Amazon (AMZN) on Thursday announced it is canceling plans to build a secondary headquarters in New York City, due to mounting opposition from residents and politicians.
“For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term,” Amazon said in a written statement.
The company added: “While polls show that 70% of New Yorkers support our plans and investment, 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 it does not intend to reopen the search for what it calls HQ2 at this time. But it will proceed with previously announced plans to make Northern Virginia an alternate headquarters location.
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Elected leaders in Virginia quickly passed an incentive package to bring Amazon to the Crystal City neighborhood of Arlington. But the proposed facility in the Queens borough of New York City hit political roadblocks.
Critics Of Amazon Headquarters
Amazon faced intense opposition from local politicians and advocacy groups. Critics of the project were opposed to the large subsidies offered to Amazon. They also warned of looming rent hikes and displacement that could come with the influx of Amazon workers.
Amazon stock fell 1.1% to close at 1,622.65 on the stock market today.
Amazon first announced in September 2017 that it was searching for a second headquarters. The e-commerce giant said HQ2 would create tens of thousands of jobs and tens of billions of dollars in additional investment for the city that wins the bidding process. Amazon said that HQ2 would be a complete headquarters, not a satellite office.
There are currently more than 5,000 Amazon employees in Brooklyn, Manhattan and Staten Island, the company says.
https://www.investors.com/news/technology/amazon-headquarters-new-york-canceled/