbolic of how as a more efficient home delivery option while millions
Amazon will thrive when it selects Winnipeg for its of consumers enjoy the convenience of a good curry
second corporate headquarters. or bento box or poutine at home.
We are smart. We collaborate. We cooperate. We care. Likewise, Chris Bond founded Thinkbox Software (an
We have a global perspective. Amazon company) in Winnipeg, which provides creative
Winnipeg has been a centre of commerce for more tools and software for many different kinds of projects
than 6,000 years, and while we have enjoyed great leaps including the world’s largest feature films. Backed by a
forward during that time, we are reaching a zenith as team of talented software developers and visual effects
a major centre of commerce and innovation. Amazon experts, Thinkbox technology has gone on to be used in
will prosper here like our virology lab has. engineering and medical industries to create, visualize
and modify datasets as large as city streets and as
The seeds of the Ebola vaccine were planted here more small as microscopic cells.
than 30 years ago. Our city leaders came together to
clear the way for the National Virology Lab (the only Level But you know about Thinkbox already.
Four Bio Security facility in Canada). Winnipeg is now
home to some of the world’s leading virology experts.
This critical mass was possible because of the talent
that existed beforehand, but also because the
governments, universities and private enterprise
collaborated to make it happen.
WE ARE SMART.
WE COLLABORATE.
WE COOPERATE.
GLOBAL
WE CARE.
WE HAVE A
PERSPECTIVE.
Winnipeg born Dr. Frank Plummer led the team SHORTENING YOUR FIRST AND LAST MILE
that created the Ebola vaccine. A world-renowned We can help you make your first mile (into the office
HIV researcher first, Dr. Plummer is typical of the every morning) amazing and the last mile (to your
kind of world-leader you’ll find here: humble, amazingly customers) as effortless as possible.
intelligent, truly collaborative and transformative.
Imagine the new Amazon Canadian headquarters
BRIDGING THE LAST MILE FOR EVERY in a dynamic downtown campus. Thousands of your
RESTAURANT EVERYWHERE employees in leafy neighbourhoods that let them get
into the office with an average commute time of just
Joshua Simair is a Winnipeg leader of a different kind. 20 minutes. Cycling to work will be popular with miles
As the co-founder of Skip the Dishes, Josh led a team of dedicated bike lanes leading into the core from around
determined to radically improve restaurant delivery the city. Transit offers clean, low-stress ways into the
service. His vision was to give customers better choice core every day too, including on the city’s expanding
and better service, while also giving a delivery service rapid transit system.
to every restaurant who wanted one.
A M A ZO N P R O P O S A L 192
HELLO WORLD, DAY 1 IN WINNIPEG
SPEED TO MARKET
Speed to market is key. We get that.
Winnipeg is at the geographic centre of North America.
We’re an hour from the U.S. border and our airport is the
largest freight distribution centre in Canada. We are
a major North American rail hub with direct access
to ports on three oceans (Pacific, Atlantic, Arctic) and
the Gulf of Mexico. And we are home to some of the
continent’s largest trucking operations because we
are remarkably well connected by road.
Our location has always made us a trading hub. Today
we have CentrePort Canada, North America’s largest
inland port, growing next to our airport. CentrePort
The power grid is fed by renewable hydro-electric offers 20,000 acres of high-quality, affordable access
generating stations in the province’s north. Manitoba to tri-modal transportation including three Class 1
Hydro is a net exporter of this clean energy to nearby railways and our 24/7 global air cargo routes.
jurisdictions including Minnesota and Wisconsin. The grid
is so reliable that your engineers forget about it; your DEDICATED AMAZON SUPPORT OFFICE
power bills are so low, your CFO (almost) forgets about Amazon will have a dedicated office – jointly sponsored
them. AWS loves everything about it. by the City of Winnipeg and the Province of Manitoba –
Diverse restaurants line the streets around the campus to provide complete support for government relations,
while food truck wars and farmers’ markets provide a recruiting, community outreach and more.
change of pace. The downtown indoor walkway system Think of it as the Amazon concierge office. It will be there
becomes popular in winter months and offers a different to help expedite issues such as site selection, planning
way to explore the downtown. Multiple hotels are linked and permits. It will have tight relationships with local
to the campus, making it easy to host visitors. downtown development and business organizations
as well as the federal government.
The mission of the
office will be to THINK OF IT AS THE
AMAZON
facilitate a fast,
smooth move.
CONCIERGE
OFFICE.
