RTP exec: Amazon HQ2 would meet Park requirements to become a tenant

RESEARCH TRIANGLE PARK – The path is virtually clear for Amazon to establish its HQ2 project in Research Triangle Park should the company choose to do so and a deal is struck with the state of North Carolina.

So explains Scott Levitan, the chief executive officer of the Research Triangle Foundation, which oversees the Park.

The Research Triangle Park logo - RTP, NC

“The answer is ‘Yes,'” Levitan told WRAL TechWire in an interview when asked if Amazon’s project met the guidelines set by the covenants put in place to govern RTP operations.

Levitan also said in another interview that the Park has the capacity in land and infrastructure to support a project on the scale of HQ2, which Amazon has said will produce some 50,000 jobs over several years.

That total would double the number of people already working in the Park. IBM, Cisco, Lenovo, NetApp, Biogen, Cree as well as other technology and life science firms maintain sizable RTP operations as well as many other companies, small to international.

The Triangle is one of 20 metropolitan areas across the US and Toronto, Canada, that Amazon has declared as finalists for its second headquarters – thus the HQ2. Amazon is currently reviewing bids for the project. The company has said a decision about the location will be made this year,

RTP is believed to be on a short list of sites Amazon is considering across the Triangle, with three or more sites within its boundaries speculated as being considered.

Levitan [pictured above] would not comment, citing a non-disclosure agreement which is a standard part of most economic development negotiations.

RTP, which was founded in 1959 and is a not-for-profit venture, covers some 7,000 acres across Durham and Wake Counties. Already home to more than 250 companies, the Park has rules that outline what type of firms can operate there, what they can do, and how the land is used.

How Amazon qualifies

While some questions have been raised about whether Amazon should qualify, Levitan said the Internet giant meets those stipulations for two reasons.

A map of Research Triangle Park

“First of all, the covenants include the headquarters or regional headquarters of a company,” he said.

Levitan also noted that Amazon is more than an ecommerce company, thus meeting a second covenant requirement: Research and development.

“The research and development portion of Amazon definitely qualifies it to be within RTP,” Levitan said.

Amazon is actively involved in R&D for projects such as robotics and artificial intelligence.

Levitan became the Foundation’s CEO in August 2017. A veteran with more than 30 years of experience in real estate development, he quickly became involved in the HQ2 process.

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Amazon disclosed its plans late last year, and Levitan said the Foundation reviewed the company’s request for proposals to determine if the company met its guidelines.

“We do that for every buyer or tenant that comes into the Park,” he pointed out.

“They haven’t chosen a site, but what we do is an evaluation … We didn’t treat their RFP any differently than any other prospect.”

Levitan wouldn’t discuss any details about the negotiating process with Amazon.

The state of North Carolina through the Department of Commerce and the Economic Development Foundation of North Carolina is spearheading those talks. Representatives of those organizations and Gov. Roy Cooper have said repeatedly they can’t discuss details of any possible deals.

Another hurdle

However, one hurdle remains.

Even if Amazon makes a deal with the state and with RT Foundation, a contract would still need approval from the tenants and land owners in the Park.

Levitan said he did not expect that to be a problem.

“Any owner in the Park can challenge an application,” he explained. All owners, including the Foundation, and tenants can vote. But Levitan said if the Foundation has reviewed and approved an application the rest of the Park’s clientele is expected to go along.

“I haven’t been here for 60 years but it’s my understand that the tenants and owners defer” to the Foundation’s recommendation, he added.

The covenants

According to the RT Foundation website, the covenants “govern and provide guidelines to businesses that operate within the boundaries of the Park. … These covenants help serve as the identity statement for the Park.

“Specifically, the RTP Covenants outline that operations locating in the Park are required to include a high level of scientific input.

“Included in these uses are operations such as research and development; production and assembly; corporate, regional or divisional headquarters of knowledge based companies; data processing centers; nonprofit organizations; and educational facilities operated by UNC-Chapel Hill, Duke, or NC State.”

The website also notes another key part of RTP’s governance: The power of landowners and tenants to approve or disapprove companies considered for an RTP site: “These guidelines also provide landowners and tenants with the ability to vote on issues specifically pertaining to RTP.”

Ongoing development

Portions of the Park continue to be developed, especially in land adjacent to the south side of I-40 that is known as Park Center. Previously announced plans for the 100-acre plot includes: