Dive Brief:
- Amazon is ending its plans to open an additional headquarters in New York, the company announced Thursday. The Long Island City, Queens site received pushback from residents and legislators following the November announcement.
- "A number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City," Amazon said in the statement.
- Though the New York headquarters fell through, Amazon does not plan to restart the HQ2 search, the company said in a statement. The company plans to move forward with headquarters in National Landing, Virginia and Nashville.
Dive Insight:
Amazon cited polls showing 70% of New Yorkers supported the New York headquarters, but after the deal was announced in November, many questioned elements of the bid — including the requests for a New York helipad.
Much of the critique asked why a company as wealthy as Amazon would receive hundreds of millions of dollars in tax breaks from the city.
While the plan for the Virginia headquarters was quickly approved by legislators, New York was left in limbo. Though New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio supported the deal, a vocal minority persisted.
De Blasio defended the deal because of the promise of 25,000 to 40,000 jobs. Local leaders in Queens held a rally earlier this week, touting the benefit to local residents because of the potential for neighborhood revitalization and social mobility, reports ABC 7 New York.
What's next for Amazon's expansion is unknown; 25,000 planned jobs in New York could find homes elsewhere. Meanwhile plans for National Landing are in and hiring is slated to start by the end of this year. While initial hiring could cause a net negative for Virginia and Tennessee, long term Amazon's presence could attract a wider talent pool for companies to draw from.
