Amazon Reconsidering NYC Headquarters After Backlash: Report

LONG ISLAND CITY, QUEENS — Executives at Amazon have discussed pulling out of a deal to bring a new headquarters to New York City, according to a report.

Amazon has soured on the prospects of a campus in Long Island City, Queens following intense backlash from local politicians, the Washington Post first reported. Two sources "familiar with the company's thinking" spoke to the Post with anonymity in order to "speak candidly about the company’s perspective."

“The question is whether it’s worth it if the politicians in New York don’t want the project,” one person familiar with Amazon’s plans told the Post.

While addressing a Long Island business association Friday, Governor Andrew Cuomo said he is determined to make the Amazon deal a reality and rebuked the State Senate's opposition.

"I understand politics very well, but I've never seen a more absurd situation where political pandering and obvious pandering so defeats a bonafide economic development project," Cuomo said to applause.

Amazon said in a statement Friday: "We’re focused on engaging with our new neighbors – small business owners, educators, and community leaders. Whether it’s building a pipeline of local jobs through workforce training or funding computer science classes for thousands of New York City students, we are working hard to demonstrate what kind of neighbor we will be.”

Pulling out may not be difficult for Amazon, according to the report. Amazon hasn't struck any land deals in Long Island City, which means the company stands to lose little if it ditches New York. In Virginia, the chosen site for the retail giant's other HQ2, officials quickly passed an incentive package, the Post reported. But final approval from New York state isn't expected until 2020.

"When a corporation is anti-union, pro-ICE and seeks billions in corporate welfare, we must fight back," Councilman Jimmy Van Bramer, who represents Long Island City, said in a statement. "It’s not over, but I’m proud of the values we fought for.”

"Can everyday people come together and effectively organize against creeping overreach of one of the world's biggest corporations? Yes, they can." Congresswoman Alexandria Ocasio-Cortez, who represents Queens, tweeted in response to the Post's report.

But one person familiar with the company's thinking told The New York Times that the retail giant has no plans to abandon its Long Island City proposal. "I think that's a bit far in my opinion," the person said.

Is Amazon thinking of abandoning New York?

"I think that's a bit far in my opinion," said a person familiar with the company's thinking. "No plans."
— J. David Goodman (@jdavidgoodman) February" class="redactor-linkify-object">https://twitter.com/jdavidgood... 8, 2019

PrimedOut NYC, a grassroots group that opposes the Amazon deal, called the report a "fake out" on Twitter. "We will continue to organize and push back even more," the group wrote.

New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio announced in November that the company will bring 25,000 jobs to its new Long Island City campus. The company will get nearly $3 billion in tax breaks and other incentives as part of a deal between Amazon and the government.

Critics of the plan immediately zeroed in on the tax breaks Amazon will receive as part of the deal. Opponents argued that the $3 billion would be better spent on issues such as improving public schools, fixing the subways and funding repairs at public housing developments.

State Sen. Michael Gianaris, a vocal critic of the deal, was recently chosen to sit on the Public Authorities Control Board, which will be voting on Amazon's development plans for the Queens campus. Any member on the board has the power to block developments proposed by Empire State Development, which is spearheading the Amazon deal.

Officials in favor of the deal called Amazon's project the biggest economic development initiative in city and state history, as it is expected to create at least 25,000 high-paying jobs and generate $27.5 billion in tax revenue for the city and state over 25 years.

Amazon also pledged to invest about $2.5 billion into the Long Island City neighborhood through initiatives such as a new public school, a 3.5-acre waterfront esplanade and park and services such as job fairs for residents of the nearby Queensbridge Houses public housing development.

Sixty percent of Queens voters said they support Amazon coming to Long Island City, according to a Quinnipiac University poll in December. Only 26 percent of Queens voters were opposed to the plan. The numbers in support of the $3 million incentive package dipped to 55 percent among Queens voters, with 39 percent opposing the package.

Patch reporter Maya Kaufman contributed to this report.

Read the full Washington Post report here.

(Lead image: Officials and advocates, including Sen. Michael Gianaris (center right), rallied on Nov. 14 against Amazon's plans to open a new headquarters in Long Island City. Photo by Noah Manskar/Patch)