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