Earlier this week, Amazon threatened to take their ball and go home if elected officials and activists didn’t play by their rules. On Thursday, the retail giant came through on its promise.
This morning, Amazon announced that it would pull out of the agreement to construct a new headquarters in Long Island City, Queens. Initially announced with New York City Mayor Bill de Blasio and New York State Gov. Andrew Cuomo’s approval, the retail giant citing opposition from elected officials, residents and activists over proposed tax subsides and other breaks given to Amazon and its CEO Jeff Bezos.
“After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens,” read Amazon’s statement. “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.
“We are disappointed to have reached this conclusion—we love New York, its incomparable dynamism, people, and culture—and particularly the community of Long Island City, where we have gotten to know so many optimistic, forward-leaning community leaders, small business owners, and residents,” continued Amazon’s statement. “There are currently over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams.”
Amazon’s spokesperson said they’ll proceed with plans to construct offices in Nashville and Northern Virginia.
New York State Gov. Andrew Cuomo blamed the State Senate for Amazon’s hesitancy and pinned it on local opposition in Queens.
“First of all, I’ve never done a major project where there is not some local opposition. It does not happen,” said Cuomo. “Every project has local opposition. We built a new Tappan Zee Bridge—everybody was opposed until the bridge is done. You do a new housing complex, everybody’s opposed until it’s done. The Long Island Rail Road, putting in new stations, fixing stations, I can’t tell you the level of opposition. People just oppose change.”
Chelsea Connor, Director of Communications for the Retail, Wholesale and Department Store Union (RWDSU), said if Amazon wouldn’t recognize their requests and grievances, they should leave.
“Rather than addressing the legitimate concerns that have been raised by many New Yorkers Amazon says you do it our way or not at all, we will not even consider the concerns of New Yorkers – that’s not what a responsible business would do,” stated Connor.
Amazon, Cuomo and New York City Mayor Bill de Blasio agreed to the online retail giant constructing a 4 million square foot commercial space along the LIC waterfront. While waiting for the construction of a new space, Amazon would take over a 500,000 square foot space at One Court Square. The deal would allegedly create 1,300 direct construction jobs each year through 2033, fill at least 25,000 jobs by 2029 and up to 40,000 by 2034. Amazon would also receive a $3 billion tax break from the city. Amazon still hadn’t leased or purchased an office in the LIC area yet.
The mayor expressed disappointment with Amazon pulling out of the deal, but noted that other companies still see what New York has to offer and he’ll welcome them with open arms.
“You have to be tough to make it in New York City,” stated de Blasio. “We gave Amazon the opportunity to be a good neighbor and do business in the greatest city in the world. Instead of working with the community, Amazon threw away that opportunity. We have the best talent in the world and every day we are growing a stronger and fairer economy for everyone.
“If Amazon can’t recognize what that’s worth, its competitors will,” concluded de Blasio.
When the news first surfaced that Amazon was reconsidering its deal, other elected officials have already opened their proverbial arms to Amazon. On Twitter, New York City Council Member Joe Borelli said he hoped Amazon CEO Jeff Bezos would consider Staten Island for a new location. “Moreover, land and rents are significantly cheaper here, so we may not even need all the tax incentives,” he said.
Reports also had New Jersey State Gov. Phil Murphy and Connecticut Gov. Ned Lamont in talks with Amazon as the company weighs its options for a new headquarters location.
“Upon the indication—days ago—that there may be trouble with Amazon’s proposed deal with [New York], we mobilized our new Partnership to Advance the Connecticut of Tomorrow—and more specifically, [Connecticut Economic Resource Center] co-chairs Indra Nooyi and Jim Smith, to construct a path forward,” Lamont said on Twitter last Friday. “The state has already made an outreach to Amazon through its in-state representation, and we are looking forward to expanding the dialogue.”
Newark officials, specifically, offered Amazon a $7 billion package of incentives. Cuomo said that there is a reason other cities and states want Amazon’s business.
“Newark offered $7 billion for Amazon to go to Newark,” said Cuomo earlier this week. “They could have gone to Newark, they would have had the exact same workforce, et cetera. We incentivized Amazon to come, as we incentivize every big business to come. You know what the incentive package was? We get $27 billion in revenue, they get $3 billion back. We get 27, they get $3 billion back. I would do that all day long.”
But those incentives are the problem for many, including New York State Assembly Member Ron Kim. Kim objects to elected officials giving money and land away to major corporations instead of working to help people.
“The proposed taxpayer giveaway package is especially egregious and is an example of politicians putting the needs of a massive corporation over the people,” stated Kim. “Something is desperately wrong when elected officials agree to give billions in taxpayer dollars to one of the largest multinational companies in the world while affordable housing disappears, schools remain underfunded and the subways crumble.”
