Amazon Cancels NY HQ2: What That Means For Crystal City (ICYMI)

Editor's note: This article was originally published earlier this week.

It was a big surprise when Amazon suddenly announced that it would split its HQ2 between Crystal City and New York. And it was an even bigger surprise Thursday when the online retail giant announced it was abandoning the New York project. So what does that mean for Crystal City?

Ultimately, nothing -- at least that's what local officials are saying. The 25,000 jobs that were meant for Long Island City are not shifting back to Crystal City for a total of 50,000. Instead, it will be business as usual, the Arlington County Board said in a statement.

“After speaking with an Amazon representative earlier today, we have confirmed that we are moving forward as planned with Amazon’s upcoming headquarters in Arlington – nothing has changed," Arlington County Board Chair Christian Dorsey said in the statement. “Our current schedule is for the County Board to consider the performance incentive agreement in March, which includes 25,000 new jobs and 4 million square feet of office space. Arlington, and the entire region, are still honored that Amazon recognized this region as a top area for businesses and workforce talent and selected us as a site for its headquarters expansion.”

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Amazon abandoned plans for New York after encountering heavy opposition from local politicians who questioned why the city was handing over $3 billion in incentives to one of the richest companies in the world. Arlington, by contrast, is paying out $819 million in incentives.

Northern Virginia was one of 20 areas on the e-commerce giant's short list when it was released. But experts had long focused specifically on Crystal City as a likely landing spot due to its proximity to Reagan National Airport, its highly educated and diverse workforce, the fact that most of it is owned by one developer (JBG), and other factors. The fact that Virginia is considered a business-friendly state reportedly also weighed into the decision.

There were 20 finalists, including Chicago, New York, Atlanta, and other major cities, and many have reportedly offered incentives to Amazon to move there. It is a highly sought after project because Amazon claims it would include $5 billion in investment and 50,000 high-paying jobs.

There were other reasons to suspect Crystal City was at the top of the heap. Jeff Bezos already owns the area's newspaper, the Washington Post, as well as D.C.'s largest mansion, and it makes sense he would want to have a significant presence in stone's throw of a Congress that could look to target his company's labor practices, for example.

The D.C. area had three spots on Amazon's shortlist of 20 finalists: Northern Virginia, D.C, and Montgomery County, Maryland, but Northern Virginia had long been seen as the favorite.

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