New York state is kicking in more than $1.5 billion in taxpayer-funded incentives for getting half of Amazon’s second headquarters located in a section of Queens.
The Seattle-based company made its long-awaited announcement Tuesday, saying Long Island City and Alexandria, Virginia, will each get 25,000 jobs. The online retailer also said it will open an operations hub in Nashville, creating 5,000 jobs.
Amazon will also receive as-yet unspecified incentives from New York City.
New York state’s incentives are nearly triple those of Virginia’s, while Tennessee’s are $102 million.
According to Amazon, the cost per job for New York taxpayers is $48,000, compared to $22,000 for Virginia and $13,000 for Tennessee.
In a statement released by Amazon, Cuomo called the agreement “one of the largest, most competitive economic development investments in U.S. history.”
New York City Council Speaker Corey Johnson issued a statement saying: “Amazon is one of the richest companies in the world…I also don’t understand why a company as rich as Amazon would need nearly $2 billion in public money for its expansion plans at a time when New York desperately needs money for affordable housing, transportation, infrastructure and education.”
Newly minted Democratic socialist congresswoman Alexandra Ocasio-Cortez says New Yorkers are ‘outraged’ over Amazon tax break that could total $1.5 BILLION for hiring tens of thousands at new headquarters
Amazon has chosen two locations for its second headquarters, New York City and Northern Virginia
Retail giant is also making Nashville a new operations hub
Future congresswoman Alexandra Ocasio-Cortez blasted Amazon.com and the New York City government on Tuesday
She ‘s angry about a tax-relief agreement that lured the giant e-tailer to the Big Apple
Ocasio-Cortez describes herself as a Democratic socialist
She said on Twitter that she’s skeptical Amazon won’t let its new New York staff unionize, and wants the company to hire people in the neighborhood
Future congresswoman Alexandra Ocasio-Cortez blasted Amazon.com and the New York City government on Tuesday over a tax-relief agreement that will bring the giant e-tailer’s next business expension to the Big Apple.
Amazon’s take in the deal could exceed $1.5 billion, or $48,000 per new employee. According to the company, tax relief for hiring in northern Virginia, where its other new headquarters will go, will be about $22,000 per job.
Ocasio-Cortez, 29, identifies herself as a Democratic socialist in the vein of Vermont Sen. Bernie Sanders.
She claimed on Twitter that she’s hearing ‘outrage’ from residents of the borough of Queens where Amazon plans to locate part of its headquarters expansion.
‘Amazon is a billion-dollar company. The idea that it will receive hundreds of millions of dollars in tax breaks at a time when our subway is crumbling and our communities need MORE investment, not less, is extremely concerning to residents here,’ she added.
Even before Amazon.com Inc. decided to put a headquarters in Long Island City, the retail giant’s interest in the Queens neighborhood unleashed a condo gold rush.
Amazon’s interest was made known scarcely a week ago, yet brokers say they are already selling units—sometimes sight-unseen—via text message. Others are renting vans and packing them full of clients eager to view multiple buildings, or holding group tours in Chinese.
Now, with Amazon’s commitment to the New York City neighborhood, brokers are predicting the apartment market there will surge further.
“This is like a gift from the gods for the Long Island City condo market,” said Patrick W. Smith, a Stribling agent in the area.
Long Island City and Northern Virginia were selected to be the homes for Amazon’s second and third headquarters, according to people familiar with the matter. Each of the regions could house some 25,000 employees. The decision was disclosed Monday evening and confirmed by Amazon on Tuesday.
Up until last week, the Long Island City market had suffered from slowing sales and rising inventory. Now, some brokers say the sudden mood shift reminds them of the heady days of New York City’s condo boom just before the housing market crashed during the 2008 financial crisis. “This is the first time in my 20-year career that I have seen the market go from a buyer’s market to a seller’s market overnight, based on a rumor,” Mr. Smith said.