Amazon is officially pulling out of its plan to build a second headquarters (aka HQ2) in New York. Reports suggested last week the company was having doubts about the project in Long Island City, Queens, following stern opposition from residents and lawmakers.
“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,” the company said in a statement. “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.”
After a lengthy search for a second headquarters to augment its Seattle base, Amazon revealed in November it would split HQ2 between Long Island City and Arlington, Virginia, and would set up an operations center in Nashville. It was set to receive $3 billion in city and state subsidies for the New York base, and said the campus would create more than 25,000 jobs.
For the time being, Amazon doesn’t plan to “re-open the HQ2 search” and will continue to expand existing offices and tech hubs, grow its existing 5,000+ workforce in New York City and maintain focus on the Arlington and Nashville facilities. Officials in both Virginia and Tennessee have rubber stamped incentives and infrastructure packages for Amazon’s forthcoming offices there.