Amazon will open major outlets in North Virginia, Crystal City and New York City divide its coveted investment of up to 50,000 jobs between the two east coasts, announced the company Tuesday.
"We are excited to build new headquarters in New York City and Northern Virginia," Amazon's founder and CEO Jeffrey P. Bezos said in a statement. "These two places will allow us to attract world-class talent that will help us continue to perceive customers for years to come. The team did a great job of selecting these sites and we are looking forward to becoming an even bigger part of These fellows. "
The company also announced that it has chosen Nashville for 5,000 jobs as part of a new Center for Excellence Operations, which is responsible for the company's customer satisfaction, transportation, supply chain and similar activities.
The choice of Crystal City in Arlington County as one of the winners cement Northern Virginia's reputation as a magnet for business and will potentially transform the Washington region into an eastern outskirts of Silicon Valley over the next decade.
The choices came with a price tag, where details only became public. Virginia Gov. Ralph Northam (D) and Arlington County executives agreed to give Amazon direct subsidies of a total of $ 573 million based on the company that creates 25,000 jobs with an average salary of $ 150,000. The state and the county will also invest a total of $ 223 million for transport improvements that will benefit Amazon as well as the rest of the community.
The money, which is subject to approval by the Virginia General Assembly, also includes $ 195 million in transport improvements to nearby subway stations, Reagan National Airport and to build pedestrian crossroads that relate to the company's new hub as will be in a recently-labeled neighborhood called "National Landing, which includes parts of Pentagon City and Crystal City in Arlington and Potomac Yard in Alexandria.
Virginia Tech plans to build a $ 1 billion educated campus in Alexandria focused on innovation part of the higher education package the state offered the company.
Northam said Virginia's tech talent and stable business environment were the keys to landing the prize. Made a formal announcement of the deal in a warehouse in Crystal City on a website that eventually containing an Amazon property, he told a host of state and local officials and business executives: "We are dedicated to being ahead of the next technology and innovation breakthrough. "
Draped over the lecture where Northam spoke was a cartoonist," Virginia is for Amazon lovers. "
New York executives offered Amazon more money – $ 1.85 billion, much of it also linked to the company's job growth and pay.
The decision addresses Northam and local leaders the biggest economic development award in a generation – a promising billions of dollars in capital investment alone – but can also put pressure on the region's already steep housing prices, overcrowded roads and remuneration distinguish between prosperous and low income residents.
Northam said in a statement that he expected Amazon to invest 2.5 billion dollars in the Commonwealth and create 3.2 billion dollars in tax revenues.
According to one 25-page agreement between the company and the state, Amazon expects to employ 400 people in 2019 and 1,180 the following year. It expects to create at least 25,000 jobs by 2030 and potentially a total of 37,850 by 2034.
"This is a big win for Virginia – I'm proud Amazon recognizes the enormous assets Commonwealth has to offer and plans to deepen its roots here," he said. .
It also represents a victory for New York mayor Bill de Blasio (D) and Gov. Andrew M. Cuomo (D) who had played that he would change his name to "Amazon Cuomo". If necessary to land
Other cases included District, Montgomery County and 16 other jurisdictions Amazon assessed since narrowing their list in January. Mayor Muriel E. Bowser (D) and Maryland Gov. Larry Hogan (R) both applauded the announcement. Bowser also urged regional leaders to create concrete affordable housing goals – an acute problem such as eco Nomer says, will probably worsen as Amazon grows.
"Amazon in Arlington is a victory for D.C.," Bowser said in a statement. "We will continue to prepare residents with the skills and knowledge they need for the future's tasks, including in Amazon."
Hogan said he expects to see other companies move to the region to be close to Amazon. "Overall, we will not only have 25,000 business-level jobs, but also many businesses that are part of the Amazon supply chain," said Hogan.
AOL founder Steve Case, who now works with technology entrepreneurs in smaller cities, issued a statement that encouraged them not to lose faith despite the choice of two East Coastal Quartz.
"The best economic strategy is not to entice existing companies to open offices or factories, but instead of giving birth to the new companies that may be Amazons tomorrow, he said. But in the same breath, it took long-lasting Northern Virginia settled a victory cover: "Amazon's announcement is a victory not only for VA but also for the entire larger DC region."
Resistance to the movement started shortly after the announcement, as groups dedicated to combating inequality and opposition to corporate support began to rally their followers in both New York and Virginia as details of the deal began to appear.
"We have been interviewing and inviting Queens residents all day to do this. Society's answer? Opprør, says rep. Elected Alexandria Ocasio-Cortez (DN.Y.), who will decide on in January.
Many were concerned about living costs and asked why a company is run by Bezos – the richest person in the world
It is "unfathomable that we would sign a $ 3 billion check for Amazon," claimed New York Sen. Michael Gianaris and city council member Jimmy Van Bramer, especially given the city's crumbling subways, crowded schools and inadequate health care.
"We witness a cynical game where Amazon drives New York to offer unprecedented amounts of tax money to one of the richest companies on Earth for a promise of jobs that would make up less than 3 percent of jobs that are usually created in the city Spring over a 10 year period, they wrote in a statement.
But Cuomo said the benefits of dwarf subsidies.
"The revenue-to-incentive ratio is 9 to 1. It's the highest return for an eco-incentive program that the state ever has offered, said Cuomo. He opposed it with a return from the state's film tax credit, where he said the state received $ 1.15 for every $ 1 it invested.
Similar concerns were spoken in Virginia.
"Thousands of new high paying jobs can be a boon to our community, but we deserve to know the cost," said Anna Scholl, CEO of Advocate Group Progress Virginia. "Thousands of new workers and their families are sure to push socially resources in terms of cheap housing, mass transit and traffic and local quality schools. It's just right that Amazon pays its fair share. "
Jay Carney, Amazon's senior vice president for world-wide business, said that the company carefully assessed all the sites and reviewed 100 different calculations, but eventually made its decision – including the choice to split the project – based on how well the company could recruit that talent he needs.