The Winnipeg James Armstrong Richardson International COLLABORATIVE, CONNECTED BUSINESS
Airport is just 15 minutes from your downtown offices. AND POLITICAL COMMUNITY
You can stop in to visit the Amazon campus airport We pull together. And we can do it in a hurry if we need to.
extension building while offering you a highly secure
facility that is plugged into your distribution network – When there’s an urgent issue to discuss, it’s routine for
or go board a flight to Seattle, San Francisco, New York our business and political leaders to meet to advise one
or Washington. All major North American centres are another and act to resolve the issue. The offices of the
less than three hours away by plane. mayor and premier have a close working relationship,
20 TEAM MANITOBAIN 2017,
TECHCRUNCH
NOTED
“WINNIPEG HAS MANAGED
and they periodically call on CEOs and other community
TO REINVENT ITSELF INTO
leaders to weigh in with their counsel. Similarly, federal A TECH HUB FOR CENTRAL
ministers are routinely briefed and invited to participate
in local planning. CANADA, A REGION
We get things done when we pull together like this. LARGER THAN IRAN.”
We’d love to show you what we mean.
The article singled out Winnipeg-based companies
REGIONAL TECH HUB FOR CENTRAL CANADA such as Farmers Edge, a precision agriculture operation
that grew from Wade Barnes’ basement into an
international company by being nimbler than its
much larger competitors.
The city already boasts more than 18,000 IT workers
and the region boasts more than 20 post-secondary
institutions within an easy drive. That includes five major
provincial universities in Manitoba, Saskatchewan and
Ontario, and four major state universities in Minnesota
and North Dakota.
As a city, Winnipeg has also been growing faster than
that national average due to immigration. The city has
a diverse population base with large communities of
Chinese, Indian and Filipino families. Winnipeg is also
proudly known for its large Indigenous population,
which constitutes more than 10 per cent of the city.
VIBRANT FOUR-SEASON LIFESTYLE
Amazon is a world leader
in artificial intelligence
and using big data for
new, innovative purposes.
You won’t be alone.
Winnipeg is already home to several cloud computing
operations including those operated by BellMTS, Canadian
Tire as well as Hewlett Packard’s regional delivery centre.
Those companies selected Winnipeg in part because of
its central location, educated labour pool and availability
of inexpensive, renewable power. Servers don’t need to
be cooled when the temperature outside is -10 degrees
When you ask a Winnipegger about the benefits of living
Fahrenheit, and cooling them in summer is less expensive
here, lifestyle will be at the top of the list. There are few
here than just about anywhere else in North America.
places that can compete with the value for money offered
In 2017, TechCrunch noted “Winnipeg has managed here. You’ll find affordable housing in a vibrant four-season
to reinvent itself into a tech hub for central Canada, city with one of the largest urban forests in Canada and
a region larger than Iran.” plenty of parks spilling over into leafy streetscapes.
A M A ZO N P R O P O S A L 212
HELLO WORLD, DAY 1 IN WINNIPEG
OUR WINTERS ARE
MAJESTIC WITH We have a passion for the Winnipeg Jets (I’m sure you’ll
BRIGHT BLUE
agree that Patrik Laine should have won rookie of the
year last year), for living well and making the most
SKIES THAT
of every moment.
STRETCH And in summer, our historic rivers offer boating and water
IMPOSSIBLY sports, and are lined with jogging paths leading us to
FAR. artistic pursuits, top-notch concerts and world-renowned
festivals. Cottage country is all around us, with its long
sunny days spent floating on pristine lakes or lounging
on miles of white sand beaches.
Come for the clean air, stay for the most spectacular
sunsets on the planet.
And we’re just getting started.
WINNIPEG IS
AN ANCIENT
PLACE THAT THE MIND,
NURTURES BODY AND
SOUL.
Our winters are majestic with bright blue skies that
CULTURAL DIVERSITY
stretch impossibly far. Going for a skate on our river
system in February is a health tonic like no other. Winnipeg is the home of the Canadian Museum for
There is nothing like the feeling of your blades digging Human Rights. This is the only museum in the world
into the ice, your breath steaming, your friends smiling dedicated to this vital theme, rights that people
and laughing. We predict ear to ear smiles on the have been striving towards for thousands of years.
Amazon employees who commute to work this way. The spectacular building
The world’s top architects compete every year for the designed by architect Antoine OUR PEOPLE
privilege of designing warming huts along our river’s Predock is now our skyline’s COME FROM
skating trails. We made winter cool again. We have one
of the largest winter festivals in North America and we
most impressive jewel. And
it’s no accident that Winnipeg AROUND
draw visitors from hundreds of miles around to shop, was selected as the home of
THE
WORLD.
visit our galleries, dine in pop-up restaurants on the this special museum. We are
ice and take in a hockey game. a place and people of peace
and tolerance.
You should know that we love hockey. We should get
that out of the way. What’s not to love? It’s fast, exciting Our people come from around the world. More than 10
and delivers crunching hits in equal parts with amazing per cent of our population is Indigenous. Over the past
feats of athleticism. We would love to take you to a 300 years, they have been joined by waves of immigrants.
game. Our arena – BellMTS Place – has been named the Early settlers were French, English and Scottish. Later,
#1 fan experience in the NHL. The fans make it that way. they were joined by Ukrainians, Polish, Russians, Dutch
22 TEAM MANITOBAand Germans. More recently more immigrants have come Transportation and Distribution
from the Philippines, China, India, and Latin America.
