Amazon confirms new HQs in NYC and Virginia

Ivan Schwartz
Ноября 15, 2018

Never mind that the Toronto Region bid offered no special tax incentives.

The new Washington metro region headquarters will be located in National Landing, in Arlington, Virginia, and the New York City headquarters will be located in the Long Island City neighbourhood in Queens, across the East River from Midtown Manhattan and the United Nations.

Amazon is set to receive up to $1.2 billion Dollars (roughly $1.59 billion CAD) in tax credits through New York State's "Excelsior" program, as well as an additional $325 million Dollars (roughly $430.55 million CAD) as a cash grant from the "Empire State Development" fund. Median household income around Amazon's planned campus is $130,000 a year, poverty is half the city average and new buildings were going up long before the tax overhaul.

What did NY have to offer? "It hands out a lot of hefty incentives, a lot of long-term incentives".

Virginia is offering more than $500 million with similar restrictions, and will also spend some $200 million in infrastructure improvements including in mass transit, as well as create a new campus of Virginia Polytechnic Institute on the site. But other business and individual taxes are higher in NY.

Virginia Tech announced a new Innovation Campus in Northern Virginia on Tuesday.

"We won the real estate broker lotto", said Benaim.

"We know that nearly three-fourths of our candidates say that salary is important", said Patel, whose firm regularly surveys thousands of Amazon's job applicants each year. That law created a program to encourage development in so-called opportunity zones, including parts of Long Island City.

Yes, we're hearing about new infrastructure, and boatloads of money coming to the shores of each of these fair cities, in the form of six-figure salaries, and the economic ripple effect that will follow.

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It wasn't immediately clear whether Plaxall is selling the sites or leasing them to the tech company, nor how much it could receive.

Rapidly growing Long Island City, in the borough of Queens, is an old manufacturing area where warehouses are being replaced with apartment-filled glass towers. "We're in a very different world now".

A separate study commissioned by the state predicted that Amazon would generate $186 billion for the state economy over the next 25 years. "We will continue to stand up against what can only be described as a bad deal for NY and for Long Island City".

"We are excited to build new headquarters in New York City and Northern Virginia", said Jeff Bezos, founder and CEO of Amazon. And he said the deals would pay off in the long run in jobs and tax revenues.

"This is a big win for Virginia - I'm proud Amazon recognizes the tremendous assets the Commonwealth has to offer and plans to deepen its roots here", said Governor Ralph Northam of Virginia. That is especially concerning, he added, when entrepreneurship rates are falling and cities are struggling to nurture homegrown businesses.

This decision comes after more than a year of Amazon playing the options game, hearing what pretty much every city in America was willing to offer, behind closed doors, protected by the confidentiality of non-disclosure agreements. "I find that lack of engagement and the fact that the negotiations excluded the City Council - which is elected by New Yorkers to guide land use projects with communities in mind - extremely troubling".

But subsidies were likely only one piece of Amazon's equation, and a small one at that, said Tom Stringer, a site selection consultant with advisory firm BDO.

The company said at the time that the new premises would create as many as 50,000 jobs and cost at least $5bn to build and operate. That deal is expected to bring just 13,000 jobs. Though Amazon has said it's committed to preserving affordable housing, its arrival will unavoidably act like an "accelerant" on the property market, pushing poor people farther out, said Nina Janopaul, chief executive officer of the Arlington Partnership for Affordable Housing.

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