Amazon Pulls Out of Planned New York City Headquarters

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Amazon Pulls Out of Planned New York City HeadquartersAmazon Pulls Out of Planned New York City HeadquartersAnti-Amazon protesters before a New York City Council hearing in January. The deal to build a sprawling Amazon campus in Queens had also run into opposition from some local lawmakers.CreditHiroko Masuike/The New York TimesImageAnti-Amazon protesters before a New York City Council hearing in January. The deal to build a sprawling Amazon campus in Queens had also run into opposition from some local lawmakers.CreditCreditHiroko Masuike/The New York TimesAmazon on Thursday canceled its plans to build an expansive corporate campus in New York City after facing an unexpectedly fierce backlash from some lawmakers and union leaders, who contended that a tech giant did not deserve nearly $3 billion in government incentives.The company, as part of its extensive search for a new headquarters, had chosen Long Island City, Queens, as one of two winning sites, saying that it would create more than 25,000 jobs in the city.But the agreement to lure Amazon stirred an intense debate about the use of public subsidies to entice wealthy companies, the rising cost of living in rapidly gentrifying neighborhoods and the city’s very identity.“A number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward,’’ Amazon in a statement.The company’s decision is a major blow for Gov. Andrew M. Cuomo and Mayor Bill de Blasio, who had set aside their differences to bring the company to New York.But it was at least a short-term win for insurgent progressive politicians led by Representative Alexandria Ocasio-Cortez, whose upset victory last year happened to occur in the district where Amazon had planned its site. Her win galvanized the party’s left flank, which mobilized against the deal, and on Thursday she seemed to revel in the company’s retreat.As opposition mounted, the governor and the mayor met on Monday in Albany and discussed how to save the deal, according to a person familiar with the conversations but who was not authorized to discuss them.After the meeting, Mr. de Blasio spoke to a senior Amazon executive by phone on Monday and the mayor was told that the company remained committed to coming to New York, the person said. Mr. de Blasio was in the process of connecting with Jeff Bezos, Amazon’s chief executive, the person said. It was unclear if he did.Both the mayor’s the governor’s offices reassured Amazon executives that, despite the vocal criticism, the deal they had negotiated would be approved. But the company appeared upset at even a moderate level of resistance, the person said.To lure Amazon, city and state officials had offered the company one of the largest-ever incentive packages in exchange for a much larger return in jobs and tax revenue.CreditHiroko Masuike/The New York TimesImageTo lure Amazon, city and state officials had offered the company one of the largest-ever incentive packages in exchange for a much larger return in jobs and tax revenue.CreditHiroko Masuike/The New York TimesThe company’s leadership made their decision to pull out of New York on Wednesday evening, according to two people familiar with the decision. They did not inform the governor or the mayor until Thursday morning shortly before posting their announcement.After the decision, Mr. de Blasio seemed to abruptly shift his tone.“We gave Amazon the opportunity to be a good neighbor and do business in the greatest city in the world,’’ Mr. de Blasio said. “Instead of working with the community, Amazon threw away that opportunity. We have the best talent in the world and every day we are growing a stronger and fairer economy for everyone. If Amazon can’t recognize what that’s worth, its competitors will.”As recently as Wednesday, Mr. Cuomo had brokered a meeting between Amazon executives, including Brian Huseman, who had represented the company at the City Council, and union leaders who had been resistant to the deal — including from the Retail, Wholesale and Department Store union and the Teamsters, according to two people briefed on the sit down.The meeting ended without any compromise on the part of Amazon, according to the people. But Stuart Appelbaum, of the retail union, who was part of the meeting, said, “Amazon and the governor and everybody agreed yesterday on a way to move forward.’’ The company, he said, had agreed to keep talking.“It was a productive meeting,’’ Mr. Appelbaum said. “Shame on them. The arrogance of saying ‘do it my way or not at all.’’’Some unions supported the deal, and even those who had been opposed appeared willing to work with Amazon if the company agreed to not actively work against the unionization of their employees in New York.An Amazon representative, during one City Council hearing, pointedly said the company would not agree to such terms.Hector Figueroa, the president of the local 32BJ Service Employees International Union had been criticized for supporting the deal. He called the company’s withdrawal a “lost opportunity” on many levels. “Of course, the loss of 25,000 direct jobs and many more indirect ones, as well as the billions in revenue that the project was expected to bring into our city, is unfortunate,” Mr. Figueroa said in a statement.“For labor, however, this is also a missed opportunity to engage one of the largest companies in the world and to create a pathway to union representation for one of the largest groups of predominantly non-union workers in our country.”Gov. Andrew M. Cuomo, center, and Mayor Bill de Blasio, second from right, had been forcefully defending the deal they negotiated.CreditChang W. Lee/The New York TimesImageGov. Andrew M. Cuomo, center, and Mayor Bill de Blasio, second from right, had been forcefully defending the deal they negotiated.CreditChang W. Lee/The New York Times[What you need to know to start the day: Get New York Today in your inbox.]The company had enjoyed public support in two polls of voters conducted since the deal was announced by Quinnipiac University and Siena College. While the subsidies were less popular, the deal to bring the company, and tens of thousands of jobs, were popular across a variety of groups.In recent days, backers of the deal had begun mobilizing and some could be seen wearing pins in support of Amazon.State Senator Michael Gianaris, a vocal critic who was chosen for a state board with the power to veto the deal, said the decision revealed Amazon’s unwillingness to work with the Queens community it had wanted to join.