Tuesday , January 18 2022

Amazon HQ2 verdict: Amazon split between Crystal City and New York


Amazon announced Tuesday it will open up a major outpost in Crystal City, New York, and New York City, to create up to 50,000 jobs between the two East Coasts.

Amazon founder and CEO Jeffrey P. Bezos said in a statement: "We are delighted to establish a new headquarters in New York City and Northern Virginia." These two locations will continue to be world-class talents that can be invented for our customers. It will attract. The team has done a great job in selecting this site, and we look forward to becoming a larger part of this community. "

The company also announced that Nashville has selected 5,000 jobs as part of its new Center of Excellence for its operations, transportation, supply chain and other similar operations.

If you choose Crystal City in Arlington County, Arlington County, Northern Virginia has earned a reputation as a magnet for business and will potentially transform the Washington area into an Eastern outpost in Silicon Valley for the next decade.

Your choice is marked with a price tag and the details are public. Virginia Governor Ralph Northam (D) and leaders in Arlington County agreed to provide a total of $ 573 million in Amazon direct grants based on a company that generates 25,000 jobs with an average wage of $ 150,000. The state and county will invest a total of $ 223 million to improve transportation, which will benefit the Amazon and other communities.

This photo, taken on November 7, 2018, shows the coast of Long Island City along the East River in the Queens Borough of New York. Amazon decided to separate its new headquarters between New York City and Crystal City, Virginia. (Photo by Don EMMERT / AFP / Getty Images)

The money, approved by the Virginia General Assembly, also includes improved traffic to nearby Metro stations and Reagan National Airport, and construction of pedestrian-only bridges connected to the new hub of the road. National Landing includes parts of Pentagon City and Crystal City in Arlington and Potomac Yard in Alexandria.

Virginia Tech plans to build a $ 1 billion graduate campus in Alexandria and focuses on innovation as part of the Provincial Higher Education package.

Northam said Virginia's technology talent and stable business environment are key to landing. He officially announced the deal at Crystal City's warehouse on a site that would ultimately own an Amazon property, and he told the following week's government, industry and business leaders: Technology Innovation Innovation. "

Covering the reading that Northam addressed, "Virginia was a book for Amazon lovers."

New York leaders have offered $ 1.85 billion more to Amazon, many of which are related to company job growth and salaries.

This decision gives Northam and its regional leaders the largest economic development award in a generation. Capital investment is expected to reach billions of dollars, but it can already pressure steep housing prices, road congestion and fragmentation between the rich and the poor. – Become a resident.

Northam said in a statement that it expects Amazon to invest $ 2.5 billion in Commonwealth and generate $ 3.2 billion in revenues.

According to a 25-page agreement between the company and the state, Amazon is expected to employ 400 people in 2019 and 1,180 next year. It is expected to create at least 25,000 jobs by 2030 and create a total of 37,850 jobs by 2034.

"This is a big victory in Virginia, and we plan to proudly acknowledge the tremendous assets that Commonwealth has to offer and deepen its roots."

Mayor Bill D Blasio and Governor Andrew M. Cuomo (D) joked that they would rename it to "Amazon Cuomo" if necessary to land the project.

Other final suitors include the district, Montgomery County, and 16 other jurisdictions, and Amazon has been considering it since the list began to narrow down in January. Muriel E. Bowser (D) Mayor and Larry Hogan (R) Governor of Maryland all applauded the announcement.

Both do not have to give up incentives to the company, but experts say they both need to see economic gains as a result. Bowser urged local leaders to set specific housing goals. Economists said that as the Amazon grows, economic deterioration will become even more severe.

"Arlington's Amazon is the victory of D.C.," Bowser said in a statement. "We will continue to prepare residents with the skills and knowledge needed for future jobs, including the Amazon."

Hogan said he expects other companies to move closer to the Amazon. "Overall, we will not only get 25,000 enterprise-level jobs, but we will get a lot of businesses that are part of the Amazon's supply chain," Hogan said.

Steve Case, co-founder of AOL, has worked with technology entrepreneurs in small and medium-sized cities to make a statement that he should not lose faith despite the choice of two faithful people on the East Coast.

"The best economic strategy is not to entice an existing company to open an office or factory, but to create a new company that can be the future of Amazon," he said. But a long-time resident in northern Virginia won the same breath. "Amazon's announcement is a victory not just for Virginia but for all D.C."

Opponents of this movement began shortly after the announcement, after the inequalities were resolved and organizations that opposed corporate subsidies began to gather supporters in New York and Virginia as transaction details began to appear.

"We are making phone calls and promotions all over Queens residents all day," said Alexandria O Casio-Cortez (D-N.Y.), Who will take office in January, the response of the community.

Many people were concerned about their living expenses and asked why the world's richest man, Bezos, needed a public fund.

Senator Michael Jiana Nasser and Senator Jimmy Van Bramer are particularly "not worth signing a $ 3 billion check to the Amazon," especially when considering the city's shattered subway, congested schools, and inadequate medical services. This happened.

"We are witnessing a noisy game where Amazon offers an unprecedented amount of taxes to one of the wealthiest companies on earth to promise jobs that account for less than 3% of the city's most commonly created jobs. Year period.

However, Cuomo said the benefits would dampen subsidies.

"The incentive-to-revenue ratio is 9 to 1. This is the highest rate of economic incentive program offered by the state, which contrasts with the proceeds from state tax credits, which is $ 1.15 per dollar invested," Cuomo said. He said.

Similar concerns have been announced in Virginia.

