What Is Amazon Promising New York City?

L.A. loses bid for Amazon HQ2 and thousands of possible jobs. Here’s why some experts are relieved

L.A. loses bid for Amazon HQ2 and thousands of possible jobs. Here’s why some experts are relieved

"I'm not against Amazon but I am against the way this is happening", Dixon said.

New York Governor Andrew Cuomo said the public expense - and the possible number of jobs - would be even higher in Long Island City.

Did Amazon just create a brand new neighborhood for its second headquarters?

For its headquarters, the company didn't go with the richest offer. He defended his administration's big incentive package to Amazon, which he said would create a 9 to 1 return on investment, as necessary for beating the "54 states" vying for HQ2.

"We are excited to build new headquarters in New York City and Northern Virginia", said Jeff Bezos, founder and CEO of Amazon. Amazon's payouts are dependent on the tech behemoth delivering on its promise of however many jobs, as well as its investments in local infrastructure.

Already, a NY state legislator has signaled he plans to introduce a bill to block the deal by phasing out the economic incentive statutes upon which the agreement is based. Almost 35 million Americans live in such areas, communities that in most cases have higher poverty and unemployment rates than other US communities or contain or are near pockets in desperate need of development.

In picking the locations, the company had stated preferences like "stable and business friendly environment", "metropolitan areas with more than one million people" and "communities that think big and creatively when considering locations and real estate options". Large government contractors have offices and lobbying operations there.

RICHMOND, Va. - Amazon will split its second headquarters between Long Island City in NY and Crystal City in northern Virginia, according to a person familiar with the plans.

Amazon's new presence would push down Arlington County's office vacancy rate, which was elevated following the financial crisis and federal budget sequestration, the Arlington Chamber of Commerce said.

"National Landing is an urban community in Northern Virginia located less than 3 miles from downtown Washington, D.C. The area is served by 3 Metro stations, commuter rail access, and Reagan National Airport - all within walking distance".

Virginia pledged a few other goodies, such as a commitment to "regulatory flexibility" in order to allow new technologies to operate in the area, as well as confidentiality for "all materials, communications, data, and information related to this Memorandum".

There was no reference in the memoranda to collaboration on preserving housing affordability, hiring locally, or working with local educational institutions. It promised to hire new teams and executives for its new location, saying it would be a "complete headquarters for Amazon - not a satellite office".

Still, the benefits of mass transit depend on NY and Washington maintaining and improving their systems - a severe challenge in recent years amid breakdowns, deteriorating tracks and rising expenses in both public transportation systems.

The company will invest $5 billion across the two campuses that will each accommodate more than 25,000 employees. Also, a cash grant of $325 million based on the square footage of buildings occupied in the next 10 years.

NY put up billions in incentives, while Arlington, just outside Washington, D.C., offered hundreds of millions. "We woke up yesterday with our whole world upside down", Dixon said. "So I don't have an idea about how they put together their transaction".

Long Island City already has the largest number of apartments now under construction in New York City, Localize said. The agreement also includes requirements for participation by minority and women-owned businesses in the construction process. Still, she says, Seattle "had a housing affordability and transportation problem long before Amazon's hockey-stick growth".

Although it wouldn't qualify as a "headquarters", Nashville won 5,000 jobs, with Tennessee kicking in $102 million in tax incentives including a job subsidy worth $13,000 per head.

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