"We realized that of course there are two amazing metropolitan areas, each of which has an existing talent pool and are wonderful places to live," he said in a telephone interview.
Carney said that Amazon would use some of lessons learned from the growth in Seattle to his new places. He said Bezos was "involved very deeply" in the process and was in every leadership meeting where it was discussed.
Amazon's decision to split the project instead of opening a second headquarters on par with his campus in Seattle, has regretted someone who said the company had only increased competition between cities to change the rules midway. Some said that was unfair that the company seemed to consider only places in more affluent communities.
"A different thing here we are planning in advance with these cities. Amazon started in a garage. No one predicted, not even Jeff when they were released that Amazon would be what it became or that we would have tens of thousands of staff in Seattle alone, said carney.
Amazon launched the project in the fall of 2017, dubbing the HQ2 and issuing search criteria for "another headquarters" with as many as 50,000 jobs and an investment of $ 5 billion.
in choice By Crystal City, Amazon chose a nearby suburb just across the Potomac River from Washington and half a mile from the National Airport. Outdated buildings and under-utilized properties now fill the site where some offices have recruited vacancies.
The committee represents a triumph for the growth strategy to Arlington and Alexandria to promote development along mass transit routes. The site is located near Crystal City subway station on Blue and Yellow lines and the planned Pot The Omac Yard drive will open in 2021.
But residents of the nearby Del Ray area of Alexandria expressed concern earlier this year that Amazon's arrival would worsen daily rush-time backups that already lower traffic to a creep and will destroy the quality of life in their neighborhood, mainly in detached houses.
The decision marks a dramatic rise in the fortune of Crystal City, which lost thousands of jobs when military agencies and defense contractors resigned in the Pentacle Defense Completion (BRAC), which began in 2005.
An advantage is that the properties are superior to a simple, well-capitalized company, JBG Smith. The $ 4.4 billion company is the region's largest real estate agent and most active developer, and owns a majority of the property in the bid – enough to accommodate the entire project itself in Crystal City and Potomac Yard.
Amazon's choice also Burnishes Northern Virginia stands as an attractive place for corporate headquarters. Over the past 15 years, it has dropped the Volkswagen Group of America to Herndon, Northrop Grumman to Falls Church, Hilton Worldwide to Tysons and Nestles US headquarters to Arlington.
Northam said in March that the state's pitch is centered on labor development, inclusivity and transport, along with quality of life.
Although 238 sites first sent suggestions to Amazon, many experts considered the Washington region a favorite from the beginning because of Bezo's personal connections in the region, especially the $ 23 million he bought in the city's Kalorama neighborhood last year and his ownership to The Post.
Others suggested that Amazon leaders wanted to be close to Washington to be cozy up to federal governments either due to increased concerns that regulators can pursue antitrust actions against the company or because the government has become a critical Amazon customer.
Virginia also offers the political advantage
Amazon previously announced that it would be the headquarters of its cloud computing device, Amazon Web Services, in Herndon, near some of the data centers.  The Washington area also fits naturally with many of the criteria Amazon demanded in its search, including a deep pool of skilled workers, a robust public transit system and easy access to the airport.
Amazon launched its search in September 2017, vowing to make a decision by the end of 2018 and occupy an initial building of 500,000 square feet in 2019.
The company says that the Seattle headquarters have injected $ 38 billion beyond what it used to their buildings in the area's economy, and generated an additional $ 1.40 for every dollar the company spent.
Seattle officials have not contested the numbers, but they have also run to keep up with the company's dizzying growth and the demands it puts on public transport, schools, roads, parks and utilities. The company now has over 45,000 employees, which has more than 40 buildings and 10 million square meters of office space.
Compared with other major companies, Amazon employees are less likely to commute by car, as about 55 percent either go, bike or take public transport, according to a survey conducted by the Seattle workforce. The company buys transit cards for employees and builds a dedicated cycle path to separate bicycles from cars near Seattle buildings.
Amazon's growth will probably also add new tribes to homes. Since Amazon's arrival, Seattle has become one of the most expensive places in the United States to live, and forces income-rich residents to move to far beyond suburbs. The city and surrounding King County declared an emergency in 2015 over homelessness.
Even without Amazon, the Metropolitan Washington Government Council estimated that the region must add 235,000 homes in 2025 to keep up with expected growth in jobs. Amazon's arrival could push the target of 267,000, according to a recent analysis from the Urban Institute. Now it is time to add about 170,000 new units by 2026.
Since the beginning of the headquarters, Bezos and the company have made several announcements that could soften the Amazon image while moving to open its second hub.
Bezos announced in September that he would donate $ 2 billion of his own money to support groups fighting for homelessness in America and to create a network of preschools in underprivileged communities. In October – after saving months of criticism from Sender Bernie Sanders (I-Vt.) Over his treatment of workers – Amazon announced that it would raise its minimum wage for all employees at $ 15 per hour.
The minimum wage decision is unlikely to have a major impact on the company's employment in northern Virginia, where Amazon states that the facility will employ mainly employees with an average salary of more than $ 100,000 a year.
Before Amazon announced its search, Washington area jurisdictions – forced in part by federal budget cuts – had already been diversifying their workforces away from an addiction to federal spending. The region received more than 55,000 jobs annually from 2015 to 2017 despite budget cuts and stagnation in the congress. However, job growth has been slower than average among large metropolitan areas.
Patricia Sullivan, Gregory S. Schneider, Michael Laris and Fenit Nirappil contributed to this report.