Economy

Amazon delivers news of HQs in NY and Washington DC

Amazon delivers news of HQs in NY and Washington DC

National Landing will also include parts of neighboring Pentagon City and Potomac Yard in Alexandria.

The three locations could create some 55,000 jobs in the next two decades. "It's truly a privilege for Savanna to have the opportunity to partner with Amazon in a transaction that has the potential for tremendous job creation for New York City, and we look forward to a successful execution that will bring extraordinary benefits to the neighborhood, the city and region as a whole".

How did it make its decision?

It also wanted a suburban or urban area with more than 1 million people and access to mass transit.

Amazon stands to get almost $2.5 billion in tax breaks and other incentives as part of its deals to open up two new offices with more than 25,000 new jobs at each location.

The particular neighborhoods Amazon chose offer lower rents and more attractive zoning than central business districts nearby, a Brookings Institution report said. Hiring at both the new facilities will begin in 2019. "These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come".

Amazon is also receiving over $1.5 billion from NY for basing its headquarters there, and $573 million from Arlington.

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".

Amazon's plan to split its second headquarters, dubbed "HQ2", evenly between two cities will boost its presence around NY and the nation's capital as it seeks to gain a recruiting edge over Silicon Valley tech firms.

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So what about those tax benefits?

Even half of that would amount to one of the largest corporate location deals, according to Greg LeRoy, executive director of Good Jobs First, which tracks corporate subsidies.

Amazon.com Inc AMZN.O will on Tuesday announce it has selected NY and Northern Virginia for its second headquarters, a source told Reuters, ending a more than year-long contest that has seen frenzied bidding from locales across North America.

Some of the funds will go to improve transport, parks and other infrastructure in the neighbourhoods. In its announcement, Amazon said it could receive more than $2 billion in tax incentives from the two locations.

Amazon announced plans for a second headquarters in September 2017, saying that the company was growing faster than it could hire in its hometown, Seattle.

What does the decision tell us about the USA economy? We are not renaming Pentagon City.

Google, for example, is also planning a major expansion in NY.

Amazon has said employees who work in Seattle will have a chance to relocate.