Amazon Nixes NYC Headquarters, But What About Newark?

NEWARK, NJ — It’s official: Amazon has put the kibosh on plans to place one of its multi-billion-dollar new headquarters in New York City. But does that mean Newark is back in the running?

Nope, the retail giant said.

According to a Feb. 14 statement from Amazon, the company “does not intend to reopen the HQ2 search at this time.” Amazon said it will proceed with its new facilities in Arlington, Virginia and Nashville, Tennesee, and will “continue to hire and grow” across its 17 corporate offices and tech hubs in the U.S. and Canada.

• See related article: Amazon Cancels Plan For NYC Headquarters

Despite being one of 20 cities across the U.S. to make the final cut for Amazon’s new headquarters, Newark was officially passed up in November of 2018 when the company announced it would be splitting its $5 billion investment between two sites in the New York City neighborhood of Long Island City and Arlington.

• See related article: Amazon Officially Passes Up Newark, NJ For New Headquarters

But although the chances now seem dim of a mega-headquarters landing in Newark any time soon, the city’s mayor isn’t giving up hope.

On Thursday, Mayor Ras Baraka issued a statement inviting the company to reconsider:

“Given the city and state’s assets—a strong talent pipeline, a diverse tech base, unmatched infrastructure and a highly accessible location – we are well-poised to accommodate Amazon should they want to relocate New York City’s portion of HQ2, in whole or part. Legislation regarding the tax incentives has already been passed, our real estate options are still viable, and the community has been – and will continue to be – engaged. Newark is becoming a national model for what equitable development should look like across the country and we welcome the opportunity to resume conversations with Amazon and provide them an opportunity to be a part of its renaissance.”

New Jersey Governor Phil Murphy also made a play to change the minds of Amazon executives, Bloomberg News reported.

“After learning of the decision to pull out of their chosen location, I contacted Amazon and City of Newark stakeholders directly, continuing a constant dialogue that predates my time as governor,” Murphy told Bloomberg News. “New Jersey is open for business, and now more than ever, Newark is the clear choice as the next presence for Amazon corporate offices. Amazon now has the opportunity to join in Newark’s story of a city on the rise.”

Story continues below video

NEWARK AND AMAZON: TAX BREAKS VERSUS JOBS

Amazon had estimated that the two new headquarters would generate a combined 50,000 jobs, a point that many New Jersey supporters – Republican and Democrat – hammered home during the courting process.

• See related article: 'Bring Amazon HQ To Newark': Gov. Christie, New Jersey Dems Agree

To help woo the company to the Garden State, New Jersey and Newark officials offered Amazon a staggering $7 billion in combined state and city tax incentives. But despite the huge tax break package – which dwarfed that of the winning cities – many saw Newark as an underdog to land H2Q, so much so that Saturday Night Live mocked the very idea.

• See related article: SNL Lampoons Newark's Odds Of Landing Amazon HQ (VIDEO)

Despite the huge tax incentives being offered to Amazon, some experts in the Garden State blamed the snub on New Jersey’s "anti-business" tax climate.

The New Jersey Business and Industry Association (NJBIA) commended Gov. Murphy's "enthusiasm for Newark as an ideal location for Amazon's future expansion." But its members also said that the state needs drastic changes when it comes to creating a business-friendly environment.

According to a Feb. 15 statement from the NJBIA:

"To make New Jersey more attractive to Amazon and others, we need to work on reforms that will improve our unfortunate standing as the state with the highest business taxes and worst business climate in the nation. We also should not sully corporations with misrepresentations relating to EDA's tax credit and economic incentive programs. We should recognize they are our job creators who fuel our economy... New Jersey needs a philosophical change in tenor and approach when it comes to business. NJBIA has been calling for no new or increased taxes, fiscal responsibility and reforms that will make New Jersey more regionally and nationally competitive. This is how we will truly become a high-value state and open for business."

“The Democrats' high-tax and over-regulation policies made the decision easy for Amazon,” Assemblyman John DiMaio previously said. “Billions of dollars in tax credits don't cover for our state's anti-business tax climate; it only makes it more obvious. The unfortunate truth is that New Jersey has been rated the worst state to own a business for years and it keeps getting worse.”

"Our highly skilled workforce and proximity to global markets aren't enough," DiMaio added. "If we want to bring the Amazons of the world to New Jersey we need sincere tax reform that lowers the cost of doing business and the cost of living."

Not all experts thought Amazon’s decision was a bad thing for the city, however.

State Assemblyman John Wisniewksi, a Democrat from District 19, previously said that the Amazon "bidding war" was putting New Jersey on a downward spiral.

"While the proposal would provide good jobs in the region, it also robs the state of the very revenue needed to address the consequences of such growth and development," Wisniewksi said.

"If we add 50,000 employees to downtown Newark, where's the money to maintain and expand the system?" Wisniewksi questioned. "Who would pay for the additional wear and tear on roads or the additional police and firefighters needed to ensure public safety?"

In October 2017, two radically different New Jersey think tanks came together at a press conference in Trenton to announce their opposition to "New Jersey's tax subsidy insanity."

"Offering $7 billion in tax breaks to a single corporation is terrible policy and a big step in the wrong direction," said Jon Whiten of the New Jersey Policy Perspective.

"In order to succeed in the long run, Amazon's new HQ2 needs sound public investments - like efficient and affordable public transit, new affordable homes and more - not enormous tax breaks," Whiten said. "It's appalling that eight years into a record-breaking surge in overly generous corporate subsidies, New Jersey's political leaders haven't learned their lesson, and are instead leading this national race to the bottom."

• See related article: NJ's Quest For Amazon HQ Is 'Insane,' Critics Say
• See related article: NJ Warehouse Workers Say Amazon Jobs Are 'Unsafe, Grueling'

Don’t forget to visit the Patch Newark Facebook page here. Learn more about posting announcements or events to your local Patch site here. Send local news tips and correction requests to eric.kiefer@patch.com

Photo: YouTube / Amazon