This article first posted at 10 AM on Thursday, February 14th. Shortly after it’s release, Amazon announced its decision to officially pull HQ2 from Long Island City.
How did it happen?
Jeff Bezos’ multi-billion dollar company is moving to New York City, and the locals have mixed feelings. Since 1994, Seattle, WA has been Amazon’s one and only home, but in 2017, the company announced its plan to open a second headquarters. During the ensuing 14 months, cities across the country marketed themselves to Amazon in the hopes of being chosen for the role. Finally, Amazon announced the location of their new HQ2 late last year: New York City.
Originally, NYC wasn’t even on the top of Amazon’s list of possible HQ2 locations. However Mayor Bill de Blasio and Governor Andrew Cuomo pushed hard for Amazon to build in the Big Apple. Along with strong financial incentives, they offered the company its choice of four potential building sites — Midtown West, the Financial District, Long Island City, and the “Brooklyn Tech Triangle.” Cuomo joked that he would change his name to “Amazon Cuomo” if it meant the company would choose NYC.
Over the years, Governor Cuomo has made a name for himself by pushing for private sector job growth. When talking about the partnership, Cuomo has repeatedly noted the $3 billion Amazon is projected to bring to the city. For Mayor de Blasio, Amazon fits into his large-scale goal of making NYC a place of distributed wealth between boroughs. The presence of HQ2 in LIC, will bring some of the wealth that has long congregated in Manhattan to Queens.
However, not all city dwellers are convinced that Amazon’s presence will have a positive influence on the Big Apple. A recent survey conducted on the WNBA-NYC’s Facebook page, showed fairly split opinions. Here, we’ll examine the impact Amazon might have on New York City.
How is Amazon benefiting?
Amazon is receiving four million square miles of prime real estate near Anable Basin on the East River. Instead of wading through the city’s Universal Land Use Review Procedure, the state will override local regulations on the lot. If all job goals are met, Amazon will receive $897 million from NYC’s Relocation and Employment Assistance Program, $386 million from the Industrial Commercial Abatement Program, $505 million in capital grants, and $1.2 billion in Excelsior fully refundable tax credits.
How is New York City benefiting?
The big question on everyone’s mind — what are New Yorkers getting out of this deal? The state claims that Amazon will generate $27.5 billion in state and city revenue over the next 25 years. On their blog, Amazon explains they plan to invest roughly $2.5 billion and bring 25,000 jobs to the area. The community immediately surrounding Long Island City will receive funding on the Payment In Lieu of Tax (PILOT) program. This program would allocate a percentage of Amazon’s property tax to developing surrounding resources.
Amazon agreed to donate a large space for use by a tech startup, and local artists and businesses. The tech giant also agreed to reserve part of their property for a new primary or intermediate school. WNBA members believe this is an important move for Amazon to make, if they hope to be welcomed by locals. NYC Chapter President, Laurel Stokes, suggested that Amazon “Partner with neighborhoods to improve transportation, housing and other already strained resources, and hire locally as much as possible so that we all benefit.” Chapter member Sheila Lewis encourages Amazon to be charitable – build affordable housing, help fix local infrastructure, and transportation.
What are the concerns with Amazon building in NYC?
When Amazon announced NYC as its next destination, the backlash was swift. While Governor Cuomo and Mayor de Blasio foresee revenue and jobs, locals are concerned how Amazon’s presence will alter the shape of their communities. Look at it this way: Amazon is moving in next to one of the state’s largest housing projects in which 60 percent of its residents rely on food stamps.
Local concern, that already high New York apartment prices will increase, is valid. Lewis and Stokes both see the increase in housing costs as an inevitability that may ripple through all the boroughs. Furthermore, New Yorkers have already witnessed the gentrification of the five boroughs increase the city’s general cost of living. Amazon HQ2, which touts an average new employee salary of $150,000 will only worsen those issues unless the city makes a dedicated effort to hire locally. Finally, as brick-and-mortar shops already struggle to make ends meet, Amazon’s arrival may make it even harder for them to compete. We can assume the rapid changes Amazon will bring will pose a great challenge to the city.
Your Thoughts?
Amidst these rising concerns, rumors have spread that Amazon may pull HQ2 out of NYC. What are your thoughts? Do you think the new headquarters will invigorate the community in Queens or hurt it? Now is the time to make your opinion known!
Audrey Webster is a media editorial assistant at Macmillan Learning, and the WNBA-NYC Social Media Manager. When she isn’t brainstorming for the next bookish social post, she can be found wandering the Met, catching a movie at the Angelika theater, exploring Prospect Park in Brooklyn, curled up somewhere with a book or sitting at her laptop writing. She loves the outdoors, almond butter, thunderstorms and her cat, Theo.
To our Blog Editor: Great and fair reporting, and your blog should put WNBA as a thought leader on the previously desolate and bleak map of Long Island City. Would love to hear from others as Amazon spreads its reach in Queens and the NY area.
Thanks for the feedback Sheila; glad you enjoyed the article! We have Social Media Manager, Audrey Webster to thank for this well-researched, thorough piece!