Amazon to Split Second HQ Between New York, Northern Virginia

images.pngAmazon today announced that it has selected New York City and Arlington, Virginia, as the locations for its new headquarters. Amazon says it will invest $5 billion and create more than 50,000 jobs across the two new headquarters locations, with more than 25,000 employees each in New York City and Arlington. The new locations will join Seattle as the company’s three headquarters in North America.

Amazon set off a nationwide bidding contest last fall when it announced it was looking for a site for a second headquarters. The Maryland General Assembly approved $8.5 billion in tax and infrastructure incentives, the largest economic development package in state history, on the hope the tech giant would build a new headquarters here.

And while Maryland ultimately lost out on the highly-publicized, Olympic-style search that lasted over a year and attracted 238 bids from across the United States and Canada, the state could still see residual benefits. The internet retail behemoth says that the Crystal City headquarters “will spur the creation of tens of thousands of additional jobs in surrounding communities.”

According to a press release:

The new Washington, D.C. metro headquarters in Arlington will be located in National Landing, and the New York City headquarters will be located in the Long Island City neighborhood in Queens. Hiring at both the new headquarters will begin in 2019. The Operations Center of Excellence will be located in downtown Nashville as part of a new development site just north of the Gulch, and hiring will also begin in 2019.

“We are excited to build new headquarters in New York City and Northern Virginia,” said Jeff Bezos, founder and CEO of Amazon. “These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come. The team did a great job selecting these sites, and we look forward to becoming an even bigger part of these communities.”

As part of Amazon’s new headquarters, Virginia and Arlington will benefit from more than 25,000 full-time high-paying jobs; approximately $2.5 billion in Amazon investment; 4 million square feet of energy-efficient office space with the opportunity to expand to 8 million square feet; and an estimated incremental tax revenue of $3.2 billion over the next 20 years as a result of Amazon’s investment and job creation.

Amazon will receive performance-based direct incentives of $573 million based on the company creating 25,000 jobs with an average wage of over $150,000 in Arlington. This includes a workforce cash grant from the Commonwealth of Virginia of up to $550 million based on $22,000 for each job created over the next 12 years. Amazon will only receive this incentive if it creates the forecasted high-paying jobs. The company will also receive a cash grant from Arlington of $23 million over 15 years based on the incremental growth of the existing local Transient Occupancy Tax, a tax on hotel rooms.

The community and Amazon employees will benefit from the Commonwealth investing $195 million in infrastructure in the neighborhood, including improvements to the Crystal City and the Potomac Yards Metro stations; a pedestrian bridge connecting National Landing and Reagan National Airport; and work to improve safety, accessibility, and the pedestrian experience crossing Route 1 over the next 10 years. Arlington will also dedicate an estimated $28 million based on 12% of future property tax revenues earned from an existing Tax Increment Financing (TIF) district for on-site infrastructure and open space in National Landing.

Useful Links

Read the Full Press Release from Amazon

Previous Conduit Street Coverage: The Costs of Luring Amazon

Hear how Amazon could impact Maryland’s economy at the MACo Winter Conference general session, “2019 Economic Outlook.”

The MACo Winter Conference will be held January 2-4, 2019 at the Hyatt in Cambridge, Maryland. This year’s theme is, “Charting the Course.”

Learn more about MACo’s Winter Conference:

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