It’s noteworthy too that Winnipeg is home to the National
Centre for Truth and Reconciliation and has the only
dedicated Research Chair in Human Rights (residing
at the University of Manitoba).
ECONOMIC DIVERSITY
Strategically located at the geographic centre of both
Canada and North America, Manitoba boasts one of the
most diverse economies to be found. With its rich natural
resources, vast hydro-electric capacity, fertile land for
farming, mature manufacturing base, and enterprising
and highly educated people, Manitoba has something for
every business person seeking steady economic growth. With a long history as a transportation hub, Winnipeg
It’s easy to see why discriminating investors in search is serviced by a global 24/7 cargo and passenger airport
of excellent investment opportunities and an exceptional (James Armstrong Richardson International Airport), three
quality of life make Manitoba home. Class I railways (Canadian National, Canadian Pacific and
BNSF Railway); and an international trucking hub that
includes two of Canada’s largest trucking companies
MANITOBA HAS ONE (Bison Transport and TransX).
OF CANADA’S MOST More than 45,000 people are employed in Winnipeg’s
DIVERSE ECONOMIES, transportation and distribution sector, which is
AND IS MOST comprised of 5,900 business establishments. The border
STABLE ECONOMIC
crossing south of Winnipeg at Emerson is the top-ranked
border crossing in Western Canada, processing more
PERFORMER IN than $20 billion in trade traffic annually.
THE COUNTRY. Aerospace
Manitoba has one of Canada’s most diverse economies,
and is the most stable economic performer in the country.
Real GDP growth in the Winnipeg CMA in 2016 was
2.4 per cent, exceeding that of Canada (1.3 per cent).
As of 2016, Manitoba’s population is 1.3 million, with Winnipeg
being the largest city in the province at a population of
812,000 – projected to exceed 1 million by 2035.
MAJOR BUSINESS SECTORS
The Manitoba economy is highly diversified, with a
balanced presence in several industries and consequent
economic growth that is among the most stable in
Canada. As a result, the province remains well positioned The home of Western Canada’s largest aerospace hub,
in the face of changing global economic conditions. Winnipeg is the most cost-effective city for aerospace
manufacturing among Western U.S. and Canadian cities.
A M A ZO N P R O P O S A L 232
HELLO WORLD, DAY 1 IN WINNIPEG
Winnipeg’s aerospace industry currently employs nearly
4,300 highly skilled workers, which grew by 30 per cent
between 2009 and 2014. More than 60 aerospace firms are
either headquartered or have major centres of operation in
Winnipeg, including Boeing Canada, StandardAero, Magellan
Aerospace and Cormer Aerospace. Winnipeg’s aerospace
companies produce and sell products and services valued Agribusiness
at nearly $2 billion per year.
Agriculture nourished Winnipeg’s initial growth and continues
The world’s three largest aircraft engine manufacturers to feed its success. James Richardson & Sons, the Canadian
– General Electric, Pratt & Whitney and Rolls-Royce – Grain Commission and ICE Futures Canada (Canada’s leading
operate engine test and certification facilities here, in agricultural exchange) are rooted in the city.
which approximately 85 per cent of the world’s new large
While commodity markets like grain and livestock are
commercial aircraft developmental engines are tested
substantially mature, extraordinary potential for growth
before they are approved for flight.
exists with functional foods, biocomposites and biofuels.
Advanced Manufacturing R&D efforts are fertilizing innovative new products for
the agri-food and fibre industries, for value-added food
processing firms, for manufacturing and technology
companies, and for the life sciences and biotech industries.
Annual sales within the food processing sector are about
$4 billion. Key companies include Archer Daniels Midland,
Diageo Canada Inc., McCain Foods, Peak of the Market,
J.R. Simplot Company, Nestle Canada Inc., Maple Leaf
Foods, Bunge Canada and Pillsbury Canada Ltd.
Information and Communications Technology (ICT)
Advanced manufacturing is Winnipeg’s largest industrial
sector, representing 13 per cent of the city’s GDP and
11 per cent of all employment or more than 65,000 people.
In 2014, manufacturing sector wages in Winnipeg were
16 per cent lower than the Canadian average.
