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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, Interesting) by NotSanguine on Friday February 15 2019, @08:41AM
Not because it was a bad deal for Amazon *or* NYC.
The estimate was that over the term of the tax breaks (totaling $3 Billion), the deal would have added 25,000 jobs and $27 Billion in tax revenue. That would have been very positive for NY.
The reason Amazon backed off was, apparently, the opposition to the deal from City Council members and a state senator from Queens. This, despite the fact that just about everyone else, including local residents (many of whom are poor folks who need more business and jobs in their neighborhood), were all over it like white on rice.
These pols lambasted the deal in the media and repeatedly beat up on Amazon people in hastily called city council hearings. If I wanted to open a business somewhere and parts of the local government were beating up on me, I'd seriously consider taking my business elsewhere too.
These pols railed against the deal, not because it was a bad deal, and not because their constituents were against it. They pushed until the deal was dead because they wanted to hurt NYC's mayor and NY's governor because they felt they hadn't had sufficient input during the negotiations.
It was all political posturing and a chance for these guys to raise their profiles and punish their political rivals.
More's the pity.
All that said, the idea that municipalities should pony up subsidies/tax breaks to entice businesses to move to their city is problematic at best and corruption at worst.
No, no, you're not thinking; you're just being logical. --Niels Bohr