Amazon confirms New York City and Northern Virginia for new $2.5 billion corporate headqua...

Posted:
in General Discussion edited November 2018
Amazon has confirmed it will be setting up new corporate headquarters for its empire in New York City and Northern Virginia, putting to an end a year-long process where the major online retailer vetted proposals to move to 238 candidate locations.

Amazon founder and CEO Jeff Bezos
Amazon founder and CEO Jeff Bezos


The announcement will see Amazon invest $5 billion to create two headquarters in the two locations, which is set to create more than 50,000 jobs, with more than 25,000 employees each in New York City and Arlington, North Virginia. Confirming earlier reports on the selections, the two new headquarters will join the existing headquarters in Seattle, with the retailer using all three for its corporate work.

Crystal City is the more conventional name for what Amazon is calling "National Landing." Virginia as a whole has promised $550 million in direct assistance to Amazon over 15 years, with $23 million of that coming from Arlington itself.

The influx of people will cause additional strain on an already overburdened system. Virginia has also promised $195 million in transportation and infrastructure improvements to the area as well.

AppleInsider has learned that the site selected by Amazon is the same one that Virginia Governor Ralph Northam proposed to Apple, in the company's search for a second headquarters. At least two other areas in the DC metropolitan area remain, however.

New York is assisting Amazon to the tune of $1.525 billion -- assuming the company creates 25,000 jobs. The inducement package offered to Amazon includes a refundable tax credit through New York's Excelsior Program of up to $1.2 billion over the next 10 years, based on what the company is expected to pay employees.

Both the Virginia and New York locations are expected to see $2.5 billion in Amazon investment.

"We are excited to build new headquarters in New York City and Northern Virginia," said Amazon CEO and founder Jeff Bezos. "These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come. The team did a great job selecting these sites, and we look forward to becoming an even bigger part of these communities."

At the same time as announcing the two selected HQ locations, the retailer has also selected Nashville to become a new Center of Excellence for its Operations business, which handles the supply chain, customer fulfillment, and transportation. The new center will create more than 5,000 jobs from an investment of over $230 million, with the facility consisting of 1 million square feet of office space, and will create an estimated incremental tax revenue of more than $1 billion over the next decade.

In exchange for producing the center, Amazon will receive performance-based direct incentives worth up to $102 million, if it successfully creates 5,000 jobs with an average wage of over $150,000 in Nashville.

The search for a new headquarters started in September 2017, and saw 238 initial candidates applying to host the facility. The list for the potential HQ2 was narrowed down to 20 cities in January, including 19 cities in the United States and one in Canada.

Amazon made the decision to split the investment between two locations for its headquarters, due to the ability to "recruit more top talent," the company claims. New York City and Northern Virginia have strong local and regional talent, "particularly in software development and related fields," which helped Apple make the decision alongside the financial benefits.
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Comments

  • Reply 1 of 46
    wood1208wood1208 Posts: 1,877member
    236 candidate locations government must feel fool after kissing Amazon's b*** for over a year.
    AppleExposed
  • Reply 2 of 46
    5,000 jobs with an average salary of $150k in Nashville?  Wow. 
    StrangeDays
  • Reply 3 of 46
    fallenjtfallenjt Posts: 3,976member
    wood1208 said:
    236 candidate locations government must feel fool after kissing Amazon's b*** for over a year.
    Lol...Amazon doesn’t like conservative states. Texas can cry a river!
  • Reply 4 of 46
    dewmedewme Posts: 1,993member
    Good for them ... I guess. Whew, it's not like the traffic, congestion, and cost of living isn't already brutal in both of those areas. Can it even get worse? I guess we will find out. Perhaps Amazon employees can same-day deliver themselves back and forth between home and office. 
    Rayz2016randominternetpersonronnh2pgilly33philboogie
  • Reply 5 of 46
    fallenjt said:
    wood1208 said:
    236 candidate locations government must feel fool after kissing Amazon's b*** for over a year.
    Lol...Amazon doesn’t like conservative states. Texas can cry a river!
    Do you have a comment about each of the other 200+ locations?
    SpamSandwichstompy
  • Reply 6 of 46
    Mike WuertheleMike Wuerthele Posts: 4,346administrator
    dewme said:
    Good for them ... I guess. Whew, it's not like the traffic, congestion, and cost of living isn't already brutal in both of those areas. Can it even get worse? I guess we will find out. Perhaps Amazon employees can same-day deliver themselves back and forth between home and office. 
    Can confirm that it is. Those millions that Virginia has promised won't even cover what we need now, much less when 25K Amazon folk move in.
    ronnh2p
  • Reply 7 of 46
    FolioFolio Posts: 504member
    Yeah traffic is a beast. But at least Crystal City “National Landing” is served by subway lines getting upgraded. And the office space was largely vacated by defense contractors. NYC may be worse. The 7 train at rush hour one hellish commute.
  • Reply 8 of 46
    They’re completely nuts to pick New York for one of these locations.

