Toronto officially loses Amazon's coveted HQ2 bid

Cornelia Mascio
Novembre 14, 2018

Web giant Amazon is set to announce its new headquarters in New York City and Northern Virginia. That heated competition ended with the announcement Tuesday of two winners for the $5 billion development prize. It may not only be the home for firms promising 50,000 or more jobs, but Dallas could also be the place that five companies choose to locate (or relocate) creating 10,000 jobs apiece.

Plus, she points out: "Google has hired 10,000 people in NY without massive subsidies".

The company has said it helped boost Seattle's economy indirectly by US$38 billion between 2010 and 2016.

According to an article in the Washington Business Journal, National Landing is the new moniker for the area including parts of Crystal City, Pentagon City, and other areas of Arlington that will be the site of the new Amazon headquarters. "I think the NY taxpayer got a great deal".

New York City Mayor Bill de Blasio discussed the Amazon deal Monday night during his weekly television appearance, although he didn't confirm that the city had been officially selected.

According to Ocasio-Cortez, however, "Displacement is not community development".

Who will get the jobs?

The new Washington headquarters will be located in National Landing, in Arlington, Virginia, while the New York City headquarters will be located in the Long Island City neighborhood in Queens just across from Manhattan. Aside from its HQ2 decision, Amazon may also announce that other cities have won big projects, but it wasn't clear what form they might take or where they would go.

"We are excited to build new headquarters in New York City and Northern Virginia", Bezos said.

Meanwhile, Lina Khan, a senior fellow with the Open Markets Institute, wrote in a Twitter post on Tuesday: "Amazon extracting highly favourable terms, only to halve its promise and expect those same terms, is an exercise of bargaining power that will be familiar to numerous millions of merchants reliant on Amazon's platform".

"It's not just the Amazon jobs". The company plans to employee more than 25,000 people at each location. Pursuit will operate a job-training center at the site, the organization said.

Nix said the first big impact will be for renters, as those who come to the DC-metro area for work tend to rent out condos and apartments before making the bigger decision to buy.

It also led to a lot of free publicity for Amazon. The inflow of those workers could burden schools and transportation systems. That means tens of thousands of new residents in areas where housing supply is already tight. Some cities have said the process raised awareness for other potential economic-development deals.

When asked why New York's bid was so much higher than Virginia's at a press conference on Tuesday, New York Governor Andrew Cuomo pointed out that Virginia's personal income tax is lower than New York's. New York City changed the lights on the Empire State Building to Amazon's signature orange color. Investing in luxury condos is not the same thing as investing in people or families.

Those city tax credits aren't unique to the Amazon deal. 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-planned improvements coming to nearby LaGuardia and JFK International airports also will help ease the retail and shipping giant's activities.

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. That's based on a tax credit of $3,000 for each new employee. "These cross-state bidding wars are a waste of scarce public dollars that do nothing to move our nation forward".

New Jersey, Maryland and Missouri were all willing to shell out about $140,000 per job to bring the online retailer Amazon.com Inc.to their states.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE