Amazon unveils NY and Virginia as new HQs

Wednesday, 14 Nov, 2018

There were early signs that Amazon had its sights set on NY and northern Virginia.

Many guessed that Bezos would choose NoVa because his home and The Washington Post headquarters is here too.

There can be major economic upsides for a city or metro region in landing a large company like Amazon.

Performance-based direct incentives of $573 million based on 25,000 jobs created with an average wage of over $150,000.

It's official. Amazon on Tuesday announced New York City and Arlington, Virginia, as the locations for new headquarters.

The 500,000 square-foot facility known as HQ2 was expected to include $5 billion in private investment and create as many as 50,000 new high-paying jobs.

There was tough competition between State and local governments to house Amazon's "HQ2".

How did it make its decision?

It turns out that Amazon and city officials have chose to rebrand an area of the community that encompasses Crystal City as "National Landing".

Each city offered tax incentives to the e-commerce giant, including in NY where the company said it will receive performance-based direct incentives of $1.525 billion - meaning it won't receive money if it doesn't follow through on its promises.

Amazon will invest $5 billion into the two locations, it said.

The analyst added that the split helps Amazon avoid a problem of too much growth or congestion in one location.

"Right now, Toronto is a beacon for investment, for smart people and for global companies".

Amazon will also receive as-yet unspecified incentives from New York City.

Amazon selected the Long Island City neighborhood in the NY borough of Queens, across the East River from Manhattan, and the Crystal City section of Arlington, across the Potomac from the USA capital Washington, where Amazon plans to create a new neighborhood called National Landing.

So what about those tax benefits?

The project is expected to bring in 25,000 jobs for the New York City community, with the potential for 40,000.

Some of the funds will go to improve transport, parks and other infrastructure in the neighbourhoods.

He added: "While other locations may be disappointed not to have secured Amazon's favour, it does not mean they will miss out entirely".

In this case, the ability to recruit highly educated workers seemed to be the top concern, said Mark Muro, a senior fellow at the Brookings Institution, a think tank in Washington.

In the release the university quoted university President Tim Sands, "Launching the Innovation Campus is a watershed moment for Virginia Tech and a great day for the commonwealth we are committed to serve".

Google, for example, is also planning a major expansion in NY.

Amazon didn't say what, exactly, the employees hired to staff its new offices would be working on.

The company received 238 proposals before narrowing the list to 20 in January.