Amazon's Nyc Infrastructure Investment: A Missed Opportunity?

Amazon's decision to invest in New York City has been a hotly debated topic. In 2017, Amazon announced its intention to build a second North American headquarters, dubbed HQ2, sparking a competition among cities across the US to attract the company's investment and the 50,000 potential new jobs it would bring. New York City was chosen as one of the locations for HQ2, along with Arlington, Virginia, with Amazon planning to invest $5 billion and create 25,000 jobs in each location. However, the decision faced opposition from unions, activists, and politicians, who objected to the nearly $3 billion in subsidies and tax incentives offered to Amazon. Despite the controversy, Amazon has expanded its presence in NYC, including a new hub office in the former Lord & Taylor building on Fifth Avenue, housing about 2,000 employees.

Amazon's investment in NYC infrastructure will be in the Long Island City neighborhood in Queens

Amazon's investment in New York City's infrastructure will be focused on the Long Island City neighborhood in Queens. The tech giant's arrival in Long Island City is expected to bring about significant changes to the area, with a projected addition of over 25,000 jobs to the city's labor force.

The company plans to build a campus of at least 4 million square feet near the Anable Basin on the East River waterfront, with a mix of state-owned and privately owned land. To facilitate this project, the state will employ a General Project Plan (GPP) to override local regulations and rezone the lot, which is currently designated for manufacturing.

The deal includes nearly $3 billion in subsidies and incentives for Amazon, including $897 million from the city's Relocation and Employment Assistance Program (REAP) and $386 million from the Industrial & Commercial Abatement Program (ICAP). Additionally, Amazon will receive a $505 million capital grant and is eligible for $1.2 billion in "Excelsior" credits if its job creation goals are met.

Amazon's presence in Long Island City is expected to have a substantial impact on the surrounding neighborhoods as well. Areas like Greenpoint, Sunnyside, and Astoria, with their older homes and more limited transit connections to Manhattan, may become more attractive to future Amazon employees.

The investment in Long Island City's infrastructure will also include funding for streets, sidewalks, and open spaces through the city's PILOT (payment in lieu of taxes) program, with community engagement playing a role in deciding how these funds will be allocated. Amazon has also committed to investing in workforce development, job training, and the construction of a new school on its campus.

Amazon will receive performance-based direct incentives of $1.525 billion based on creating 25,000 jobs in Long Island City

Amazon will receive performance-based direct incentives of $1.525 billion if it creates 25,000 jobs in Long Island City, New York. This is part of a larger incentive package of $3 billion from the state and city to attract one of the world's wealthiest companies to Queens.

The $1.525 billion in performance-based incentives includes a refundable tax credit of up to $1.2 billion through New York State's Excelsior Program. This is calculated as a percentage of the salaries Amazon expects to pay employees over the next 10 years, equating to $48,000 per job for 25,000 jobs with an average wage of over $150,000. The remaining $325 million will come in the form of a cash grant from Empire State Development, based on the square footage of buildings occupied over the next 10 years.

Amazon will receive these incentives over the next decade as it reaches building occupancy targets and based on the incremental jobs it creates each year. The company will also apply for additional as-of-right incentives, including New York City's Industrial & Commercial Abatement Program (ICAP) and New York City's Relocation and Employment Assistance Program (REAP).

The community will also benefit from Amazon's presence, with the company agreeing to donate space on its campus for a tech startup incubator, artists, and industrial businesses. Amazon will also donate a site for a new primary or intermediary public school. Additionally, the company will invest in infrastructure improvements and new green spaces.

Amazon's new NYC office is in the former Lord & Taylor building on Fifth Avenue in Manhattan

The new office, named "Hank" after a unit of textile measurement for yarn, is located in Midtown Manhattan. It has space for more than 2,000 employees, about a fifth of Amazon's New York-area workforce. The building measures over 600,000 square feet and features a rooftop terrace, a courtyard, and various setups for staff to work, meet, and socialise.

Amazon hired WRNS Studio to design the landmark as a 21st-century workplace that embraces its fashionable roots. The design preserves several historic details of the original building, including cast iron arches, glass windows, and terracotta ceilings. The project also repurposed other artifacts, such as wood panels from a Scottish castle now seen on a fireplace and brass lintels from old elevators that have been turned into a sculpture.

