Amazon in NYC? Ha!
IT will be more Amazin’ than the 1969 Mets if Amazon picks New York City for its huge new corporate campus. And two men would share the primary blame for Jeff Bezos’ choice of another town: Mayor de Blasio and Gov. Cuomo.
The damage was done long before de Blasio incomprehensibly trashed Amazon this week for taking business away from local stores, at the same time the city is theoretically trying to woo the Seattle-based giant to create a giant headquarters here.
A visionary, long-term entrepreneur like Bezos surely can see the rot beneath the magic of our record-low crime rate, revitalized neighborhoods and unparalleled cultural attractions.
The problem isn’t that the city won’t offer big tax breaks — a strategy on which reasonable people can disagree. (New Jersey has offered $7 billion in tax incentives over time). The Big Apple’s Achilles’ heels are its rotten-to-the-core infrastructure and dysfunctional and dangerous public schools.
Those liabilities wouldn’t be dealbreakers for a headquarters relocation that’s more symbolic than economically meaningful, such as Aetna’s move here, which involves a mere 250 jobs. And Amazon has already established a beachhead here, with plans to open offices on Manhattan’s West Side and a distribution center on Staten Island — great news all around.
But the Seattle-based giant’s goal to create a “second headquarters” with 50,000 new jobs is “of a different order of magnitude,” warns CBRE’s Stephen B. Siegel, who has been a prime mover in corporate relocation for decades.
Siegel says, “Although I wish it would happen here, the chances are difficult to impossible” due to the challenge of finding enough land at one location for 8 million square feet of space, which Amazon says it would need beyond 2027. (The city’s pitching the Far West Side, the World Trade Center area, Long Island City in Queens or Brooklyn’s “Tech Triangle,” which includes Downtown Brooklyn, the Navy Yard and Dumbo).
But while the real-estate problem might be solvable, others that are the result of elected officials’ warped ideology, inattention and/ or fecklessness are not.
For starters, generations of declining public education have left the city with a tech-savvy workforce not nearly large enough to fill 50,000 highly specialized new jobs.
Ex-Mayor Michael Bloomberg did what he could to reform the system, but de Blasio has basically turned it over to the teachers union. He’s also tried to kill better-performing charter schools, the only affordable alternative for families who can’t afford private schools.
A company like Amazon depends on having a reliably deep, well-educated and trained local talent pool on tap. But City Hall’s boast that the Big Apple has more people with bachelor’s degrees than do Los Angeles, San Francisco, Philadelphia, Washington, DC, and Boston is seriously misleading.
The more telling metric is one reported by Center for the Urban Future policy director Matt A. V. Chaban in Gotham Gazette. Chaban points out that the percentage of Big Apple residents with at least a bachelor’s is much lower than in most cities vying for Amazon’s business — 36 percent for New York, but 45 percent in Denver, 46 percent in Austin and 55 percent in DC.
With many of those 36 percent already holding good tech jobs here, Amazon would need to hire from well beyond the five boroughs. Most will be families with children who’d have to pay fortunes to educate their kids outside the public-school system.
Consider, too: Most Amazon employees would need to get to work by subway. But Cuomo, who controls the MTA, has shown little meaningful interest in arresting the system’s disaster-bound tailspin.
Nor has he shown decisive leadership to kick-start construction of a new Gateway tunnel for Amtrak. It’s desperately needed before a collapse of the existing, inadequate, 100-year-old rail tunnel beneath the Hudson River cripples transportation between the city and New Jersey — where many new Amazon employees would live.
A company considering such a long-term investment as Amazon must look beyond orange skyscraper lighting meant to win its heart. Sadly, as long as politicians like de Blasio and Cuomo are in charge, Bezos is likely to see only fog.