Heavy-duty vehicle and equipment manufacturing
accounts for about 10 per cent of Manitoba’s annual
exports. Manitoba is home to North America’s largest Winnipeg’s large and small ICT firms contribute to
bus manufacturers (New Flyer Industries and Motor a vibrant, entrepreneurial and diverse sector serving
Coach Industries), Canada’s largest fire truck growth markets throughout the world. The city’s low
manufacturer (Fort Garry Fire Trucks), Canada’s largest business costs help ICT companies competing in these
manufacturer of harvesting equipment (MacDon global markets achieve better profit margins. Major ICT
Industries) and Canada’s only manufacturer of tractors firms – including IBM and HP Enterprise Services – have
(Buhler Versatile), as well as many other manufacturers operational hubs in Winnipeg. The city is also the
of truck trailers, recreational vehicles, and mobile headquarters of BellMTS, one of Canada’s largest
equipment for agricultural and resource-based industries. telecommunications providers.
24 TEAM MANITOBAThere are more than 1,400 companies operating in the largest insurance company – and its subsidiaries, it
ICT industry in Winnipeg. There are more than 18,000 serves the financial security needs of 12 million Canadians.
professionals employed in various technical, non-technical, Winnipeg-based IGM Financial Inc. has approximately
management and support occupations. ICT professionals $142 billion in total assets under management.
are employed across all sectors, impacting productivity and
innovation across all of Manitoba’s most important industries. Life Sciences
Manitoba is home to more than 170 active life science
Interactive Digital Media companies, about 70 per cent of which are in Winnipeg,
a city that boasts the highest concentration of life science
professionals of any city in Western Canada. Winnipeg
is a centre of excellence in the areas of infectious disease
identification and management, and a significant
concentration of the province’s activities in these areas
resides in the Canadian Science Centre for Human and
Animal Health, the Public Health Agency of Canada, and
the International Centre for Infectious Diseases.
An emerging industry, Manitoba’s interactive digital media
(IDM) industry is made up of some 200 local firms and
employs roughly 2,300 local professionals. Manitoba’s
local IDM companies develop websites and web apps,
mobile apps, video games, virtual reality (VR) games
and products, visual effects and motion graphics, and
interactive educational software. A large segment
of the industry is also focused on interactive marketing
and social media.
Financial Services
Canada’s largest mutual fund company and largest
insurance company are the cornerstones of our financial
services sector. With subsidiaries in Canada, the U.S. and
Europe, Great-West Lifeco Inc. and its companies have more
than $1.2 trillion in consolidated assets under administration.
Through its Great-West Life Assurance Company – Canada’s
A M A ZO N P R O P O S A L 253 CAPITAL OPERATING COSTS
A combination of factors gives Winnipeg a highly • a convenient mid-continent location with cost-effective
competitive cost structure: transportation links and intermodal facilities, providing
• a productive, well-educated and multilingual labour shipping by road, rail, air and sea, enhanced by
force that consistently generates competitive labour CentrePort Canada, the country’s first foreign trade
costs, among the lowest unemployment rates, the zone and inland port; and
highest overall labour force participation rate, low • among the lowest electricity costs in North America.
turnovers and high productivity rate in Canada;
• a favourable business cost environment, including COMPETITIVE LABOUR COSTS
competitive office and land costs, reasonable When compared to other large metropolitan areas
construction costs and affordable taxes; specializing in the ICT sector, Winnipeg has very
• an extensive network of R&D facilities and competitive labour costs. The following table summarizes
communication infrastructure supporting innovation the median wages per hour for a sample of key ICT
and productivity enhancements; occupations across Canada.
Annual Salary Comparisons – Selected Occupations, 2016
QA Software Software Software Software Systems
Programmer / Design Design Engineer Programmer Analyst
Tester Manager Supervisor
Halifax $85,605 $131,531 $121,451 $96,405 $82,098 $77,669
Regina $89,118 $135,359 $124,959 $99,317 $85,453 $81,356
Winnipeg $88,854 $136,250 $125,975 $99,951 $85,157 $80,598
Saskatoon $89,583 $137,292 $125,589 $99,859 $85,872 $81,714
Quebec City $89,878 $138,273 $126,674 $100,678 $86,203 $81,870
