Amazon Abandons Plans for Second Headquarters in NY

Posted February 15, 2019

CCN previously reported that Ocasio-Cortez, along with a variety of other local politicians and interest groups, had spearheaded resistance to Amazon's plan to place half of its second corporate headquarters in Long Island City.

The pushback against the Amazon deal was helped this month when New York State Senator Michael Gianaris of Queens, who is a vocal critic of HQ2, was recommended to serve on the Public Authorities Control Board.

"It's unfortunate that we have lost out on an opportunity to create tens of thousands of jobs for city residents and generate billions of dollars in tax revenue to fund vital services including infrastructure improvements for transportation, schools, and open space".

"After much thought and deliberation, we've decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens", Amazon wrote in a blog post. The Lehigh Valley, where Amazon employs more than 3,000 across three fulfillment facilities, also submitted a proposal for the company's headquarters, but the region did not make the top 20.

New York City Mayor Bill de Blasio argued that the deal would yield a staggering 9:1 return on investment.

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"Amazon showed its true colors today and every American should be outraged", the union said in the statement.

Amazon is looking for a new dance partner for its new headquarters after pulling out of plans to develop a site in New York City. The company will not reopen the HQ2 search at this time and will move forward with the planned headquarters in northern Virginia and Nashville, Tennessee.

A rendering of what would have been Amazon's future office tower in Long Island City.

"Today's behavior by Amazon shows why they would have been a bad partner for NY in any event", he said in a statement. "The commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term". It instead focuses on how Amazon would have looked forward to establishing a presence in the state. A new facility is being built for the hub, and Amazon has pledged hundreds of new jobs to support it.

Meanwhile, Greg LeRoy, executive director of Good Jobs First, a group that tracks corporate subsidies around the country, said that the New York HQ2 deal was negotiated too secretively between the company and Gov. Cuomo, and that public pressure from community groups pushed lawmakers to oppose the project.

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Amazon announced its plans for a new secondary campus late past year, but said political reaction caused it to reconsider.

Showing just how important Amazon has become on the political stage, representatives local and national, from all sides of the aisle commented on the decision.

Pawar described his ordinances to the Sun-Times as precautions in case Amazon withdraws from NY, as the online retailer's "HQ2" site in Long Island City, Queens, faces a mounting political backlash.

While New York's politicians, longtime residents and real estate investors digest Amazon's stunning reversal, officials in other states may see opportunity knocking.

Furthermore, the statement read, "there are now over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams". And while both Governor Cuomo and Mayor de Blasio came out in strong support of the deal, others such as Alexandra Ocasio-Cortez came out against it. We hope to have future chances to collaborate as we continue to build our presence in NY over time.

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