By Max Bibeau | USA
After months of city bidding, Amazon has finally selected its HQ2 locations, as reported by the New York Times. The new headquarters will appear in New York City and Crystal City, bringing with it an estimated $5 billion in investment and 50,000 new jobs.
These selections come as a surprise to many, as previous analytics, such as Bank of America’s, found cities like Washington DC, Boston, and Atlanta to be much better contenders for the new HQ.
The decision comes after months of intense bidding from cities across the country, including tax cuts and subsidies. It’s no secret that New York Governor Andrew Cuomo was extremely interested in attracting the HQ to New York, even jokingly offering to change his name to Amazon Cuomo “if that’s what it takes.”
New York provides $1 billion+: “Amazon will receive performance-based direct incentives of $1.525 billion based on the company creating 25,000 jobs in Long Island City, per release”
— Jonathan O’Connell (@OConnellPostbiz) November 13, 2018
While Cuomo will get to keep his birth name, the city is offering upwards of 1.5 billion in direct subsidies and tax cuts in exchange for Amazon’s HQ.
Crystal City’s incentives, however, are much less publicized, being drafted and proposed behind closed doors. While we can imagine the immense bargaining that must have taken place, it is not currently known what Virginia offered Amazon, outside of a booming location with a highly educated workforce.
It’s unsure when exactly construction on the new HQs will begin, but after the selection of the cities, it is likely Amazon will waste no time in beginning the process. The new HQs should be a huge boon for both New York and Virginia, providing a huge economic stimulus to both regions.
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