Queens Borough President Melinda Katz said all Amazon had to do was show more transparency in details of their deal and what their intentions really were.
“We all want jobs to come to Queens, and Amazon used the promise of job creation to extract major concessions for this project,” stated Katz. “But after last month’s City Council hearing, it became increasingly clear that they had no intentions of being good neighbors and committing to the required negotiations. They rejected our values of supporting working people and were unwilling to work with our local communities toward a mutually beneficial resolution.”
But some saw the recent news as a loss for New York.
Despite the vocal opposition to Amazon, a recent poll by the Siena Research Institute found that 56 percent of voters in New York State support the Amazon HQ2 project. When told of the jobs and incentives, 58 percent of New York City residents supported Amazon HQ2. This coincides with a December poll from Quinnipiac University that showed that 57 percent of New York City residents approved of the Amazon deal despite having reservations about the incentives and tax breaks Amazon would receive. Quinnipiac’s poll also showed the divide in who supported and opposed the Amazon deal based on borough and race. According to the poll, 52 percent of Blacks and 56 percent of Hispanics supported the deal while 51 percent of Whites opposed it. The Bronx and Queens supported the deal (at 54 percent and 55 percent respectively) while Manhattan and Brooklyn opposed it (at 52 percent and 46 percent respectively).
The non-profit organization A Better New York, made up of businesses, labor and other non-profits, supports Amazon HQ2. A leader of the organization said that the jobs are too good for New York City to pass up.
“A recent ABNY study found that incomes related to New York City’s tech ecosystem are 49 percent higher than other sectors and 45 percent higher for New Yorkers without bachelor’s degrees,” said ABNY Executive Director Angela Sung-Pinsky. “That’s why we need to work together and recognize that the HQ2 is an ideal fit for Queens. Amazon gains access to our top-notch and diverse talent, as well as all the culture, entertainment and industries our city provides, and we gain economic opportunity that can benefit all New Yorkers.”
Another organization, Queensbridge Alliance (which includes ABNY), held a news conference on Monday to express support for the Amazon deal. Amazon HQ2 advisory committee member Bishop Mitchell Taylor said that the opposition to Amazon in Queens is coming from people who don’t call Queens home.
“We need to speak to them and not allow people coming from outside of our community to speak for us,” said Taylor during the news conference. “You can’t speak for us.”
A spokesperson for labor union 32BJ, who had a deal with Amazon involving building service workers, said that New York’s missed out now that Amazon has called the deal off.
“The news that Amazon has decided to cancel its plans to build its second headquarters in New York City is a disappointing development for working people in our city,” stated 32BJ’s spokesperson. “This is a lost opportunity for Queens and New York on many levels. Of course, the loss of 25,000 direct jobs and many more indirect ones as well as the billions in revenue that the project was expected to bring into our city is unfortunate.
“For labor however, this is also a missed opportunity to engage one of the largest companies in the world and to create a pathway to union representation for one of the largest groups of predominantly non-union workers in our country,” concluded 32BJ’s spokesperson.
New York City Council Member Erich and lone Republican Public Advocate Candidate Eric Ulrich said that Thursday’s news is the result of the vocal minority scaring Bezos away.
“It never ceases to amaze me how the loud voices of a few, could destroy the chance at a better life for so many,” stated Ulrich. “Amazon had big plans in store for the borough of Queens, and we blew it! They were going to invest in our future, hire locally, contribute to the community, and make the greatest city in the world even greater. I doubt the NIMBYS have another company willing to create 25,000 good paying jobs. This sets a bad precedent moving forward and will deter other companies from setting up shop in our city.”
Last week’s actions by Amazon officials didn’t help things. During a recent hearing at City Hall, New York City Council Speaker Corey Johnson engaged in a back and forth with Amazon Vice President Brian Huseman that ended with Huseman admitting they wouldn’t let their workers organize. Johnson also pointed out that Amazon has a deal with building service workers represented by SEIU 32BJ, but they wouldn’t let other workers try to unionize.
“New Yorkers won’t be fooled,” stated New York Communities for Change Executive Director Jonathan Westin. “They are rejecting a $3 billion giveaway to a multi-million dollar company that will only displace low-income communities and hardworking residents. We are well aware of the damage Amazon has done in other communities and do not want that repeated in New York. In Seattle, where homelessness has gone out control, they have refused to pay their fair share of taxes and low income residents have been left without the promised jobs.”
RWDSU President Stuart Appelbaum didn’t mince words when speaking about Amazon.
“With their long history of abusing workers, partnering with ICE to aid their persecution of immigrant communities, and contributing to gentrification and a major housing crisis in their hometown of Seattle, New Yorkers are right to raise their concerns and opposition to this plan,” stated Appelbaum. “New Yorkers won’t be bullied by Jeff Bezos, and if Amazon is unwilling to respect workers and communities they will never be welcome in New York City.”