“Like a petulant child, Amazon insists on getting its way or takes its ball and leaves,” said Mr. Gianaris, a Democrat, whose district includes Long Island City. “The only thing that happened here is that a community that was going to be profoundly affected by their presence started asking questions.’“Even by their own words,’’ he added, pointing to the company’s statement on the pullout, “Amazon admits they will grow their presence in New York without their promised subsidies. So what was all this really about?”Both Mr. Gianaris and Jimmy Van Bramer, a City Councilman who represents Long Island City, had shifted from being proponents to opponents of the deal. Mr. Van Bramer called Amazon’s decision “a victory against unchecked corporate welfare.’’While small protests greeted the company after its initial announcement in November, the first inkling that opposition had taken hold among the city’s Democratic politicians came during a hostile City Council hearing the next month. Protesters filled the seats, unfurled banners and chanted against the company. Not a single council member spoke up in defense of the deal or the company.Company executives fared no better at their second appearance, in January, though supporters, lobbyists and consultants were better prepared. Unions supporting the deal, including the powerful 32BJ S.E.I.U. and the Building and Construction Trades Council of Greater New York, held a rally outside City Hall immediately after one by opponents.Still, the company did not hire a single New Yorker as an employee to represent it in discussions with local groups. Its main representatives traveled by train between Washington and Manhattan. Only one had moved into an apartment to work with community members and foster support.A view of the Pepsi-Cola sign in Long Island City. A campus for as many as 40,000 Amazon workers was planned for the neighborhood.CreditChristopher Lee for The New York TimesImageA view of the Pepsi-Cola sign in Long Island City. A campus for as many as 40,000 Amazon workers was planned for the neighborhood.CreditChristopher Lee for The New York TimesTo attract Amazon, city and state officials offered the company one of the largest-ever incentive packages in exchange for a much larger return in jobs and tax revenue.They agreed to remake plans for the Queens waterfront and move a distribution center for school lunches. They even agreed to give Mr. Bezos access to a helipad.Under the plan, within 15 years the company could occupy as much as eight million square feet of office space, including office buildings for as many as 40,000 workers.But almost as soon as it was announced, the deal was met with resistance, from local elected officials like Mr. Gianaris and progressive groups. Many critics were angered that the deal-making circumvented the normal land-use process and essentially eliminated any veto power by the City Council.The idea of scaling back plans for the New York campus was a subject that had become increasingly discussed among Amazon’s board, according to a person familiar with the board’s deliberations. The meetings between Amazon and Mr. Cuomo and Mr. de Blasio before the company decided to come to New York led executives to believe that there would be greater political support than turned out to be the case.The company had chosen New York as well as a site in Northern Virginia for major expansion. On Thursday, the company said it had no plans to reopen a search for a second location.Amazon still plans to add 25,000 jobs in Northern Virginia, and another 5,000 in Nashville, where it announced plans to build a center for its operations. Now, it will take the 25,000 jobs that would have gone to Queens and spread them out over its 17 tech hubs across the United States and Canada, including Manhattan.Kathryn S. Wylde, the chief executive of the Partnership for New York City, an influential business group, said, “How can anyone be surprised? We competed successfully, made a deal and spent the last three months trashing our new partner.”Ms. Wylde said the reception Amazon had received sent a “pretty bad message to the job creators of the city and the world.”Here is the statement released by Amazon:After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens. For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term. While polls show that 70% of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City.We are disappointed to have reached this conclusion — we love New York, its incomparable dynamism, people, and culture — and particularly the community of Long Island City, where we have gotten to know so many optimistic, forward-leaning community leaders, small business owners, and residents. There are currently over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams.We are deeply grateful to Governor Cuomo, Mayor de Blasio, and their staffs, who so enthusiastically and graciously invited us to build in New York City and supported us during the process. Governor Cuomo and Mayor de Blasio have worked tirelessly on behalf of New Yorkers to encourage local investment and job creation, and we can’t speak positively enough about all their efforts. The steadfast commitment and dedication that these leaders have demonstrated to the communities they represent inspired us from the very beginning and is one of the big reasons our decision was so difficult.We do not intend to re-open the HQ2 search at this time. We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the U.S. and Canada.Thank you again to Governor Cuomo, Mayor de Blasio, and the many other community leaders and residents who welcomed our plans and supported us along the way. We hope to have future chances to collaborate as we continue to build our presence in New York over time.Corey Kilgannon, Patrick McGeehan, William Neuman and Karen Weise contributed reporting. 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