Media Reports Amazon Possibly Reconsidering NYC HQ2
The e-commerce giant’s response to GlobeSt.com did not indicate Amazon was reassessing its selection of the Long Island City location.
NEW YORK CITY—The Washington Post reported that two people with knowledge regarding the Amazon HQ2 deal say the e-commerce and tech company is reconsidering its choice of Long Island City, Queens. The article noted the sources said Amazon executives had internal discussion to reassess New York City and to explore alternatives. The article cited local opposition as the reason.
A spectrum of New York voices has responded to Amazon’s HQ2 decision. It was heralded as a coup for jobs and the economy. Others protested with concerns about the tax breaks and that Amazon’s arrival would disrupt the neighborhood, driving up prices displacing long-term residents.
In November, Governor Andrew Cuomo, Mayor Bill de Blasio and New York City Economic Development Corporation president and CEO James Patchett announced Amazon’s HQ2 decision, applauding it as a major success for New York City with Amazon bringing 25,000 jobs. The State and City offered Amazon a combined $3 billion package in tax incentives.
An Amazon spokesperson responded to GlobeSt.com’s inquiry about whether it was considering a different location outside of New York City for its new headquarters with the following statement:
“We’re focused on engaging with our new neighbors—small business owners, educators, and community leaders. Whether it’s building a pipeline of local jobs through workforce training or funding computer science classes for thousands of New York City students, we are working hard to demonstrate what kind of neighbor we will be.”
In addition, Amazon pointed to a HarrisX survey, commissioned by Amazon. It showed 69% of registered New York City voters supported the HQ2’s selected location. The approval was stronger in Queens (80%) and those living in the State Senate District 12 (77%).
The Washington Post noted that a group of political leaders including Congresswoman Alexandria Ocasio-Cortez, City Council Speaker Corey Johnson, City Council Deputy Leader James G. Van Bramer and State Senator Michael N. Gianaris had criticized the deal. They had questioned the allocation of tax dollars and the clout of large corporations.
In response to the news headlines, the New York Building Congress sent a statement to GlobeSt.com urging politicians and residents to support Amazon. The organization’s president and CEO Carlo A. Scissura wrote:
“From the moment Amazon announced plans to open a second headquarters, there was no doubt that New York should be their home–and that is as true today as it was then. New York City is the new capital of the tech industry, and this is where Amazon belongs. Their move to Long Island City will have an incredible economic impact on the five boroughs, create tens of thousands of high-quality jobs and send a message to companies around the world that New York is the place to be.”
Amazon has not yet built or leased space in Long Island City. The Washington Post notes final approval from New York state for its incentives is not expected until 2020. The news outlet also pointed out that there have been no specific plans to abandon New York, and that Amazon could still use threats of leaving to leverage pressure in the deal.