Amazon has informed New York that it is pulling out of its plans to build a corporate campus in Long Island City in the borough of Queens, N.Y., a project that promised billions of dollars in investment and at least 25,000 high-paying jobs.
The tech giant faced considerable opposition to its plans, specifically about the nearly $3 billion in government incentives it would have received, but also about political and land-use concessions the city and state had agreed to make in order to lure Amazon, whose search for its “HQ2” location that attracted bids form 238 cities.
Under the plan it is now abandoning, Amazon, over a 15-year period, could have occupied as much as eight million sf of office space that could have accommodated up to 40,000 workers, according to the New York Times.
Amazon’s decision is seen as a major defeat for New York Gov. Andrew Cuomo and New York City Mayor Bill DeBlasio, who championed the effort to forge a deal with Amazon.
In its prepared statement announcing its decision Amazon thanked Cuomo and DeBlasio for their efforts, but also stated that “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.”
It wasn’t just elected officials, though, who opposed Amazon’s plan. Typical of many of the responses posted on the Times’ website, following the news of Amazon’s decision, was this from one reader, identified as AL O:
So, you bypass the democratic process and cut a backroom deal that has you taking billions in public money for nothing more than the promise of jobs you may create, and then you're “surprised” when the local people whose rights you bypassed object to the terms of that deal? So, rather than standing your ground and explaining yourself, or perhaps renegotiating the deal a bit to make your neighbors around your proposed facility somewhat happier, you just panic and take your ball and go home crying? It doesn't sound like Amazon was ready for New York.
However, Kathryn Wylde, CEO of the Partnership for New York City, thought that the negative reaction that Amazon received upon its choice of Long Island City, and the company’s subsequent withdrawal from that decision, sends “a pretty bad message to job creators of the city and the world.”
Amazon says it has no immediate plans to reopen its HQ2 search. It will continue with its plans to build a corporate campus in Northern Virginia and other buildings in Nashville.
Related Stories
| Jul 30, 2014
Restaurants, farmers' markets high on urban dwellers' wish list: Sasaki report
Urban dwellers love food-related resources, public spaces, and historic structures—but really hate traffic, lack of parking, and poor public transportation.
| Jul 30, 2014
Nonresidential building activity on the rise for 2015: AIA Forecast
Semiannual Consensus Construction Forecast predicts 4.9% increase this year, 8% next year, with offices and retail facilities leading the charge.
| Jul 29, 2014
Studio Gang Architects, MAD to design George Lucas' museum in Chicago
Star Wars director George Lucas selected Chicago-based Studio Gang Architects and Beijing firm MAD to design his proposed art museum on Chicago’s lakefront.
| Jul 29, 2014
AECOM's buying spree continues: Deal to acquire Hunt Construction Group in the works
The acquisition comes just two weeks after AECOM's $6 billion deal to acquire rival engineering and construction company URS Corp.
| Jul 29, 2014
MADGI hires David Stuart, AIA, as Studio Director in New York City
Stuart will support the firm's $375 million multifamily residential design studio.
| Jul 29, 2014
Best practices for public-private partnerships: Free AIAI guide
Resource explores P3 best practices, including legislation and procurement methods.
| Jul 29, 2014
Blood center uses architecture to encourage blood donation [slideshow]
Designed by FAAB Architektura, the project's aesthetic was guided by its function. The color scheme, facade panel glossiness, and the irregularly elevated leitmotif were intentionally designed to evoke the "richness" of blood, according to the architects.
| Jul 28, 2014
Reconstruction market benefits from improving economy, new technology [2014 Giants 300 Report]
Following years of fairly lackluster demand for commercial property remodeling, reconstruction revenue is improving, according to the 2014 Giants 300 report.
| Jul 28, 2014
Reconstruction Sector Construction Firms [2014 Giants 300 Report]
Structure Tone, Turner, and Gilbane top Building Design+Construction's 2014 ranking of the largest reconstruction contractor and construction management firms in the U.S.
| Jul 28, 2014
Reconstruction Sector Engineering Firms [2014 Giants 300 Report]
Jacobs, URS, and Wiss, Janney, Elstner top Building Design+Construction's 2014 ranking of the largest reconstruction engineering and engineering/architecture firms in the U.S.