Edmonton $92,921 $141,369 $130,057 $103,605 $89,138 $84,819
Vancouver $92,811 $141,594 $130,244 $103,771 $89,067 $84,621
Toronto $94,317 $144,849 $132,476 $105,421 $90,480 $85,978
Montreal $94,550 $145,067 $133,230 $105,836 $90,669 $86,095
Calgary $96,751 $148,423 $136,014 $108,316 $92,773 $88,028
Oklahoma $109,355 $167,025 $153,526 $131,505 $108,516 $100,900
Kansas City $113,706 $174,254 $159,656 $136,289 $113,407 $105,910
Cleveland $113,683 $179,479 $159,645 $136,305 $113,355 $105,816
Austin $114,455 $179,346 $163,111 $138,233 $114,686 $107,008
Raleigh $115,443 $180,162 $163,623 $139,215 $115,376 $107,534
Minneapolis $118,588 $183,010 $165,966 $141,611 $118,482 $111,024
Richmond $118,785 $183,125 $166,577 $142,593 $118,333 $110,354
Chicago $124,820 $188,369 $172,643 $148,677 $124,406 $116,448
Seattle $129,215 $196,631 $178,992 $153,785 $129,014 $121,007
Boston $129,250 $198,065 $179,685 $154,001 $129,284 $121,377
San Francisco $141,617 $217,116 $196,172 $168,833 $141,344 $132,375
All costs are in U.S. Dollars, Exchange rate per U.S. Dollar: CDN$ 1.2900
Source: KPMG Competitive Alternatives 2016
A M A ZO N P R O P O S A L 273
CAPITAL OPERATING COSTS
CLEAN, RELIABLE AND AFFORDABLE ENERGY
When it comes to energy, Winnipeg stands apart from other
jurisdictions for three main reasons:
• among the lowest electricity rates in North America
• one of the most reliable power delivery systems in Canada
• surplus of existing power generating capacity
Average prices of electricity in North American cities ($CDN) 2016
Power: 50,000 kW, Consumption: 30,600,000 kWh, Voltage: 120 kV, Load Factor: 85%
EDMONTON 4.02
WINNIPEG 4.18
OTTAWA 4.52
CALGARY 4.80
ST. JOHN’S 4.90
MONTREAL 4.90
TORONTO 4.99
CHICAGO 5.40
VANCOUVER 6.08
REGINA 6.71
MIAMI 6.85
MONCTON 7.25
HOUSTON 7.54
DETROIT 7.62
PORTLAND 8.21
SEATTLE 8.52
NASHVILLE 8.85
CHARLOTTETOWN 9.12
HALIFAX 10.02
SAN FRANCISCO 13.56
NEW YORK 14.10
BOSTON 15.68
0 2 4 6 8 10 12 14 16 18 20
Electricity Average Prices - Cents per kWh
Source: Hydro Quebec, April 1, 2016
28 TEAM MANITOBANatural Gas
For Commercial users of less than 680,000 m^3 annually of natural gas, these are the current natural gas rates from
Manitoba Hydro’s subsidiary Centra Gas. Larger users of natural gas have a more complex rate structure.
Commercial Natural Gas Rates as of August 1, 2017
Rate Class Units of Small General Large General
Measurement Service (SGS) /1 Service (LGS) /2
Basic monthly charge $/month $14.00 $77.00
Primary Gas – quarterly rate service $/m^3 $0.0921 $0.0921
Supplemental Gas $/m^3 $0.1559 $0.1559
Transportation to Centra $/m^3 $0.0538 $0.0516
Distribution to customer/ customer sales service $/m^3 $0.0866 $0.0357
/1 SGS: is available to customers who use less than 680,000 m^3 of natural gas annually. Typically more
economical for customers using 13,770 m^3 or less vs the LGS class.
/2 LGS: available to customers who use less than 680,000 m^3 of natural gas annually. LGS is typically more
economical for customers using more than 13,770 m^3 annually.
https://www.hydro.mb.ca/regulatory_affairs/energy_rates/natural_gas/current_rates.shtml
Low-cost Renewable Energy 16.00
14.56
• Manitoba has the lowest published
energy costs in North America for 14.00
business
• 99% of electricity generated in Manitoba 12.00
is from reliable and renewable sources
• Power SMART program: savings 10.00
Cents/kWh
incentives for businesses 8.40 8.52
8.00 7.47
Figure 1: Hydro Cost Comparison for General Service
6.48
(Medium Loads) – 300kW (333KVa) 120,000 kWh
6.00
Source: Manitoba Hydro
4.00
2.00
0.00
A M A ZO N P R O P O S A L 293
CAPITAL OPERATING COSTS
LEAST EXPENSIVE CITY FOR TECH
According to the CBRE Research 2016 Scoring Canadian Tech Talent Report, Winnipeg is the least expensive city to
operate a tech company and a more affordable place for potential employees to call home. Based on a company with
500 employees and a 75,000-square foot office, the cost is $30.7 million per year, $9 million cheaper than Calgary and
$6 million cheaper than Toronto.
Office rent, which is the second highest cost for tech
companies besides employee salaries, is one of the lowest
in the country. The average asking rent per square foot “WINNIPEG IS THE
in Winnipeg is $23.54, compared to almost $40.00 in LEAST EXPENSIVE CITY
TO OPERATE A TECH
Vancouver. Meanwhile, the average rent there for a purpose
built apartment is $925 per month, and roughly $1,200 in
Vancouver and Toronto.
COMPANY… AND A MORE
Estimated 1-year costs by market: wage and rent AFFORDABLE PLACE FOR
obligation for typical tech firm in Canadian cities ($M)
POTENTIAL EMPLOYEES
Typical Tech Firms Estimates: 500 Employees, 75,000 Sq. Ft. TO CALL HOME.”
