Amazon announces HQ2 winners – WSJ
Amazon said it would invest $ 5 billion in the two new offices each with more than 25,000 employees in New York City's Long Island City and in Arlington, Va., In the National Landing area, located in Washington, DC , metroom area. National Landing is an area that is part of the Crystal City and Pentagon City areas of Arlington.
The company also said that it would create a new operation center in Nashville with more than 5,000 jobs.
The decision effectively provides Seattle-based Amazon a great presence in three coastal hubs that politically lean on the left, at a time when tech companies are under control of their perceived elitism and liberal social views.
Government officials in both New York and Northern Virginia were expected to hold events for announcements later on Tuesday.
Amazon's long search for a new headquarters location ̵[ads1]1; called HQ2 – could be better named HQ square. With 50,000 jobs and $ 5 billion in game investment, here's a look at the big lengths that the cities went to woo tech giant and why Amazon finally hit two places.
New York City mayor Bill de Blasio discussed the Amazon deal Monday night during his weekly television appearance, although he did not confirm that the city had been officially elected. He was hoping that HQ2 would come to New York City. "We're talking about the only major economic development agreement in New York City's history," he said.
The Amazon Moving to New York throws it against rival Google, which provides for its own expansion in the city. The Wall Street Journal reported last week that
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The unit will add office space for more than 12,000 new workers, an amount that almost doubles the search giant's current crew in the city, saying people familiar with the case. On Monday night at the journal's D.Live tech conference, Google's financial director Ruth Porat confirmed that the company plans to double its New York City staff of 7,000 over a decade.
The District of Columbia area, which had three locations among the finalists including Crystal City, was long regarded as a leading candidate in part because Amazons CEO Jeff Bezos has a second home there and he owns the Washington Post.
Crystal City, a 1960s office and residential construction near the Pentagon, has seen its fortune in the last decade or so, as major employers, including the Department of Defense and private tenants, have drawn up efforts.
The clean size and proximity to Washington, Reagan National Airport, Metro stop and other transportation made it an attractive prospect for Amazon's ambitious second headquarters, according to people who have been involved in the discussions. In addition to the complaint, it is also largely in the hands of a single developer.
A potential disadvantage is the region's notorious bad traffic, which is likely to require significant new investments, according to people familiar with the matter. Amazon's impact on homes can be significant.
Virginia can be a good fit for Amazon politics, as an important little swing mode that promises political nonsense, no matter what party in force. While the D.C. area lacks New York's groundbreaking culture, it's big, very varied and just maybe hip enough.
Long Island City, in Queens, was a long-term industrial area experiencing a residential tree, with more than 16,000 new apartments built since 2006. It is the fastest growing community in New York City.
The neighborhood is along the East River and is accessible by several subway lines, Long Island Rail Road and two ferry stops. It is also located near La Guardia and John F. Kennedy International Airports.
While the city included four neighborhoods in its original bid, officials were borrowing from Long Island City from the start, according to people familiar with the process. [19659003] Amazon began its search for North America in September 2017, aiming at creating a second, similar to Seattle's headquarters. It had said that the new location would contain about 50,000 jobs and represent billions in investments.
Amazon narrowed the competition to 20 finalist cities in January, asked for data frames and made whirlwind two days on-site visits, where cities tried to impress the company's economic development team.
Then came the big surprise a week ago when the Journal reported that Amazon planned to divide its second headquarters steadily between two places instead of choosing a city. The change in plans came after Amazon leaders concluded that it could recruit more of the best technological talents if it spread the office over two sites. And by halving the size, Amazon will help to alleviate potential issues with housing, transit and other areas where there are problems with adding tens of thousands of workers.
The decision to split what was considered one of the major economic development projects in recent history triggered criticism of Amazon's initial intentions, but also fresh hopes. Some of the city officials said they would have tailored their proposals to match that need, while others said that they thought it increased the city's chances.
The column also raised questions about how the two new places will be with Amazon's current Seattle base, such as Employees more than 45,000 people.
Amazon has a number of qualifications for the choice of its new headquarters, including access to mass transit, proximity to an airport with direct flights to and from Seattle, and perhaps most of the available technical talent nearby. The company also knew if it would be one of the biggest companies in a city, which could make it a magnet for the same type of survey it receives in Seattle over social issues. In addition, Amazon hoped to show a real economic impact through its investments in a new area, highlighting the skills of the jobs.
Some economic development experts arose in the Amazon decision to publicize the process, resulting in complicating factors, including a longer than usual short list and speculative real estate buying around suggested places.
It has also led to further review of potential incentives Amazon can locate in specific areas.
The process has still resulted in a year of positive publicity, emphasizing Amazon's ability to create jobs and investment, even as the company has met critics from President Trump to Vermont Sen. Bernie Sanders, who has called the company over problems such as payroll.
"This was truly a platform for Amazon to market the transition from traditional e-commerce" to a big tech company creates jobs across industries, "said John Boyd, Rector at Site Selection Advisory Boyd Co. "It was also a platform for the cities to market to a global audience."
The choice of new office sites follows Amazon's September announcement that it would raise its minimum wage for warehouse workers at $ 15 per hour. Amazon has also announced major employment plans over the past year as it builds out more stocks and extends its US workforce.
Amazone's decision leaves a group of cities that have spent months of resources and time without a clear reward. Some cities have said the process increased awareness of other possible economic development agreements.
-John McKinnon and Jimmy Vielkind contributed to this article.
Write to Laura Stevens at laura.stevens@wsj.com and Keiko Morris at Keiko.Morris@wsj.com
