Amazon tabs N.Y., Virginia for 2 HQs, reports say

Final decision on prospective cities due by end of the year

Amazon.com Inc. will separate its proposed second headquarters into two locations, and is close to deals to put major new offices in Long Island City, N.Y., and the Crystal City area of Arlington, Va., according to the New York Times, which cited unidentified people familiar with the matter.

The e-commerce giant last year announced plans to invest $5 billion (U.S.) in a second HQ and hire as many as 50,000 people, setting off a frenzy of interest from cities in the U.S. and Canada.

It has announced 20 finalists and is scheduled to make a final decision by the end of the year.

The company will choose two locations instead of one, the Wall Street Journal reported earlier Monday.

Amazon has decided that one location lacked sufficient technology talent, the Journal said.

The New York Times reported those sites will be Long Island City, in the borough of Queens across the East River from Manhattan, and the Crystal City neighbourhood of Arlington, Va., which is across the Potomac River from Washington.

Toronto, the only Canadian city included on Amazon’s short list of locations in January, had been considered a top contender. Mayor John Tory had been a vocal supporter of the bid. Amazon may want to avoid criticism that its arrival in a new town overwhelms the area.

The company has fuelled an economic boom in its hometown of Seattle, where it is also often blamed for traffic problems and skyrocketing housing costs that squeeze some residents out of the city.

The Washington Post reported on Saturday that Amazon was in advanced discussions to locate its second headquarters in Crystal City.

An Amazon spokesperson declined to comment.

Crystal City is an urban neighbourhood that features a concentration of highrise offices, hotels and residential buildings.

Some contenders are close to each other and draw from the same labour pools.

New York City and Newark, N.J., are among the finalists, as are Washington, Northern Virginia and Montgomery County, Md. Amazon could choose one metropolitan region and still have to negotiate with multiple states and local governments for tax incentives.