Deal To Bring Amazon Cargo Hub To NJ Falls Apart

NEWARK, NJ — A proposed deal that would have brought an Amazon cargo hub to Newark Liberty International Airport has fallen apart, officials reported Thursday.

The Port Authority of New York and New Jersey – which runs Newark Airport – first announced plans to launch a 20-year-lease with Amazon Global Air in August 2021. Amazon was expected to transform two existing structures at Newark Airport into a new, “state-of-the-art” air cargo campus, with a targeted investment of $125 million for renovation.

The Port Authority would have received a lump sum upfront payment of $150 million and another $157 million in additional rent over the life of the agreement, which covered about 250,000 square feet of cargo space on 23 acres at the busy airport.

However, the project has been seeing ardent opposition from local residents and community activists since it was first announced. Read More: Amazon Mega-Hub Deal At Newark Airport Still Seeing Pushback

On Thursday, the Port Authority released an update about the proposal. According to chief operating officer Huntley Lawrence:

“On August 5, 2021, following a publicly advertised request for proposals and the submission and evaluation of proposals, the Board of Commissioners authorized the Executive Director to enter into exclusive negotiations for a lease with Amazon for the development of existing cargo buildings at Newark Liberty International Airport. Over the past year, the Port Authority and Amazon have engaged in good-faith negotiations. Unfortunately, the Port Authority and Amazon have been unable to reach an agreement on final lease terms and mutually concluded that further negotiations will not resolve the outstanding issues. The growth of air cargo and the redevelopment of airport facilities in a manner that benefits the region as well as the local community remain a top priority of the Port Authority. Moving forward, the Agency will examine options and determine the best future utilization of these cargo facilities.”

Reached for comment, a spokesperson for Amazon offered Patch the following statement about the deal:

“After months of good faith negotiations with the Port Authority of New York and New Jersey, we’re disappointed to report that we’ve been unable to reach a final deal for the regional air hub at Newark Liberty International Airport. Despite this outcome, we value our relationship with the Port Authority, and we’re proud of our robust presence in New Jersey and look forward to continued investments in the state.”

When it was first announced, the proposal was praised by several supporters, including Gov. Phil Murphy, who said it was expected to lead to the creation of more than 1,000 jobs and provide "significant opportunities" for minority- and women-owned business enterprises.

Officials also said the facility would bring some much-needed revenue to the Port Authority, while boosting an international supply chain that saw constant disruptions amid the coronavirus pandemic.

ADVOCATES: 'A MISGUIDED SECRET DEAL'

The proposal has seen harsh criticism from some Newark residents and area activists, however, who have complained about a lack of transparency and potential impacts to traffic and the environment. Critics have also questioned the types of jobs the deal would have brought to the region, including their pay and safety.

• See related article: Protesters Bash Amazon's Plan To Bring Mega-Hub To Newark Airport

Elected officials who have previously expressed concern about the proposal include U.S. Rep. Donald Payne (NJ-10), U.S. Rep. Donald Norcross (NJ-1), Newark Mayor Ras Baraka, Elizabeth Mayor Chris Bollwage, New Jersey Sen. Joe Cryan and Assembly Majority Conference Leader Annette Quijano.

Meanwhile, members of the Good Jobs Clean Air NJ coalition have spearheaded the fight against the proposed cargo facility. Several of them spoke out Thursday, cheering its apparent demise.

Their allegations included:

Chloe Desir, Environmental Justice Organizer at Ironbound Community Corporation - "For an environmental justice community continuously fighting for our right to clean air and well-paying, safe jobs for its people, this is a big triumph. When business comes in, we envision an opportunity for good jobs, alongside community engagement and uplift. Amazon has shown they do not align with their unwillingness to comply with basic standards of safe, well paying jobs without added pollution or injury rates set by the community. This win has shown our voices can fight the careless greed of corporations that add harm to our environment."

Kim Gaddy, Executive Director of South Ward Environmental Alliance - "This is a great victory for South Ward residents who came together in solidarity for Clean Air and Good Jobs. I applaud all the residents for their participation to fight for a healthy and vibrant environment where families can work and thrive."

Megan Chambers, Co-Manager of the Laundry, Distribution and Food Service Joint Board, affiliated with Workers United, SEIU - "This is a win for the community and for workers. The Amazon cargo hub secretly planned last year for Newark Airport would have increased toxic pollution in the area, jeopardizing the health of the overwhelmingly Black and Latinx community residents who live nearby. Amazon has been building warehouses across our state at a head-spinning rate, without community input and without a commitment to safe, quality jobs. We need good jobs and clean air in New Jersey, not this Amazon cargo hub. Our union is proud to have been part of the coalition that opposed this misguided secret deal."

"Nayeli," a member of Make the Road NJ and former Amazon worker - "This is an important victory for workers and former workers who have been injured working for one of the several Amazon’s warehouses here in the state, like myself. I had an extreme allergic reaction while working at Amazon, I had to wait hours for the company to call an ambulance. Amazon disregards worker’s health. My mother worked at Amazon as a seasonal worker without health insurance. She became so injured on the job from pulling heavy packages that she is suffering from chronic pain."

Terrance Bankston, NJ Environmental Justice Organizer at Clean Water Action - "We were at a crossroads of crisis and justice. We chose justice. Environmental justice and labor advocates, representing Newark and Elizabeth, stood strong in this effort to shut down the secret deal between Amazon and the Port Authority. This is a huge victory for Newark, Elizabeth and the rest of New Jersey. Our coalition is committed to setting higher standards: No more bad jobs, and dirty air in black and Latinx communities. Our community deserves protection."

David Lenis, a member of Make the Road NJ and an Elizabeth resident - "While our communities fought for basic health and safety, Amazon was unwilling to comply with basic labor and environmental standards. This fight has shown us that when we come together and fight against corporate greed and environmental destruction, our communities win."

George Boada, lifelong Elizabeth resident and member of Teamsters Local 863 and Joint Council 73 - "We are setting a new standard: corporations coming into our communities must guarantee good jobs, clean air, and be accountable to working-class people. We have shown that when workers and community members unite together, we are more powerful than the largest corporations in the world, even Amazon. No one should ever have to compromise their health and safety in the workplace or in our communities in the name or corporate profits. This is only the beginning."

Chanda Causer, Executive Director of Main Street Alliance - "Corporate greed limits economic opportunity for workers and small businesses alike. Black and Latinx organizers fought and won against Amazon in Newark, demonstrating the power of our communities. Main Street Alliance is proud to elevate the voices of small business owners in partnership and solidarity with workers, as we push our leaders to act and rein in monopoly power."

Wynnie-Fred Victor Hinds, Newark Environmental Commission and Executive Director of Weequahic Park Association - "It is very inspiring to see a coalition of grassroots organizations, local businesses, and labor unions, supported by residents, motivate the Port Authority and our representatives into taking action for the benefit of our community, well-being, and planet. This is the paradigm of Environmental and Social Justice we should continuously strive for, true community input, representation, and empowerment."

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