Amazon will not build its second location on Long Island, New York, after local politicians showed resistance to granting him the tax advantages he demanded for the investment. The decision, announced as final on Thursday, comes after weeks of speculation with the viability of the project. The e-commerce giant says it has no plans to build those offices anywhere else "for now."
"We are disappointed to have reached this conclusion," Amazon said in a statement released Thursday at midday in New York. "For Amazon, the commitment to build a new headquarters requires positive collaborative relationships with local and state elected officials who support it in the long term. While surveys indicate that 70% of New Yorkers support our plans and our investment, a number of local and state politicians have made it clear that they oppose our presence and will not work with us to build the kind of relationship that is required. to move forward and that many others saw for Long Island City. "
Amazon, which disputes with Google, Apple and Microsoft the title of the world's largest company by market value, announced in the fall of 2017 that it intended to build a new headquarters outside of Seattle. The new campus would be just as big as the original. The company began receiving offers from cities throughout the United States that aspired to an estimated investment of 5,000 million dollars and some 50,000 jobs.
On November 13, Amazon announced that it was going to distribute in equal parts that investment comes in Long Island, New York, and Arlington, Virginia. The cancellation of the plans for New York does not affect the investment in Virginia, according to the statement on Thursday. Amazon will not look for a new headquarters, "for now".
The Wall Street Journal reported the past 8 of February that Amazon was rethinking the investment in New York, which supposedly would produce 25,000 jobs, due to the opposition of some local politicians to the fiscal incentives and public investments demanded by the project. The mayor of New York, Bill de Blasio, and the Governor of the State, Andrew Cuomo, agreed to give the company tax incentives that reached 3,000 million dollars.
In this process, councilors of the City of New York have questioned all aspects of the project, from tax incentives to their effects on the gentrification of Long Island and the impact of Amazon on small businesses. In that battle they also represented unions and associations of small merchants that galvanized opposition to the project. The final decision of Amazon, according to the Journal, has arrived after one of the main opponents of the project was appointed to a key position in which he would have veto power over it.
"We are deeply grateful to Governor Cuomo and Mayor De Blasio and their teams, who have enthusiastically invited us to build in New York and have supported us in the process," the company said Thursday in the statement. Amazon does not leave New York, explains the company. "We currently have 5,000 employees in Brooklyn, Manhattan and Staten Island and we plan to continue to grow those teams."
Among the 20 cities pre-selected before making the final decision, the only one in the west of the country was Los Angeles. The conditions that the city offered to Amazon are secret, protected by a confidentiality agreement and not subject to transparency laws because it is a private company. When Amazon announced its decision on New York, Los Angeles Times reported some relief among some local politicians Angelinos not to have to deal with the consequences.