Report: Amazon reconsidering NYC headquarters due to local opposition

State News

Amazon is rethinking its planned second headquarters in New York City as it faces delays and opposition from local politicians, according to a Washington Post report.

New York City and Virginia were both chosen as locations for a split of the second headquarters last year. But, according to the report, unlike Virginia — where lawmakers quickly approved an incentive package for the online retailer — New York officials might not give final approval for the project until next year.

According to the Washington Post, Amazon executives are now working to reassess the decision in New York and consider alternatives.

New York state reportedly offered Amazon $1.5 billion in incentives and tax breaks over the course of years to bring the second headquarters, and thousands of jobs, to New York.

Governor Cuomo called the decision “a big transformative move for our economy to take another step in the tech sector, which is a growing sector and diversifies our economy.” But critics have questioned the state giving out millions of dollars in incentives to the tech giant.

Governor Cuomo defended the tax breaks in November, arguing that the state is giving Amazon “nothing.”

The governor said, “Amazon, by our current tax structure, would generate approximately $1 billion per year in new revenue. Our proposal offered that, when and if those revenues are realized, the government would effectively reduce their $1 billion payment by about $100 million for a net to New York of approximately $900 million. New York doesn’t give Amazon $100 million. Amazon gives New York $900 million.”

Again, the report comes from the Washington Post, which is owned by Amazon founder Jeff Bezos.

UPDATE (3:15 p.m.): Speaking Friday, the governor is putting the blame on the State Senate for putting the Amazon headquarters in jeopardy.

The State Senate is trying to stop Amazon from coming to Queens. Amazon is the largest economic development program that this state has ever won. It was a national competition where states all across the nation were vying for Amazon. There is no business that brings 25,000 jobs anymore. They don’t exist. I spend days trying to bring a business that has 100 jobs, or 200 jobs. You don’t get 25,000 jobs. You don’t get 25,000 jobs average salary of $150,000. 

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