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Amazon Pulls Out of Planned New York City Headquarters
Amazon on Thursday canceled its plans to build an expansive corporate campus in New York City after facing an unexpectedly fierce backlash from lawmakers, progressive activists and union leaders, who contended that a tech giant did not deserve nearly $3 billion in government incentives.
The decision was an abrupt turnabout by Amazon after a much-publicized search for a second headquarters, which had ended with its announcement in November that it would open two new sites — one in Queens, with more than 25,000 jobs, and another in Virginia.
Amazon's retreat was a blow to Gov. Andrew M. Cuomo and Mayor Bill de Blasio, damaging their effort to further diversify the city's economy by making it an inviting location for the technology industry.
The agreement to lure Amazon to Long Island City, Queens, had stirred intense debate in New York about the use of public subsidies to entice wealthy companies, the rising cost of living in gentrifying neighborhoods, and the city's very identity.
Also at the Long Island City Post, CNBC, CNN, and the Washington Post.
Previously: Amazon Said to be Close to Picking Crystal City, Virginia for Second Headquarters
Amazon Reportedly Picks New York, Northern Virginia for HQ2
(Score: 4, Insightful) by black6host on Friday February 15 2019, @02:38AM (9 children)
I don't mind if companies do business. That's what companies do. I do mind paying them to come and do business. How many billions has Amazon made? And we should pay them to come and do business where we live? No, I don't think so. Same goes for the NFL and their stadiums.
Here's why: The people that benefit don't pay enough into the system to equal it out. If my taxes go up and I stand to make an equal amount another way, which is the argument that these *businesses* make when arguing for tax breaks, etc., then fine. But, that's not how it goes. I may even it out but that doesn't mean the guy next to me will. C'mon, these people aren't in it to make Queens, or Crystal City, a better place. They're in it to make money. And, if they do, guess who's paying for it. I get so tired of this crap...
(Score: 3, Interesting) by RandomFactor on Friday February 15 2019, @03:22AM (5 children)
Were the full details of the incentives ever made available?
If this was just various tax breaks and credits then this is slightly different. Not taxing them directly doesn't actively reduce funds (ignoring some minor stuff), and other revenue streams to the city do increase. Also presumably eventually as those incentives go away revenues ramp up further down the road. Potentially a solid long term move.
On the other hand if this included things like "Here's a payment from city coffers of a billion dollars in taxpayer cash to help you get on your feet" yeah, I can sympathize with the righteous indignation.
Without those details you are left with which politician to trust. Never a good decision making position to be in :-\
В «Правде» нет известий, в «Известиях» нет правды
(Score: 2) by black6host on Friday February 15 2019, @03:46AM (3 children)
No, not a good decision making position to be in. Let me ask you a question, and none of this stands up to scrutiny as far as my argument goes, do you think Amazon wanted to go into Queens as an altruistic gesture? There's always a payback and Amazon is no fool. Even if the public documents were to survive scrutiny that does not mean there were not benefits that most are not aware of.
Oh man, I'm getting out there :)
(Score: 2) by RandomFactor on Friday February 15 2019, @04:33AM (2 children)
Companies of that size making decisions like that are going to have a number of people involved. This reduces shenanigans, but doesn't eliminate them.
The stated reason was the availability of talent in New York.
Fair enough. There probably is a really big talent pool available in NYC relative to other smaller cities.
Queens in particular? No idea the thought process there. Altruism is certainly possible, but there are cheaper ways to be altruistic (and better for the company if it isn't a good HQ location) that can be pursued. Certainly Queens doesn't sound like the best option without other factors like goodwill in play.
I would lean toward a combination of factors, with public perception being a significant one.
Then at the last city council meeting not a single councilman defended Amazon or the deal to get them there. So that seems pretty reasonable to tip the scales away from that location.
В «Правде» нет известий, в «Известиях» нет правды
(Score: 0) by Anonymous Coward on Friday February 15 2019, @07:00AM
Probably having a headquarters inside a very large city with a wealthier-than-average population would be a good business decision if the cost of being there wasn't too high. Not having the 3 billion made costs higher than benefit.
(Score: 3, Informative) by Phoenix666 on Friday February 15 2019, @03:46PM
Long Island City, Queens, is a rapidly gentrifying neighborhood adjacent to Manhattan. It's full of hipsters and IT professionals who are starting families and who would rather not slog across the Queens Borough Bridge or through the Midtown Tunnel to Midtown. Also, it's close to subway stops that connect to Williamsburg, Brooklyn, where other groups of IT people live, and close to stops on the Long Island Railroad so upper managers who live in the suburbs can get to work easily. Midtown bankers that Amazon likes to work with could easily cab across the bridge or tunnel to visit.
So in terms of access to appropriate labor pools and transportation, the location makes sense.
Cornell is building a technology campus on Roosevelt Island, which lies in the middle of the East River between Manhattan and Long Island City, so that would have been a feeder for Amazon also.
I'm honestly surprised the whole thing fell through. Amazon is exactly the kind of employer NYC IT people like to work for. Also, in NYC developers get their way 99.99999% of the time.
Washington DC delenda est.
(Score: 2) by Bot on Saturday February 16 2019, @01:42AM
Those tech giants have enough cash to buy out entire states' governments. Therefore the deals they reach with single states should be held as fraud attempt and the difference between what they pay, and what auntie and her shop pay comparatively, should become additional tariffs to sell their goods. When firms create poverty, the state pays for it, directly and indirectly (poverty => criminal workforce). This should HAVE BEEN true for foreign nations that treat workers like sh!t too, and now those places are so powerful they are buying out Africa and too powerful to be taxed out to justice...
Frankly I'd split them up, if that were possible (I think that the banking system makes splits irrelevant, welp)
Account abandoned.
(Score: 3, Informative) by ElizabethGreene on Friday February 15 2019, @06:57AM (2 children)
20,000 People making $150,000 per year is 3 Billion dollars in new annual personal income in the state. If you capture 6.6% of that revenue as taxation then you've broken even on a billion dollar incentive plan in 5 years, or 10 years at 3.3%. The state income tax rate is, iirc, >3%. Based on these WAGs, the back of the envelope numbers feel like a net win even if NYS got $0 from Amazon directly.
@Amazon: Come take a drive around Middle Tennessee. I'm in Seattle this week and the trees and rolling hills feel very much like home. Please bring some decent coffee when you come. :)
(Score: 2) by black6host on Friday February 15 2019, @08:20PM
That's assuming 20,000 make 150K each year and that they wouldn't already be employed in some fashion. Factor in that taxes must also pay for schools, infrastructure, etc. etc and I'm not so sure you've got the tax revenue estimation down. I do note your use of italics, however.
I'm also curious as to how you arrived at the 150K...
(Score: 2) by Bot on Saturday February 16 2019, @01:44AM
>then you've broken even
Which means you've kept feeding off all the others for taxes. Is your name Bezos? no? QED.
Account abandoned.