Amazon chooses Northern Virginia and New York City for HQ2

Amazon and it’s 50,000 jobs have selected the two winners of the local economic stimulus lottery. New York City and Arlington Virginia will be the sites for HQ2. New York City Mayor Bill de Blasio has called this “the single biggest economic development deal in the history of New York City,”. The company also announced it would open a facility in Nashville, Tennessee creating just over 5,000 jobs in that area as well. Amazon locating its headquarters in these two cities will have a far reach for things like the housing market and traffic in those areas.

Take a look at this article from The Wall Street Journal for more information.

Amazon Announces HQ2 Winners

Amazon to divide second headquarters between New York’s Long Island City and Arlington County’s Crystal City neighborhoods

By Laura StevensKeiko Morris and Katie Honan Inc. AMZN -0.36% announced Tuesday New York City and a Northern Virginia suburb of Washington, D.C., would be homes for the company’s second and third headquarters, ending a more than year long public contest that began with 238 candidates and ended with a split of its so-called HQ2.

Amazon said it will invest $5 billion across the two new offices that will each have more than 25,000 employees in New York City’s Long Island City and in Arlington, Va., at the National Landing area, which encompasses Crystal City and is located in the Washington, D.C., metro area.

The company also said it would create a new operations center in Nashville with more than 5,000 jobs.

Amazon split HQ2 in half between New York and Northern Virginia in part because it wanted to recruit enough of the best tech talent. The decision effectively gives Seattle-based Amazon a major presence in three coastal hubs that politically lean left, at a time when tech companies are under scrutiny for their perceived elitism and liberal social views.

Government officials in both New York and Northern Virginia were expecting to hold events for announcements later Tuesday.

New York City Mayor Bill de Blasio discussed the Amazon deal Monday night during his weekly television appearance, although he didn’t confirm that the city had been officially selected. He was hopeful that HQ2 would come to New York City. “We’re talking about the single biggest economic development deal in the history of New York City,” he said.

Amazon’s move to New York pits it against rival Google, which is gearing up for its own expansion in the city. The Wall Street Journal reported last week that the Alphabet Inc. unit will add office space for more than 12,000 new workers, an amount nearly double the search giant’s current staffing in the city, people familiar with the matter said. On Monday night at the Journal’s D.Live tech conference, Google financial chief Ruth Porat confirmed the company plans to double its New York City staff of 7,000 over a decade.

The District of Columbia area, which had three locations among the finalists including Crystal City, was considered a leading candidate in part because Amazon Chief Executive Jeff Bezos has a second home there and owns the Washington Post.

Crystal City, a 1960s-era office and residential development close to the Pentagon, has seen its fortunes wane over the past decade or so, as major employers, including Defense Department and private-sector tenants, have pulled up stakes.

The neighborhood’s sheer size and proximity to Washington, Ronald Reagan Washington National Airport, Metro stops and other transportation made it an attractive prospect for Amazon’s ambitious second-headquarters plan, according to people who have been involved in the discussions. Adding to its appeal, it is also largely in the hands of a single developer.

A potential downside is the region’s notoriously bad traffic, which would likely require significant new investments, according to people familiar with the matter. Amazon’s impact on housing could be substantial.

Virginia could be a good fit for Amazon politically, as an important purple swing state that promises political clout no matter which party is in power. While the D.C. area lacks New York’s cutting-edge culture, it is big, highly diverse and just maybe hip enough.

Read More at The Wall Street Journal 


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