Saturday , August 20 2022

Amazon is selected by New York City, Washington DC. area for new offices



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SAN FRANCISCO / VASHINGTON: Amazon.com chose US financial and political capital cities for massive new offices on Tuesday, diverting itself from its home base in Seattle with plans to create more than 25,000 jobs in New York and the area outside Washington, DC

The world's largest online store plans to spend $ 5 billion for two new events in Long Island City and Arlington, Virginia, and expects to receive more than $ 2 billion of tax credits and incentive plans to sign up for more.

The award, which Amazon called HK2, attracted hundreds of proposals across North America during a one-year bidding war that won widespread publicity for the company. Amazon ended a frenzy by dividing the prey between the two most powerful east coast cities in the United States and a 5,000-seat resettlement center in Nashville, Tennessee, focusing on technology and managing retail operations.

Losers said they learned from the process, while the winners said it was expensive, but worth it.

"You either create jobs or lose your job," New York Governor Andrew Cuomo told a news conference on Tuesday.

With more than 610,000 workers worldwide, Amazon is already one of the largest employers in the United States and the third most valuable company in the world, behind Apple Inc. and Microsoft Corp.

Nevertheless, it faces fierce competition for the talents of Google Alphabet Inc. and other companies that are working to build new cloud technologies. These rivals routinely offer free food and percussion in sunny California, seen by many as a better attractive result than Amazon's relative savings in Seattle. Google also has an increasing impact in New York.

Already marketing his upcoming location in Queens Quarter in New York, Amazon talked to Long Island Citi's brewery, water parks and a simple transit approach. Renting is typically lower than in Midtown Manhattan, which is just across the eastern river. The former industrial zone also has a watch that counts the watches by the end of the first term of US President Donald Trump.

The choice of Arlington, Virginia, across from the Potomac Center in Washington, DC, could have Amazon's greater political influence in the US capital, where it has one of the largest lobbying shops in the city. Finding near the Pentagon can also help Amazon gain a cloud computing contract of US $ 10 billion from the US Department of Defense, said Michael Pachter, an analyst at Vedbush Securities.

Jeff Bezos, executive director of Amazon and the richest in the world, privately owns the Washington Post, which wrote critical articles about Trump. In turn, Bezos companies were a frequent target of the metro by the president. The newspaper maintains full editorial independence from its owner.

The choice of Amazon has largely circumvented the environment of the United States, where many cities are hoping for economic incentives and running for new jobs. The company already had large corporate workforces in major Washington and New York.

"My heart is broken today," said Dallas Mayor Mike Ravlings.

TAX RELIEFS

At the beginning of his search last year, Amazon said he was looking for a business environment. The company said it will receive from the state of New York State $ 1.525 billion stimulus, including an average of $ 48,000 for every job it creates.

It can also apply for other tax incentives, such as the Movement and Employment Aid Program in New York that offers tax reliefs worth $ 900 million over the course of 12 years. What benefits a company could get was unclear.

In Virginia, Amazon will receive $ 573 million stimulus, including an average of $ 22,000 for each job it creates.

These awards come with $ 1.6 billion in Amazon's subsidies across the United States since 2000, according to the data of the well-known Good Jobs First trustee.

Amazon says it has invested $ 160 billion in the country since 2010 and that the new offices will generate more than $ 14 billion in additional tax revenues for New York, Virginia and Tennessee over the next two decades.

Expects an average salary of more than US $ 150,000 for employees in each new office.

HOUSING CRISIS

Amazon's emphasis on new, highly paid jobs has become public, as it has faced criticism of low wages in its warehouses.

The company received media attention of more than $ 148 million in English language printing within two months of launching its search in September last year, according to media and analyst firm mediaKuant Inc.

Amazon received 238 proposals, and New York and Virginia won 18 other finalists from the list for January in Los Angeles and Chicago.

Nevers Jerseys published titles at the start of the competition by suggesting $ 7 billion in potential loans against state and city taxes if Amazon is located in Nevark and stuck to hiring commitments.

Others with less money for the offer had a more creative approach: the mayor of the Atlantic suburb of Stonecrest, Jason Lari, said he would create a new city from industrial land called Amazon and call Bezosom his mayor for life.

When assessing his possibilities, Amazon looked at the quality of schools, met with his superiors to discuss science education and mathematics. Amazon also wanted to drop helicopters for new locations, documents that it released on Tuesday.

The company already had to move on community issues in more than 45,000 people in Seattle's urban camps. The available crisis in the apartment building prompted the city council to adopt a tax on business parts in May, which Amazon helped to overcome votes in the city council.

Some critics have sought more transparency from cities and states in the bidding process, warning that the benefits of hosting large Amazon offices can not compensate incentives and other costs financed by the taxpayer.

"Our subways are growing, our children do not have school places, and too many of our neighbors do not have adequate health care," said New York senator Michael Gianaris and city council member Jimmy Van Bramer in a joint statement. "It is unknown that we will sign Amazon's costs of $ 3 billion in relation to these challenges."

Amazon shares closed 0.3 percent to $ 1631.17, giving the company a market value of nearly $ 800 billion.

(Reporting Jeffrey Dastin to San Francisco and David Shepardson in Washington DC; Additional Reports by Arjun Panchadar and Supantha Mukherjee in Bengaluru, Angela Moon, Hilari Russ and Laila Kearney in New York, Suzanna Gonzales and Karen Pierog in Chicago by Nick Zieminski Writing by Meredith Mazzilli and Bill Rigby)

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