    Also, what are the tax implications of having multiple “headquarters” anyway? I presume Amazon remains a Seattle-based corporation and these are just satellite offices.
    StrangeDays
  • Reply 9 of 46
    dewme said:
    Perhaps Amazon employees can same-day deliver themselves back and forth between home and office. 
    Need more Musk tunnels!
  • Reply 10 of 46
    They’re completely nuts to pick New York for one of these locations.

    Also, what are the tax implications of having multiple “headquarters” anyway? I presume Amazon remains a Seattle-based corporation and these are just satellite offices.
    Amazon is a Delaware corporation...like most others.
    SpamSandwichrandominternetpersonh2p
  • Reply 11 of 46
    crofford said:
    They’re completely nuts to pick New York for one of these locations.

    Also, what are the tax implications of having multiple “headquarters” anyway? I presume Amazon remains a Seattle-based corporation and these are just satellite offices.
    Amazon is a Delaware corporation...like most others.
    Good clarification.
  • Reply 12 of 46
    The pick of "Long Island City" (Queens) instead of Manhattan or Brooklyn is a bit weird… and possibly a little savvy (I'm not sure).

    Manhattan would have been an instant crisis… if they had picked Brooklyn, whoomp, that's the end of Brooklyn. Instead they picked Queens, which… it's sort of a tacky area. Nobody wants to be there except folks who grew up there. But a ton of new high-rises just popped up in the past two years (I'm out there all the time as they're clustered around my gym). If it turned out that Bezos picked Queens years ago, and quietly leaked info to some property owners to get those high rises made, that would make all the sense. 

    There's not (quite) enough of them to absorb 25,000 new workers, but it will be close — and Queens can contain the rest too. I don't see a lot of spillover to Brooklyn or Manhattan, which means the additional hit on the subways won't be quite that bad. And the whole area is due for an upgrade in terms of quality-of-living anyway.

    So, I dunno… but the analysis reading "Amazon picks NYC" is missing this angle.
    edited November 2018
  • Reply 13 of 46
    FolioFolio Posts: 504member
    Savvy move, likely greatly motivated by AWS. No cities in the world more information intensive than DC with govt/defense/health and NYC whose financial markets dwarf others including London FTSE and Hong Kong
  • Reply 14 of 46
    assuming the company creates 25,000 jobs

    Don't you mean 25,000 Robots?

    After all, the pay peanuts and have stated that they want to replace almost all humans with robots so that there is more profit for the 'C' level execs.
  • Reply 15 of 46
    Attention Amazon Echo owners:

    https://www.nbcnews.com/news/amp/ncna935221?__twitter_impression=true

    You have volunteered to house a witness against you in your house (and it won’t be limited to murder cases, believe me). Wait til the IRS or Homeland Security or other Federal agencies start subpoenaing recorded information. Or lawyers in divorce proceedings...
    edited November 2018
  • Reply 16 of 46
    JFC_PAJFC_PA Posts: 295member
    assuming the company creates 25,000 jobs

    Don't you mean 25,000 Robots?

    After all, the pay peanuts and have stated that they want to replace almost all humans with robots so that there is more profit for the 'C' level execs.
    Lol. These aren’t distribution warehouses: these are tech headquarters for all the back room support stuff, their server business etc. 
  • Reply 17 of 46
    FolioFolio Posts: 504member
    Possibly because they compete for much of same top workforce talent. Nashville choice intrigues me, given its rise to music capital, another area where A & A compete in media offerings.
  • Reply 18 of 46
    Folio said:
    Possibly because they compete for much of same top workforce talent. Nashville choice intrigues me, given its rise to music capital, another area where A & A compete in media offerings.
    Agree about the entertainment angle in Nashville. Quite possible Amazon buys up venues for musical performance and recording rights.
  • Reply 19 of 46
    maestro64maestro64 Posts: 4,481member
    Folio said:
    Yeah traffic is a beast. But at least Crystal City “National Landing” is served by subway lines getting upgraded. And the office space was largely vacated by defense contractors. NYC may be worse. The 7 train at rush hour one hellish commute.
    I was thinking the exact same thing. Not sure why they would select one of the most congested areas in the country, this is as bad as picking the Silicon Valley or LA. They will be competing for the same talent pools.

    I wife goes into NYC for her work all the time, she mostly works from home so does not commute. She was telling me the trains in NYC have become more problematic in the last 10 yrs. People she works with are always late to work because a train is not running, delayed to stuck in a station for period of time.
  • Reply 20 of 46
    ronnronn Posts: 318member
    LIC, Queens is a horrible choice. Even though I'm sure many (most?) of the employees will look to Brooklyn, Manhattan and other areas of Queens to live. Housing stock is inadequate and cheesy, IMO. It's been growing and has multiple office towers built over the pass decade and a half. But the transportation network is sorely lacking. The 7 line and N/Q/R lines are already one of the most congested within the system. And Gov. Criminal, er, Cuomo giving $1.5B worth of incentives will benefit the real estate lobby that has settled him comfortably in the Governor's mansion. I hope there are some defined benefits tied to the giveaways. Probably not knowing Cuomo.
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