"Thousands of new high-income jobs can benefit our community, but we will have to know the cost," said Anna Scholl, senior director of the Progress Virginia advocacy group. "Tens of thousands of new workers and their families will be burdened with community resources for affordable housing, public transport and traffic, and quality local schools, and it is right for the Amazon to pay their fair share."

Jay Carney, Amazon's Senior Vice President of Corporate Affairs Worldwide, decided that the company carefully considered all locations and reviewed 100 metrics, but ultimately including options to divide the project based on how best to select the company "He said. The talent you need.

"We realized, of course, that the two metropolitan areas were fantastic, and each region has become a talented and livable place," he said in a telephone interview.

Carney said he would apply some of the lessons learned from Amazon's growth in Seattle to new locations. He said he was "very involved" in the Bezos course and attended all the leadership meetings discussed.

The decision to split the project without opening a second headquarters on par with the Seattle campus upset some people who say that some companies have stepped up competition to change mid-city rules. Some people said the company does not seem to be considering sites only in more affluent communities.

"The difference here is that we are planning ahead with these cities, and the Amazon started out in the garage, and no one even said that Jeff would be an Amazon or would employ tens of thousands of employees in Seattle alone."

Amazon launched the fall 2017 project and named it HQ2 and announced search criteria for the "second headquarters" with an investment of 50,000 jobs and $ 5 billion.

When picking Crystal City, Amazon chose a site close to the suburbs, about half a mile from the National Airport, across the Potomac River near Washington. Old and inexperienced buildings now fill the openings of some office buildings.

The selection represents a victory for the growth strategies of Arlington and Alexandria to facilitate development along the public transportation route. The site is close to the Crystal City Metro Station on the Blue and Yellow line and Potomac Yard Station, which is scheduled to open in 2021.

Residents in the nearby Del Ray region in Alexandria, however, worried that the arrival of the Amazon earlier this year would exacerbate slow-day-to-day rush hour backups and reduce the quality of life in single-family homes.

The decision has raised the resurgence of Crystal City, which has lost thousands of jobs since the Department of Defense and the defense industry departed from 2005 at the Defense and Disarmament Commission (BRAC).

One advantage is that assets are all monitored by JBG Smith, a well-capitalized company. The $ 4.4 billion company is the largest real estate owner and the most active developer in the region, and Crystal City and Potomac Yard own the majority of their assets to accommodate their entire project.

Amazon's choices ignite what North Virginia stands as a fascinating place for corporate headquarters. Over the last 15 years, the Volkswagen Group has enticed Arlington with US Herndon, Northrop Grumman with Falls Church, Hilton Worldwide with Tysons, and Nestle with US headquarters.

Northam said in March that the state plan was centered around workforce development, inclusiveness and transport, along with quality of life.

Although 238 districts originally submitted proposals to Amazon, many experts thought they liked the Washington area from the start, because they were personally involved in the area. Especially last year, the $ 23 million condominium purchased from Kalorama City and his stake was The Post.

Others wanted Amazon executives to get closer to Washington because they feared that regulators might pursue antitrust laws against the company or because the government became an important Amazon customer.

Virginia also has the political advantage of being a purple country, making it easier for the company to get support from both parties.

Amazon has previously announced that it will headquartered the cloud computing division of Amazon Web Services in Herndon, near some data centers.

The Washington area also naturally meets the many criteria Amazon demands, including those with a wealth of Amazon, people with a lot of talent, a powerful public transportation system, and easy airport access.

Amazon began its search in September 2017, making its decision by the end of 2018 and occupying an initial 500,000 square foot building in 2019.

The company said its Seattle headquarters spent more than $ 1.40 per dollar spent on the company by investing $ 38 billion more than investing in its corporate buildings in the local economy.

Seattle officials have not contested this figure, but are racing to catch up with the company's tremendous growth and meet the requirements for public transportation, schools, road networks, parks and public facilities. The company now has more than 45,000 employees, more than 40 buildings and 10 million square feet of office space.

Compared to other large conglomerates, Amazon employees are less likely to commute by car. According to a Seattle employee survey, about 55% of people walk, ride a bicycle, or use public transportation. The company is building a dedicated cycle track to buy public transportation cards for employees and to separate cars and bikes from Seattle buildings.

Amazon's growth is also likely to put new burdens on homes. Since the arrival of the Amazon, Seattle has become one of the most expensive places to live in the United States, and low-income residents have moved to distant suburbs. King County, in and around the city, declared an emergency in 2015 as a homeless.

Even without Amazon, the Washington Metropolitan Council of Governors estimated that by 2025, 235,000 homes would have to be added to the region in anticipation of the expected job growth. The arrival of the Amazon was able to push the target to over 267,000, according to a recent analysis by the Urban Institute. It is up to speed to add about 170,000 new units by 2026.

Bezos and the company have announced some announcements that Amazon's image can soften when opening a second hub since we started searching our headquarters.

Bezos announced in September that he would donate $ 2 billion in his own money to support groups fighting homeless in the United States and create a preschool network in a poor community. In October, when critics of Senator Bernie Sanders (I-Vt.) Were criticized, Amazon announced that it would raise the minimum wage for all its employees to $ 15 per hour.

Minimum wage decisions are unlikely to have a significant impact on companies employed in Northern Virginia. In Northern Virginia, the Amazon factory will employ more than $ 100,000 in white-collar workers.

Washington regional jurisdiction, partially enforced by federal budget cuts before Amazon announced its search, was already diversifying its workforce without resorting to federal spending. Despite budget cuts and congressional downturn, the region generated 55,000 jobs annually from 2015 to 2017. However, job growth was slower than average among major metropolises.

Patricia Sullivan, Gregory S. Schneider, Michael Laris and Fenit Nirappil contributed to this report.

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