Amazon.com has embraced US financial and political capitals for massive new offices on Tuesday, branching from its Seattle home base and planning to create more than 25,000 jobs in New York City and the area outside Washington, DC An online retailer plans to invest $ 5 billion on two New developments in Long Island City and Arlington, Virginia, and expects to receive more than $ 2 billion in tax credits and incentives with plans to ask for more.
The award, which Amazon calls HQ2, attracted hundreds of bids from North America in an annual bidding war that was widely advertised for the company. Amazon ended the frenzy by dividing the loot between the two strongest cities on the East Coast of the United States and offering a 5,000-person comfort award in downtown Nashville, Tennessee, focused on technology and management for retail operations.
Lozers said they learned from the process, while the winners said it was expensive but worthwhile.
"Either you create jobs or you lose jobs," New York Governor Andrew Cuomo said at a press conference on Tuesday.
With more than 610,000 employees worldwide, Amazon is already one of the largest employers in the United States and the third most expensive company in the world, behind Apple and Microsoft Corp.
However, it faces fierce competition for the talent of Google's Google alphabet and other companies working to build new technologies in the cloud. These rivals routinely offer free food and benefits in sunny California, which many see as a better painting than Amazon's relative thrift in the Seattle rain. Google also has a growing footprint in New York City.
Already marketed in the New York quarter of Queens, Amazon talked about the Long Island City breweries, coastal parks and easy access. The rent there is usually lower than in Midtown Manhattan, just across the East River. The former industrial zone also has a clock to count the hours until the end of the first term of President Donald Trump in his position.
The choice of Arlington, Virginia just across the Potomac River from downtown Washington, can provide Amazon with greater political influence in the US capital, where it has one of the city's largest lobby stores, and close to the Pentagon could also help Amazon win a computing contract. A $ 10 billion cloud from the US Department of Defense, said Michael Patcher, an analyst at Wedbush Securities.
The owner of the Washington Post, who wrote critical articles about Trump, was the president of Amazon.com and the richest in the world, and Bezos's companies were a frequent destination for the president.
Amazon's choice overtook the center of the United States, where many cities hoped to boost the economy and offer new jobs. The company already had a large workforce of companies in Washington and New York.
"My heart is broken today," said Dallas Mayor Mike Rawlings.
At the start of its search last year, Amazon said it was looking for a business-friendly environment. The company has announced that it will receive performance-based incentives of $ 1.525 billion from New York City, including an average of $ 48,000 for each job it creates.
It can also seek other tax incentives, such as New York's relocation and employment assistance program that offers potential tax breaks worth $ 900 million over 12 years. What the advantage of the company was in fact not clear.
In Virginia, Amazon will receive performance-based incentives of $ 573 million, including an average of $ 22,000 for each job it creates.
These rewards come from the $ 1.6 billion in subsidies Amazon has received throughout the United States since 2000, according to a database from Joyce's first watchdog, Joyce First.
Amazon says it has invested $ 160 billion in the country since 2010 and that the new offices will generate more than $ 14 billion in additional tax revenues to New York, Virginia and Tennessee over the next two decades.
It expects an average wage of more than $ 150,000 for employees in each new office.
The housing crisis
Amazon's emphasis on new jobs, with high wages, gained publicity when faced with criticism of low wages in sprawling warehouses.
The company received media attention worth $ 148 million over the English-language press in the two months following the launch of its searches last September, according to MediaQuant Inc.
Amazon received 238 offers and New York and Virginia put in 18 more candidates from a brief list of January, which included Los Angeles and Chicago.
New Jersey made headlines early in the competition by offering $ 7 billion in potential credits against the state and city tax if Amazon is located in Newark and adheres to recruitment commitments.
Others with less money to offer took a more creative approach: the Mayor of Stonecrest's Atlanta suburb, Jason Larry, said he would set up a new city from an industrial land called Amazon and name Bezos Mayor for life.
In evaluating the possibilities, Amazon examined the quality of schools, met with supervisors to discuss education in science and mathematics. Amazon also wanted landing helicopters and cushions for the new sites, documents released on Tuesday show.
The company has been forced to navigate community issues on its municipal campus and more than 45,000 people in Seattle. Affordable housing crisis has prompted the city council to adopt a head tax on business in May, which Amazon assisted and overturned in the next election city council.
Some critics have pushed greater transparency from cities and countries in the bidding process, and warned that the benefits of hosting a massive Amazon office may not offset the taxpayer's incentives and other costs.
"Our subway is disintegrating, our children are missing school seats, and too many of our neighbors are not receiving adequate medical care," said New York city councilor Michael Jannaris and city council member Jimmy van Bremer. "It is unthinkable that we would sign a $ 3 billion Amazon protest against these challenges."
Amazon shares closed 0.3% at $ 1631.17, giving the company a market value of nearly $ 800 billion.