When Amazon first announced the search for its second headquarters back in September, it seemed like the nation went into a frenzy. The company, which is based in Seattle, plans to invest an estimated $5 billion into its new headquarters, and it’s expected to create about 50,000 jobs in whichever city it chooses. The competition has been fierce, and after going through 238 bids from all over the country, Los Angeles has made Amazon’s list of top 20 finalists.

Courtesy of Bloomberg

According to Amazon’s request for proposal notice, the corporate giant has several preferences for their second headquarters. The cities that will be considered should be a metropolitan area that houses over a million people, have a stable and business-friendly environment, have excellent technical professionals, and have plenty of creative space and real estate options.

Although Los Angeles encompasses at least some of these qualities, Amazon has many cities to choose from. Among the company’s list of finalists include thriving cities, such as Atlanta, Austin, Washington, D.C., Chicago, Denver, Philadelphia, and Toronto. 

Amazon also expressed additional preferences for HQ2, including proximity to an international airport, access to freeways, a population center with retail and restaurants, and reputable schools. With this in mind, the move to LA’s westside would make sense.

Since Amazon’s media and entertainment subdivision, Amazon Studios, recently announced its move to Culver Studios in November, the company already has a strong presence in the area. Additionally, the city’s westside is located within a 25-minute drive from LAX and is home to educational institutions such as UCLA, Santa Monica College, and Pepperdine University’s graduate campus. Hordes of tech startups have already made their way into the westside of Los Angeles, and the neighborhoods of Playa Vista, Santa Monica, Marina del Rey, and Venice have already become part of the area’s growing “Silicon Beach."

Amazon Studios in Culver City / Techcrunch

Another request from the company is tax breaks. While the state and city of Newark, New Jersey are prepared to offer an estimated $7 billion (yes, billion) in tax breaks, Los Angeles hasn’t been as forthcoming. Regardless, considering that the city is known for its strict zoning regulations and policies, a letter from California Governor Jerry Brown offered hundreds of millions of dollars in tax breaks and up to $1 billion in incentives over the next decade if the online retailer chose Los Angeles for its HQ2. State incentives cover tax credits, employment training funding, and legislation that would streamline the environmental approval process. 

According to the LA Times, Los Angeles County has included six possible locations in their bid to Amazon, though specific locations remain undisclosed. There were at least ten Southern California cities that submitted bids to the company, some of which include Irvine, Santa Ana, Pomona, Riverside, San Diego, and a combined proposal from Long Beach and Huntington Beach. 

So now what happens? Over the next few months, Amazon will evaluate each location, while taking a more in-depth look at proposals. The company will consider whether the site would match in partnership, accommodate its hiring plans, and benefit its employees as well as the surrounding community. 

Amazon is expected to make a final decision by the end of this year.