– CBRE
Note: Total estimated cost consists of rent cost, tech talent wages,
support non-tech wages, and management wages.
Source: Statistics Canada, CBR Research
30 TEAM MANITOBALABOUR FORCE
2016 average weekly wages by CMA, all industries
MONTREAL, QC
QUEBEC, QC
OTTAWA-GATINEAU, ON/QC
Source: Statistics Canada
Annual Salary Comparisons – Selected Occupations, 2016
Occupation Winnipeg Canada
Management occupations [0] $34.50 $40.25
Senior management occupations [00] $51.65 $52.40
Managers in engineering, architecture, science and information systems [021] $33.50 $47.80
Administrative and regulatory occupations [122] $26.80 $28.80
Administrative officers [1221] $29.40 $27.65
Accounting technicians and bookkeepers [1311] $22.05 $24.80
Computer and information systems professionals [217] $36.45 $36.40
Source: Canada Job Bank
A M A ZO N P R O P O S A L 313
CAPITAL OPERATING COSTS
2016 Average Job Tenure by Province, All Industries
Source: Statistics Canada
TRANSPORTATION & DISTRIBUTION AVERAGE WEEKLY WAGES
Winnipeg offers access to a labour force comprised of hardworking and stable professionals, technicians and other
manufacturing workers. Low attrition rates help Winnipeg’s manufacturing firms reduce costs related to workforce
turnover and knowledge loss. Due to Winnipeg’s lower costs of living, labour rates for local employers are among the
most reasonable of any major city in Canada. Compared to the national average, wages in Winnipeg are competitive
for all transportation- and distribution-related subsectors.
Transportation and Warehousing Average Weekly Wages 2016
Location Truck Air Rail Warehousing
Transportation Transportation Transportation and Storage
Winnipeg $915.99 $959.06 $1,362.29 $780.06
Canada $979.78 $987.78 $1,395.41 $805.50
Source: Statistics Canada (Canadian Business Patterns, 2012)
Overall and ICT Sector Average Weekly Wages
ICT Average Weekly Earnings by Province, 2016
Location Computer and Telecommunications Computer
Electronic Manufacturing Systems Design
Canada $1,147.41 $1,222.87 $1,378.57
Manitoba $968.47 $1,007.10 $1,235.96
Source: Statistics Canada
32 TEAM MANITOBAICT Labour Productivity
• Manitoba’s labour productivity in ICT increased from $67 per hour in 2010 to $74 per hour
in 2015 representing a 2.1 per cent increase per year on average.
• Manitoba’s ICT labour productivity was the third highest among the other provinces.
ICT Industry Labour Productivity by Province, 2015
Source: Statistics Canada
A M A ZO N P R O P O S A L 333 CAPITAL OPERATING COSTS WINNIPEG OVERALL OPERATING COSTS WINNIPEG WAS RANKED THE MOST COST-COMPETITIVE CITY COMPARED TO THE U.S. AND WESTERN CANADA BY KPMG IN 2016 KPMG 10-year Total Cost Index, Overall Business Costs Source: KPMG Competitive Alternatives Connectivity and Competitive Telecom Rates Broadband connectivity The availability of broadband in Winnipeg is at 100 per cent with an 88.8 per cent adoption rate. A competitive telecommunications environment, with several alternative long-distance carriers, keeps rates low in Winnipeg. With a central time zone location, Winnipeg’s business hours are accessible and cost-effective across the continent. 34 TEAM MANITOBA
4 MAJOR TAXES IN MANITOBA FEDERAL & PROVINCIAL
4
MAJOR TAXES IN MANITOBA
Federal Value Added Tax (Goods and Services Tax) Manitoba Health and Post-Secondary
Individuals, businesses and other entities pay the Education Tax Levy
five per cent federal Goods and Services Tax (GST) The Health and Post-Secondary Education Tax Levy (HE Levy)
on most goods and services. Most businesses, including is a tax imposed on remuneration that is paid to employees.
manufacturers and processors, qualify for full input The HE Levy is paid by employers with a permanent
tax credits on the amount of GST paid on purchases establishment in Manitoba. Employers with total
made for business purposes where the firm is not remuneration in a year of $1.25 million or less are exempted.
the final consumer. Associated groups (associated corporations/certain corporate
partnerships) must share the $1.25 million exemption based
Manitoba Retail Sales Tax on the total of their combined yearly payroll.
The Retail Sales Tax is an eight per cent tax applied
to the retail sale or rental of most goods and certain CORPORATE TAX RATES COMPARISON
services in Manitoba. The tax is calculated on the Manitoba ranks on average when it comes to corporate
selling price, before the federal GST (Goods and income and investment income taxation in Canada.
Services Tax) is applied.
Federal, Provincial and Territorial Rates
Income Tax Rate: Canadian
Controlled Private Corporations
Income Tax Capital-Tax
Rate: General, Active business Rates Financial
Manufacturing income earned Institutions
and Processing in Canada to Investment (except Payroll Provincial
(M&P) $500,000 Income Tax Insurance) Tax Sales Tax
Federal Rate 15% 11% 34.67% 1.25% – –
Prov. Comb. Prov. Comb. Prov. Comb.
Manitoba 12% 27% 0% or 10.5% or 12% 50.67% 0% to 0% to 8% PST
12%* 22.5%* 6% 4.3%
Source: Price Waterhouse Coopers, Tax Facts and Figures, Canada 2017
36 TEAM MANITOBAEffective Corporate Income Tax
ACCORDING TO KPMG COMPETITIVE ALTERNATIVES 2016, THE OVERALL
EFFECTIVE INCOME TAX RATE IN WINNIPEG IS 7.0 PER CENT,
THE LOWEST RATE AMONG THE MAJOR
METROPOLITAN AREAS IN CANADA
AND 3.0 PER CENT PERCENTAGE POINTS BELOW THAT OF CANADA.
Detailed Results by City – Overall Effective Tax Rates
Location Corporate
Income Tax
Canada 10.0%
Winnipeg, MB 7.0%
Source: Competitive Alternatives, Focus on Tax 2016
WORKFORCE
Winnipeg’s workforce in 2016 is 454,900 strong and grew by 7.9 per cent over 2011-2016,
more than double the national average of 3.5 per cent.
Workforce Breakdown by Age Group
Source: Statistics Canada
A M A ZO N P R O P O S A L 375 SUMMARY OF PROPOSED SITES
DOWNTOWN CAMPUS
5.1
DOWNTOWN CAMPUS
Source:
CentreVenture
Potential Sites Sports, Hospitatlity & Entertainment District
Active Transportation Parks & Open Space
0 100 200 300 400 500
Transit Network Buildings Meters
Transit Stop Rails October 2017
Weather Protected Walkway System CentreVenture Mandated AreaDOWNTOWN CAMPUS These bulk standards may include a floor area ratio
Winnipeg’s downtown is the entertainment, cultural and maximum number of storeys.
economic heart of our city and our window to the world. Downtown’s Zoning District is defined as “Multiple Use
Occupying the northwest corner of downtown, the Sector” that is intended to encourage the range of uses,
Amazon campus will occupy multiple buildings and will sites, activities, and buildings typical to a diverse and
be connected with a redeveloped walkway system and vibrant central business district. This sector demonstrates
concourse. The campus will include existing structures a diversity of uses, including: office, retail, services,
which will be redeveloped and vacant sites that will have restaurants, entertainment opportunities, public
new facilities constructed. institutions, multiple-family residential, and mixed-use
parking facilities.
The Bay, a marquee heritage building,
THE BAY, will be one of the campus anchors. Level of Transit Service
A MARQUEE This beautiful, historic seven-floor The downtown campus is well served by Winnipeg Transit.
HERITAGE department store will be redeveloped Most city routes converge on downtown within a short
BUILDING, with additional floor plates added to walk of one or more of the downtown campus buildings.
WILL BE ONE OF THE the facility creating a mix of heritage
CAMPUS ANCHORS. These corridors have the most frequent transit service in
and modern building design. the city (buses every two to five minutes at peak times),
A redeveloped walkway system to the north of The Bay and the longest span of service hours in the city (at least
connects to a large downtown retail shopping centre and 06:00 am to 01:30 am, 7 days per week).
office complex which will be redeveloped with the addition Downtown is connected to the James A. Richardson
of two new towers to be located on each end of the mall. International Airport by two direct transit routes – the
To the south, a redeveloped walkway system will connect No. 15 Sargent-Mountain on Portage Avenue and the
The Bay to Winnipeg’s preeminent entertainment venue the No. 20 Academy-Watt on Graham Avenue.
BellMTS Place home to the NHL’s Winnipeg Jets. The arena Winnipeg’s radial transit network connects every
and walkway system also connects to the new $400 million neighbourhood in the city with downtown.
True North Square which includes a new large public
gathering space with numerous commercial retail locations Integration with Future Rapid Transit Plans
and two large office towers.
In addition to Stage 1 of the Southwest Transitway that has
Winnipeg’s downtown is in the process of constructing been in operation since 2012, Winnipeg has 6 Rapid Transit
several high-rise housing developments providing multiple Corridors outlined in its 2011 Transportation Master Plan:
housing options for staff within a short walk to the Amazon
• Southwest Transitway Stage 2 (Pembina & Jubilee to the
downtown campus.
