Amazon chooses Northern Virginia, NYC for new headquarters

13 November, 2018, 14:29 | Author: Brooke Harris
  • Amazon reportedly set to announce HQ2 split between New York City and Northern Virginia

In a follow-up story from last week, The Wall Street Journal is reporting that Amazon will split its highly-coveted HQ2 between New York City and Northern Virginia. It had said the new location would house roughly 50,000 jobs and represent billions in investments.

Since Amazon pared the list to 20 cities in January, speculation has been rampant, with lists handicapping supposed front-runners.

The new sites in NY and Northern Virginia will add to Amazon's existing headquarters in Seattle, which consists of 8.1m sq ft over 33 buildings, with 24 restaurants and 40,000 employees.

The New York Times had also reported last week that Amazon was finalizing plans to select the Long Island City neighbourhood of Queens, New York and the Crystal City area of Arlington, Virginia.

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It was reported earlier this month that Amazon was examining the option of creating two separate 25,000-person campuses, in part due to the need to hire enough tech talent and partly to ease housing and traffic concerns. The online retail giant, which is based in Seattle, narrowed its search to 20 cities vying for HQ2 at the beginning of the year.

It has got more than 200 proposals since then from cities and states promising billions of dollars of tax breaks and other inducements in exchange for Amazon's "HQ2".

Amazon's possible construction of a new headquarters in New York's Long Island City with the aid of tax incentives would amount to "massive corporate welfare", according to two New York State politicians. And forgoing too many future taxes that could come from a project as massive as Amazon HQ2 could strain local budgets for public services like roads and schools - or cause taxes to go up for local residents. The company also weighed whether it would be one of the largest companies in a city, something that might make it a magnet for the same kind of scrutiny it receives in Seattle over social problems.

The company said it would invest more than $5 billion over nearly two decades in a second headquarters, hiring as many as 50,000 full-time employees that would earn more than $100,000 a year on average. The U.S. Patent and Trademark Office began moving more than 7,000 jobs out of Crystal City in 2003. Amazon has said it might consider some also-rans for other projects. Some cities have said the process raised awareness for other potential economic-development deals.

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