Amazon chooses New York City neighborhood, DC suburb for HQ2

Bloomberg News

Plus, even though smaller cities didn't land Amazon HQ2, Amazon did announce it would add 5,000 jobs at a new operations hub in Nashville, and has already added 6,000 jobs in numerous other 218 cities that did not make its list of the 20 finalists.

It said on Tuesday it will receive performance-based direct incentives of US$1.525 billion from the state of NY, based on the company creating 25,000 jobs in Long Island City.

Meanwhile, Lina Khan, a senior fellow with the Open Markets Institute, wrote in a Twitter post on Tuesday: "Amazon extracting highly favourable terms, only to halve its promise and expect those same terms, is an exercise of bargaining power that will be familiar to numerous millions of merchants reliant on Amazon's platform".

But in the end, Amazon chose two of the cities that need it least, Washington, D.C, and New York City, due to the strength of their talent pools, desirability for residents, and infrastructure.

It received applications from 238 candidate locations, which Amazon whittled down to 20 finalist cities by January 2018.

The Seattle-based company made its long-awaited announcement Tuesday, saying Long Island City and Alexandria, Virginia, will each get 25,000 jobs.

New York Mayor Bill de Blasio said if the HQ2 comes to the Big Apple, it would be "the single biggest economic development deal in the history of New York City", The Wall Street Journal reports.

While the incentives offered to Amazon are sizable, some of the other locations hoping for the nod had offered more.

Boston had pitched the Suffolk Downs site for Amazon to build on.

Amazon's statement said it would create four million square feet (370,000 square meters) of office space in NY, with an option to double that, and that the overall investment would boost tax revenue by some $10 billion over 20 years. Splitting the project in half could ease the impact, and help Amazon avoid some of the blame for higher housing prices or more traffic in those regions.

"While Philadelphia was not ultimately chosen for Amazon's HQ2, I thank Amazon for its consideration and am honored that we were among the top contenders", Kenney said.

Amazon did not immediately respond to Ars' request for comment.

Gianaris and Van Bramer were both among the Queens officials, along with Maloney, who signed the letter previous year supporting NY as a choice for HQ2.

"We expect HQ2 to be a full equal to our Seattle headquarters", said Jeff Bezos, Amazon founder and CEO.

With Long Island City and National Landing, the company is choosing two waterfront communities away from overcrowded business districts, giving Amazon space to grow. Its current headquarters is in Seattle, where the company's "urban campus" is woven into the fabric of the northwestern city.

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