Amazon's growing pains in Seattle offer lessons to new hosts

16 November, 2018, 18:10 | Author: Gerard Cortez

"The Nashville facility will probably decide how Amazon's infrastructure will be growing and changing, driving where new facilities are being built and figuring out new shipping lines".

"We like to win, and we're used to winning, so while we are disappointed, we understand Amazon's decision is one they believe is best for their company at this time", said Mike Rosa, senior vice president of economic development at the Dallas Regional Chamber.

According to NY officials the combined incentives offered for the Queens site total almost $3 billion, including both direct grants and tax breaks and commitments to improvements related to the project.

Kim's bill would cancel the publicly-funded subsidies within the deal-which, the legislator noted, goes against NY law. A few Wall Street banks, for example, have sent many of their back-office jobs to states far from NY.

"I'm not against jobs, but I am against jobs that cost $3 billion in public money", Gianaris said.

For its part, Amazon agreed to limit landings on the pad to no more than 120 a year, restrict it to "corporate use" only and agree to fly "exclusively over water or the Development Sites".

"I guess if you are creating 25,000 new jobs, you can rename the neighborhood!"

National Landing was not an invention of Amazon CEO Jeff Bezos, but was instead dreamed up by local economic development officials, who created it as part of their attempt to lure the e-commerce giant.

The company announced its decision on Tuesday, Nov. 13, following a yearlong search and bidding process for its new headquarters and the 50,000 jobs expected to go along with it.

The combined offer from New York State and New York City is considerably richer than the one offered by Virginia, and does not require approval by any local or state legislative body.

"One of the wealthiest companies in history should not be receiving financial assistance from the taxpayers while too many NY families struggle to make ends meet", said Gillibrand, who said last week she is contemplating a 2020 presidential run.

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"New York's following its usual practices", Bartik said.

Still, Amazon's total subsidies will likely end up much higher, LeRoy said.

The city recently committed to invest $95 million in sewer upgrades, a new school, safer streets and more parks in the neighborhood, but Lewandowski said that infrastructure still remains far behind. Roughly one-third of residents in Washington, D.C., and 40 percent in NY pay more than 30 percent of their income on housing, the groups, which include LeRoy's Good Jobs First, pointed out.

In a press release, the organization suggested that some of the subsidies going to Amazon have not been disclosed by the company.

Just look to the Pacific Northwest, where both Amazon and Seattle have transformed dramatically together and sometimes at odds over the past 24 years, prompting resentment among a certain crowd of wistful "mossback" natives. The tech firm will also rent about 500,000 square feet in three existing properties, though it will probably leave some of that space once the new offices are built, Kelly said.

Amazon's trip to Queens has been met with some pushback.Xavier Harding/MicAmazon sign at the rally in Long Island City, New YorkXavier Harding/Mic " Greed kills LIC" sign at the Amazon rallyXavier Harding/MicAmazon boxes at the anti-HQ2 rallyXavier Harding/MicNew York City Council member Jimmy Van Bramer and state Sen.

There's another cash grant of $325 million based on the company occupying a certain amount of office space.

Amazon did not mention the Long Island City opportunity zone tax breaks Tuesday in any of its announcements about the new campus.

The Toronto bid - which also included Mississauga, Brampton and communities in York, Durham and Halton regions - made the 20-city short list earlier this year, but Amazon ultimately chose to locate its new operations in New York City and Crystal City, Va., in the United States.

Unconvinced, activists in Long Island City vowed to fight Amazon's plan Wednesday, criticizing the bidding process's lack of transparency.

"The big question you have to answer in evaluating these incentives is what would have happened if they didn't provide them?" he said.


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