Cities jostle for position as Amazon eyes two new HQs
After a year-long search for a second home, Amazon is now reportedly looking to build offices in two cities instead of one, a surprise move that could still have a major impact on the communities it ultimately selects.
Virginia officials and some state lawmakers were recently briefed by the head of the state’s economic development office that Amazon was considering splitting up its second headquarters, according to a person familiar with the matter.
Officials in Virginia believe there’s a strong likelihood Amazon will pick Crystal City in northern Virginia as one of its sites, but the company has not said anything definitive, according to the person, who was not authorised to speak on the record.
“They’re a real secretive company,” the person said.
One of the other areas the online retail giant is considering is New York’s Long Island City, according to a source familiar with the talks. Across the East River from midtown Manhattan, Long Island City is a longtime industrial and transportation hub that has become a fast-growing neighbourhood of riverfront highrises and redeveloped warehouses, with an enduring industrial foothold and burgeoning arts and tech scenes.
Amazon has been tight-lipped about the process and declined to comment on the latest news.
There’s been intense competition to win over the company, with some throwing around billions of dollars in tax incentives.
Amazon kicked off its hunt for a second headquarters in September 2017, initially receiving 238 proposals before narrowing the list to 20 in January.
New York Governor Andrew Cuomo met two weeks ago with Amazon officials in his New York City offices, according to the source. Cuomo offered to travel to Amazon’s Seattle hometown to continue talks, the source said.
This week Cuomo told reporters that Amazon is looking at Long Island City, but didn’t say if it was a finalist. He said winning over Amazon would give an economic boost to the entire state, and joked that he was willing to change his name to “Amazon Cuomo” to lure the company.
The Wall Street Journal, which first reported on the possible plan to split the headquarters between two cities, said Dallas is also still a contender.
A spokesman for the Dallas Regional Chamber declined to comment.
Long Island City and Crystal City would meet Amazon’s requirements for a new locale.
Both are near metropolitan areas with more than a million people, have nearby international airports, direct access to mass transit and have room for the company to expand.
Selecting those areas would bring more jobs to places that already have plenty.
Jed Kolko, the chief economist at job site Indeed, said that choosing New York and the DC area would “be a much less radical move than many imagined” and another example of “rich places getting richer”.
The company had originally promised to bring 50,000 new highpaying jobs to one location, which founder and CEO Jeff Bezos said would be “a full equal” to its Seattle home base.
Amazon has said it could spend more than US$5 billion on the new headquarters over the next 17 years, about matching the size of its Seattle HQ, which has 33 buildings, 23 restaurants and 40,000 employees.
The company already employs 600,000. That’s expected to increase as it builds more warehouses across the country to keep up with online orders.
Amazon recently announced that it would pay all its workers at least US$15 an hour, but the employees at its second headquarters will be paid a lot more, an average of more than US$100,000 a year.
Earlier this month, Bezos said during an on-stage interview in New York that the final decision will come down to intuition.
“You immerse yourself in that data, but then you make that decision with your heart,” he said.