University of Manitoba – under construction and set to
The Downtown Campus is connected to Winnipeg’s public open in 2020)
transit hub. The transit hub is also connected to the
• Eastern Corridor (downtown to Transcona)
expansion of Winnipeg Transit’s Bus Rapid Transit system
that will connect to all quadrants of the city. • Main Street (downtown to Inkster)
The campus will also include an airport extension building • Portage Avenue (downtown to Polo Park, with further
at the James A. Richardson International Airport. A proposed extensions beyond)
BRT line will give staff easy access to the airport extension • Northeast Corridor (from the Eastern Corridor
and to arrival and departure lounges. The facility is being to the Perimeter Highway)
proposed as an extension of the Downtown Campus to
• Southeast Corridor (from the Eastern Corridor
enable future development of Amazon distribution and
to Island Lakes/Royalwood)
fulfillment centres.
All routes for current and future Rapid Transit Corridors
Zoning and Permitting converge on Downtown Winnipeg, and will serve multiple
Winnipeg’s downtown is pre-zoned to allow most sites within the downtown campus directly.
development by right and without the need for public
hearings or Council approvals.
A M A ZO N P R O P O S A L 41UNIVERSITY OF MANITOBA SMARTPARK
H
Potential Site - 107 Acres University of Manitoba Campus
0 100 200 300 400 500
Active Transportation Parks & Open Space
Meters
Transit Network Buildings
October 2017
Transit Stop Rails5.2
UNIVERSITY OF MANITOBA SMARTPARK
UNIVERSITY OF MANITOBA SMARTPARK a weekday rush hour express service only. The No. 162/170
This site is located at the University of Manitoba, the operates from 05:30 a.m. to 02:00 a.m. on weekdays, and
province’s largest post-secondary institution with more from 06:00 a.m. to 02:00 a.m. on Saturdays. The No. 170
than 29,000 students. operates on Sundays from 06:00 a.m. to 12:30 a.m.
The U of M has leading Canadian faculties of science and The eastern end of Smartpark is served by most transit
engineering providing a pipeline of talent for Amazon. routes coming into the University of Manitoba. Service
on this side of the site operates 7 days per week, from
This site creates the opportunity for direct collaboration at least 06:00 a.m. to 01:00 a.m. and offers excellent
between Amazon and the key faculties reflective of the connections to downtown.
skill needs for the company.
Smartpark is connected to the James A. Richardson
Smartpark is home to numerous globally respected International Airport by either taking a No. 78 Crosstown
research facilities including the Richardson Centre for West to Polo Park and transferring to a No. 20 Academy-
Functional Foods and Nutraceuticals, RTDS Technologies Watt, or else taking a Route No. 160 or No. 161 Rapid
and Emergent BioSolutions. It has helped launch many Transit bus to downtown, and transferring to either
successful ventures including IMRIS, the Composites a No. 15 Sargent-Mountain or a No. 20 Academy Watt.
Innovation Centre and BASF Canada.
This site has first-class recreation facilities as part Integration with future Rapid Transit plans
of the campus including Investors Group Field home In addition to Stage 1 of the Southwest Transitway that
to the CFL Winnipeg Blue Bombers as well as numerous has been in operation since 2012, Winnipeg has 6 Rapid
concerts and other events. Transit Corridors outlined in its 2011 Transportation
Winnipeg’s expanded BRT system connects Smartpark to Master Plan:
Winnipeg’s downtown core as well as other quadrants of the • Southwest Transitway Stage 2 (Pembina & Jubilee
city providing access to multiple housing options for staff. to the University of Manitoba – under construction
Transportation infrastructure for car and public transit and set to open in 2020)
provide easy access to the James A. Richardson • Eastern Corridor (downtown to Transcona)
International Airport. • Main Street (downtown to Inkster)
Time to Operations – Planning Policy • Portage Avenue (downtown to Polo Park, with further
Context & Zoning extensions beyond)
U of M Smartpark is appropriately zoned to support • Northeast Corridor (from the Eastern Corridor
Amazon’s proposed uses. to the Perimeter Highway)
Level of Transit service • Southeast Corridor (from the Eastern Corridor
to Island Lakes/Royalwood)
Transit service varies significantly throughout the large
Smartpark area. Smartpark has two transit routes that Only the far eastern end of Smartpark is served
pass directly through it – Route No. 51 and the No. 78 by the Southwest Transitway.
Crosstown West. Route No. 51 operates on weekdays from
06:30 a.m. to 1:15 a.m., and on Saturdays from 07:00 a.m. to
09:00 p.m. The 78 Crosstown West operates on weekdays
from 06:00 a.m. to 11:00 p.m. and on Saturdays from 07:00
a.m. to 07:00 p.m. Neither route operates on Sundays.
The periphery of the Smartpark site is served by
numerous additional routes.
Along Pembina Highway, it is served by three Rapid Transit
routes – the No. 137, No. 162 and No. 170. The No. 137 is
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