Its official: Newark wont be home to Amazons HQ2

It\s official: Newark won\t be home to Amazon\s HQ2
Amazon HQ2 Coming to Northern Virginia; Economic Impact Will Be Felt Throughout the Washington Region
SEATTLE — [Its official: Amazon said on Tuesday that it would open new offices in New York and Virginia. Read our updated coverage of the news here.]

After conducting a yearlong search for a second home, Amazon has finalized plans to have about 50,000 employees in two locations, according to a person familiar with the decision-making process.

Amazon is looking for a location where theyve got a high-quality, competitive workforce, where families can come, they can live in great neighborhoods, and they do want to have a good relationship with the government, Brown said, so I think the tax incentives and subsidies that are offered are often more of a reflection of a local governments willingness to be a partner with the business.

HQ2 win cheers Virginia politicians and homeowners, even as residents mock the new name

The company has decided to move to the Long Island City neighborhood of Queens, and to the Crystal City area of Arlington, Va., a Washington suburb, the person said. Amazon, which plans to officially announce the decision on Tuesday, already has more employees in those two areas than anywhere else outside of Seattle, its home base, and the Bay Area.

Virginia committed to paying Amazon more than $500 million over 12 years if the company delivers on its promise of 25,000 new jobs with an average salary of $150,000 or more. Amazon could get additional money based on the revenue produced by hotel taxes in the area. The state will also invest in workforce development programs and in improving the infrastructure around Amazons new offices.

The need to hire tens of thousands of high-tech workers has been the driving force behind the search, leading many to expect it to land in a major East Coast metropolitan area. Many experts had pointed to Crystal City as a front-runner, because of its strong public transit, educated work force and proximity to Washington.

Amazons 14-month search for a home for its second headquarters attracted bids from more than 200 cities around the country, but the company surprised many this week by choosing two locations. Illinois had reportedly offered $2.25 billion in tax incentives to woo HQ2 to the Chicago area, and the city was one of the 20 finalists announced earlier this year.

[Crystal Citys upsides: good transit, diverse residents, a friendly business climate and a single developer with a big chunk of land.]

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About 1,800 people in advertising, fashion and publishing already work for Amazon in New York, and roughly 2,500 corporate and technical employees work in Northern Virginia and Washington.

Amazon narrowed the list to 20 cities in January, and in recent weeks, smaller locations appeared to fall out of the running. For example, although Denver made the initial cut, Gov. John Hickenlooper of Colorado said last month, Wouldnt they rather have their second big hub on the East Coast?

Amazon is also committing to bringing features like a 10,000 square foot workforce development and training space, roughly 150,000 square feet of public open space and a waterfront esplanade, community and artists work areas, either an elementary or middle school, and light manufacturing space in its development plan.

Amazon announced plans for a second headquarters in September 2017, saying that the company was growing faster than it could hire in its hometown, Seattle. The company said it would invest more than $5 billion over almost two decades in a second headquarters, hiring as many as 50,000 full-time employees that would earn more than $100,000 a year on average.

The lots are a mix of private and city-owned properties that were all slated for major rezonings and development. The private lots are owned by Plaxall, a large plastics manufacturing company that put out plans last year for an eight-building, 5,000 unit project around the basin.

HQ2 would be the full equal to our current campus in Seattle, the company said. Picking multiple sites allows it to tap into two pools of talented labor and perhaps avoid being blamed for all of the housing and traffic woes of dominating a single area. It could also give the company greater leverage in negotiating tax incentives, experts said.

Even if the most obvious reasons appear to be about attracting more tech workers, the P.R. and government incentives benefits could help, too, said Jed Kolko, chief economist at Indeed, an online jobs site.

The HQ2 search sent states and cities into a frenzied bidding war. Some hired McKinsey & Company and other outside consultants to help them with their bids, investing heavily in courting Amazon and its promise of 50,000 jobs. Even half of that would amount to one of the largest corporate location deals on record, according to Greg LeRoy, executive director of Good Jobs First, which tracks corporate subsidies. These are very big numbers, he said.

As Amazons search dragged on, residents in many of the 20 finalist cities worried about the impact such a massive project could have on housing and traffic, as well as what potential tax incentives could cost the community. The decision to split HQ2 into two sites could alleviate some of that resistance.

Seattle has been one of the fastest growing cities in the country, in part because of Amazons growth. The company has about 45,000 employees in the city, and the company said it needed to hire more employees than the city could attract or absorb.

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