The office features a cafe named "Dot's" after Dorothy Shaver, the first woman president of a large department store, a unique workspace called the "Bird Cage," and a spiral staircase connecting levels 11 to 13. Each floor in the office has a different theme inspired by textiles and the garment industry.

Amazon's investment in this new NYC office demonstrates its commitment to expanding its presence in the city and adapting historic spaces to meet the needs of a modern workforce.

Amazon will invest $5 billion and create more than 50,000 jobs across the two new headquarters

Amazon has announced that it will invest $5 billion and create more than 50,000 jobs across its two new headquarters in New York City and Arlington, Virginia. The new locations will join Seattle as the company's three headquarters in North America.

The company plans to create more than 25,000 jobs at each location, with hiring beginning in 2019. Amazon's presence is expected to spur the creation of tens of thousands of additional jobs in the surrounding communities.

In New York City, Amazon will invest approximately $2.5 billion and will receive performance-based direct incentives of $1.525 billion based on creating 25,000 jobs in Long Island City, Queens. The company will benefit from New York's infrastructure, including its extensive transit access with 8 subway lines, 13 bus lines, commuter rail, and close proximity to LaGuardia and JFK airports.

Amazon's investment in New York City is expected to generate an estimated incremental tax revenue of more than $10 billion over the next 20 years. The community will also benefit from improvements to infrastructure and new green spaces funded through a Payment In Lieu Of Tax (PILOT) program.

In Arlington, Virginia, Amazon will invest approximately $2.5 billion and will receive performance-based direct incentives of $573 million based on creating 25,000 jobs with an average wage of over $150,000. The Commonwealth of Virginia will invest $195 million in infrastructure improvements in the neighborhood, including enhancements to metro stations and the construction of a pedestrian bridge connecting National Landing and Reagan National Airport.

Amazon's investment in Virginia is expected to generate an estimated incremental tax revenue of $3.2 billion over the next 20 years.

In addition to its two new headquarters, Amazon has also selected Nashville as a new Operations Center of Excellence, creating more than 5,000 jobs and generating over $1 billion in estimated incremental tax revenue over the next 10 years.

Amazon's expansion into these new locations demonstrates its commitment to attracting top talent and continuing to innovate on behalf of its customers.

Amazon's HQ2 deal with NYC includes just under $3 billion in subsidies

In 2017, Amazon announced its plans to build a second North American headquarters, dubbed "HQ2", sparking a 14-month search with hundreds of cities vying to be chosen as the new location. Amazon's HQ2 deal with New York City includes just under $3 billion in subsidies, with New York City set to provide $1.3 billion in tax breaks on top of New York state's incentive package of up to $1.7 billion in grants and tax breaks. This amounts to a total of $2.988 billion in public funds granted to Amazon, or $48,000 per job.

The agreement includes a number of incentives for Amazon. Firstly, the company will receive $897 million from the city's Relocation and Employment Assistance Program (REAP) and $386 million from the Industrial & Commercial Abatement Program (ICAP). Additionally, they will receive a $505 million capital grant and are expected to receive up to $1.2 billion in "Excelsior" credits if they meet their job creation goals. Amazon may also earn additional tax breaks separate from the city and state subsidies, as the Long Island City census tract where HQ2 will be built is designated as an opportunity zone under the Tax Cuts and Jobs Act.

In exchange for the subsidies, Amazon has pledged to invest up to $5 billion in the new headquarters and create 25,000 high-paying jobs over the next decade, with the potential for up to 40,000 jobs. The state estimates the project will generate $27.5 billion in state and city revenue over 25 years and facilitate 1,300 construction jobs and 107,000 total direct and indirect jobs. Amazon has also agreed to allocate $5 million for workforce development and to host job training sessions and job fairs at the nearby Queensbridge Houses.

Despite the economic benefits touted by supporters of the deal, including Mayor Bill de Blasio and Gov. Andrew Cuomo, there has been significant criticism and opposition. Opponents, including state and local officials, have raised concerns about the amount of public money being offered to a wealthy company, the lack of community input, and the potential negative impact on local infrastructure and public transportation.

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