- Amazon has officially announced that it will split its long-awaited second headquarters, known as HQ2, between two cities:Arlington, Virginia, and Queens, New York.
- Arlington was long touted as a frontrunner in Amazon’s contest.
- In its proposal, Arlington promised the tech giant everything from a helipad up to $US550 million in cash grants.
The newly branded National Landing area – defined by Arlington County as encompassing parts of the Pentagon City and Crystal City neighbourhoods in Arlington and the Potomac Yard neighbourhood in Alexandria – will be splitting HQ2 with the Long Island City neighbourhood in New York City, while a new location in downtown Nashville, Tennessee, will function as an operations hub, according to Amazon.
Arlington in particular was long viewed as a frontrunner in the melee among North American localities.
So what did Virginia offer Amazon to seal the deal?
Here are some of the biggest takeaways from the agreement:
- Amazon guaranteed that it would bring in 25,000 new jobs with an average wage above $US150,000.
- As part of a “phase two” of the HQ2 rollout, the tech giant said it would create an additional 12,850 jobs.
- In return, Virginia agreed to bestow a cash grant of up to $US550 million – $US22,000 for each new job – to Amazon over the next 12 years.
- The cash is off the table if Amazon doesn’t deliver on its promise of mass job creation.
- Arlington County is also prepared to throw some serious cash Amazon’s way – $US23 million over 15 years – as part of a grant based on the “Transient Occupancy Tax” levied on hotel rooms.
- That money depends on Amazon bringing in “business-related travellers who will stay in Arlington.”
- Arlington County has also pledged to help the tech giant secure approval to build a helipad.
- Amazon has said Arlington will benefit from “4 million square feet of energy-efficient office space with the opportunity to expand to 8 million square feet.”
- Amazon estimated that Arlington would accrue an incremental tax revenue of $US3.2 billion over the next 20 years as a result of HQ2.
- Virginia plans to work to make the area more accessible for an influx of new Amazon employees by putting $US195 million toward infrastructure projects like the Crystal City and Potomac Yards Metro stations, pedestrian crossings along Route 1, and a pedestrian bridge between National Landing and Ronald Reagan Washington National Airport.
Read more about Amazon’s HQ2 project:
- Amazon officially announces its HQ2 will be split between New York and Virginia
- Amazon finally explains why it’s cutting its second headquarters in half
- Amazon gained a huge perk from its HQ2 contest that’s worth far more than any tax break
- New York City has lured Amazon with more than $US1.5 billion in incentives – here’s what else they agreed to
- We walked around Long Island City, the New York neighbourhood where Amazon is planning to bring HQ2, and saw why it’d be appealing to the e-commerce giant