Economy

U.S. cities offered billions in tax cuts to lure Amazon

U.S. cities offered billions in tax cuts to lure Amazon

The online retailer has whittled down over 230 proposals, and made a decision to split its second North American headquarters over two sites, the Wall Street Journal reported overnight, citing unnamed sources.

Each location will get 25,000 jobs with six-figure salaries.

NY is the nation's financial and media powerhouse and has been working to attract technology companies. "I think the NY taxpayer got a great deal". Here are four areas to watch, according to economists and economic development experts.

According to an article in the Washington Business Journal, National Landing is the new moniker for the area including parts of Crystal City, Pentagon City, and other areas of Arlington that will be the site of the new Amazon headquarters.

Stonecrest in Georgia, offered to rename some of its land to "the city of Amazon".

Amazon had received more than 200 proposals from across North America vying for a home base in addition to its Seattle headquarters. We are not renaming Pentagon City.

Although it wouldn't qualify as a "headquarters", Nashville won 5,000 jobs, with Tennessee kicking in $102 million in tax incentives including a job subsidy worth $13,000 per head. Now, they're banking on its presence to create enough demand to benefit some of its graduates. The company had originally said it would spend more than $5bn and add up to 50,000 workers at one location. Pursuit will operate a job-training center at the site, the organization said.

"We understand the needs of our community and the barriers they face in accessing these growing opportunities in the tech industry", said Hsu.

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So, what does that mean for Long Island City and Crystal City? "We are proud to have a partner in Amazon that shares that vision". Following are some of the perks Amazon says it will get, along with the perks for the cities.

The outcome "suggests that there were only two places they could go". "No question, there will be pressure on these neighborhoods", Eric Gertler, who sits on the board of New York's chief economic development agency, told CBSN.

Without significant investment in new affordable housing, low-income tenants could be pushed out as landlords woo the higher-income newcomers. In different cities, Amazon has agreed to different things: to donate space for an incubator, space for a primary or intermediary public school, and to invest in infrastructure improvements. The housing market will be one aspect to watch as Amazon employees and executives start exercising the option to move to NY or Virginia, Bishop recently told KIRO Radio.

Amazon's payouts are dependent on the tech behemoth delivering on its promise of however many jobs, as well as its investments in local infrastructure.

Dozens of luxury high-rise buildings, suitable for senior Amazon executives, had been in the planning well before the company came on the scene, said Jonathan Miller, CEO of the real-estate firm Miller Samuel.

Many New York politicians share this skepticism, despite their governor's claim Tuesday that the deal ultimately "costs us nothing, nada, niente - we make money doing this".

"Of course Jersey City would benefit if it's in NY but I still feel this entire Amazon process was a big joke just to end up exactly where everyone guessed at the start", Jersey City Mayor Steven Fulop tweeted the day before the deal was announced.