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Home / Business / Amazon pulls out plans to build New York City's headquarters after setbacks

Amazon pulls out plans to build New York City's headquarters after setbacks



Amazon announced Thursday, it was on its way back on plans to build its second headquarters in New York City, a spokesman for the company said in a statement. The move comes after backlash from lawmakers, especially Congressman Alexandria Ocasio-Cortez, who regretted the project.

"After much thought and reflection, we have decided not to go ahead with the plans to build an Amazon headquarters in Long Island City, Queens," said Seattle-based Amazon in the release.

  US Rep. Alexandria Ocasio-Cortez, (D-New York) waves to the crowd after talking at the Women & # 39; s Unity Rally organized by Women & # 39; s March NYC at Foley Square in Lower Manhattan, Saturday, January 19, 2019, in New York. Ocasio-Cortez had been extremely critical of Amazon's planned headquarters in New York. (AP Photo / Kathy Willens)

U.S. Rep. Alexandria Ocasio-Cortez, (D-New York) waves to the crowd after talking at the Women & # 39; s Unity Rally organized by Women & # 39; s March NYC at Foley Square in Lower Manhattan, Saturday, January 19, 2019, in New York. Ocasio-Cortez had been extremely critical of Amazon's planned headquarters in New York. (AP Photo / Kathy Willens)

"For Amazon, the commitment to building a new headquarters requires positive, collaborative relationships with government and local elected officials who will be supportive in the long term. While polls show that 70% of New Yorkers support our plans and investments, a number of government and local politicians have made clear that they are opposed to our presence and will not work with us to build the kind of relationships required to proceed with the project we and many others were thinking about in Long Island City reader. [19659006] OCASIO-CORTEZ CHEERS AS AMAZON REPORTED RECONSIDERS NEW HQ OF FIERCE OPPOSITION

The company added that it is "disappointed to have reached this conclusion."

  FIL-In this November 16, 2018 file Photo graffiti has been painted on a sidewalk by someone who opposes the location of an Amazon headquarters in the Long Island City area of ​​the Queens neighborhood of New York.

FIL- In this November 16, 2018, file photography has been painted on a sidewalk by some as opposed to the location of an Amazon headquarters in the Long Island City area of ​​the Queens neighborhood of New York.

"We are deeply grateful to Governor Cuomo, Mayor de Blasio, and their staff, who so enthusiastically and graciously invited us to build in New York City and supported us during the process," the company continued in the statement. [19659011] Bankrate.com's senior economic analyst Mark Hamrick called it a "fantastic development" and added: "For those who don't want Amazon to bring the promised 25,000 new jobs and add financial vitality to the area: Be careful what you want . "

AMAZON EXECS GRILLED, JEERED AT NEW YORK STADSRÅD HAVE HEARED ABOUT HQ2

The setback against HQ2 has been in the last few months. For example, in December, Amazon execs were grilled and cut off at a meeting in New York City over the deal.

  FILE - In this November 13, 2018, file file, a bird flies holding a fishing crab near a former pier plant, with "Long Island" painted on ancient transfer bridges at Gantry State Park in the Long Island City section of Queens Borough in New York.

FILE – In this November 13, 2018 file file, a bird flies holding fishing crabs near a former port facility, with "Long Island" painted on ancient transfer bridges at Gantry State Park in the Long Island City section of Queens Borough in New York.
(AP Photo / Bebeto Matthews, File)

Earlier in the month, reports discovered that Amazon was rethinking its plans for its New York office, which led to bowl from Ocasio-Cortez. "Can everyday people get together and effectively organize themselves against the crawling overreagration of one of the world's largest companies? Yes, they can," freshman asked lawmaker.

Ocasio-Cortez has also turned the company into confusion in face recognition technology

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Fox News has reached out to Governor Cuomo, Mayor de Blasio and Congresswoman Ocasio-Cortez office for comment.

  FIL- In this November 7, 2018, a photo shoot, a rusting ferry boat is located next to an aging industrial warehouse on Long Island City's Anable Basin in the Queens neighborhood of New York.

FIL- In this November 7, 2018, the file image is a rusting ferry boat docked next to an aging industrial warehouse at Long Island City's Anable Basin in the Queens neighborhood of New York.

Amazon said it would continue as planned with the second part of HQ2, which will be built in Northern Virginia as well as its distribution center as it said it would open in Nashville. It will also continue to "hire and grow across our 17 corporate offices and technav in the US and Canada."

The deal was met with a lot of fanfare when it was announced last year and was greeted as a major financial boost. 19659011] New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio had asked the benefits of Amazon's HQ2, which contained a promise from tech giant to create 25,000 jobs, and paid an average of $ 150,000 a year in exchange for a number of City and state tax breaks and subsidies worth up to $ 3 billion.

In addition to the 25,000 jobs, Amazon would have invested $ 2.5 billion in Amazon investment and eventually 8 million square feet of office space for Long Island City as part of its investment announced in November last year. The Seattle-based company said it would have generated "incremental tax revenues of more than $ 10 billion over the next 20 years due to Amazon's investment and job creation."

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According To To a December Quinnipiac University survey, 57 percent of New York residents support Amazon's arrival in the region compared to just 26 percent who oppose the deal, Fox Business reported earlier .

There had been concerns about what Amazon's decision could do to already rising property prices in the area, but Hamrick said this would not solve these issues.

"From a broader point of view, this decision will not do anything to address the challenge of housing searchability expressed by critics of the Amazon decision and the generous tax efforts offered by the government," said Hamrick in comments from Fox News.

Fox News & # 39; James Rogers contributed to this report, this is a breaking news story. Check back for updates.


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