Amazon chooses Virginia and NY as new headquarters

Marco Green
November 14, 2018

The drawn-out theater of Amazon's decision Tuesday to split its second headquarters between New York's Long Island City and suburban Virginia's Crystal City was met with a maelstrom of criticism from some local officials and professionals.

The US online giant is to invest some $5 billion (€4.4 billion) in the two sites.

Each location will get 25,000 jobs with six-figure salaries. There will also be new 8000-series railcars on the way as well.

- Amazon will also apply for as-of-right incentives including New York City's Industrial & Commercial Abatement Program and New York City's Relocation and Employment Assistance Program.

"A lot of people don't own but they've been living here renting for 15, 20 years, and they're getting priced out", said Barratt.

Alexandria Ocasio-Cortez, a newly elected member of Congress who represents Long Island City, the NY neighbourhood Amazon has chosen, said her office had received numerous calls from constituents expressing "outrage" about the tax benefits the firm is due to receive.

"I don't think we would have gotten near that", Mayor Martin J. Walsh said.

New York Governor Andrew M. Cuomo did a victory lap, issuing a statement touting the state's success in luring Amazon. This website is not intended for users located within the European Economic Area. In Arlington, Amazon is in line to receive $573 million, in exchange for delivering 25,000+ jobs.

Crystal City on the other hand may find it tougher, with just 3,100 units under construction and no major development projects over the last two years. The site also indirectly supports over 50,000 other jobs, Amazon said. Now, they're banking on its presence to create enough demand to benefit some of its graduates.

But Ocasio-Cortez sent out a series of tweets blasting the move, including one that said, "Amazon is a billion-dollar company". Pursuit will operate a job-training center at the site, the organization said.

"It's exciting because it will bring more people to fill all those highrises they are building", she said while walking her dog.

The company had more than 230 bids from U.S. cities before whittling the number down to 20 early this year.

But Crystal City isn't actually going away.

Despite the new supply, prices are high.

Let's hope the potential economic boost for NY isn't fly-by-night.

Without significant investment in new affordable housing, low-income tenants could be pushed out as landlords woo the higher-income newcomers.

Founder and chief executive Jeff Bezos said of the new headquarters: "These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come".

How will they get to work?

Amazon says one of the key factors in its search for the new headquarters was the ability to attract talent. Already-planned improvements coming to nearby LaGuardia and JFK International airports also will help ease the retail and shipping giant's activities.

Opponents of corporate subsidies said Amazon's choices prove taxpayer incentives matter much less than advertised. "We're well past that, and there's zero public justification for a package as rich as this".

Furthermore, it's more than likely that Amazon used its final bids from the competing cities as leverage in the deals it was most interested, thereby artificially inflating the worth of the deal.

Other reports by Click Lancashire

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