Newark A Finalist For Amazon HQ2, Company Announces

Amazon announced Thursday that 20 cities are finalists for its second headquarters and Newark was among those making the cut.

The decision comes several weeks after New Jersey lawmakers approved legislation to attract Amazon's second corporate headquarters to Newark, presenting the company with incentives to locate a facility that could create up to 50,000 jobs with an investment of $5 billion in tax breaks.

"We expect to invest over $5 billion in construction and grow this second headquarters to include as many as 50,000 high-paying jobs – it will be a full equal to our current campus in Seattle," Amazon said in a statement.

"In addition to Amazon’s direct hiring and investment, construction and ongoing operation of Amazon HQ2 is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community."

New Jersey leaders celebrated the decision, hoping that Newark will ultimately make the last cut.

"Newark made the top 20 list for Amazon's HQ2, which would bring up to 50,00 good jobs to the city! I'll continue championing jobs and investment," U.S. Rep. Donald Payne Jr., R-Essex, said on Twitter.

Former Gov. Chris Christie endorsed Newark as the potential location, although Camden and other communities also made a play. Read more: These 7 New Jersey Towns Could Be In Running For New Amazon HQ

Here are the communities that made the cut: Boston; New York City; Pittsburgh; Philadelphia; Montgomery County, Md.; Washington, D.C.; Raleigh, N.C.; Northern Virginia; Atlanta; Miami; Toronto; Columbus; Indianapolis, Chicago; Denver; Nashville; Los Angeles; Dallas; and Austin

"New Jersey has the features that would make us a great location for Amazon's second world headquarters," state Sen. Raymond Lesniak, D-Union, said earlier this month. "We have a skilled workforce, the best colleges and universities and a strategic location with access to highways, airports and shipping ports. This plan could help to attract good jobs and economic activity for years to come."

New Jersey Policy Perspective Vice President Jon Whiten said he is "glad" to see Newark on Amazon's short list for its new headquarters,saying New Jersey's largest city "would make a prime location for the company's HQ2 project."

"But we remain wary of the steep price tag for taxpayers that state and local lawmakers have already put on this project," he said. "By putting at least $5 billion, and potentially several billion dollars more, in taxpayer dollars on the table so early in the game, New Jersey has ensured that is returns will be minimized if Amazon were to ultimately choose the state. "

He said ensuring NJ Transit is reliable and affordable, strengthening the state’s public colleges and universities, or fostering smart, dense growth in walkable downtowns with more affordable places to live "are the policy solutions New Jersey should have prioritized in its efforts to woo Amazon."

"Merely blowing the lid off already out-of-control corporate tax break policies comes at a hefty price tag for New Jersey's future," he said.

The New Jersey tax-break bill created a "Transformative Headquarters Economic Assistance Program" under the administration of the New Jersey Economic Development Authority to grant tax credits for establishing a corporate headquarters in New Jersey.

There is no guarantee that this plan is going to lure Amazon to New Jersey, although the company has expanded its job base in the state in recent years. Atlanta and Austin, Texas are also considered leading contenders for the HQ2.

According to the bill, the headquarters project would be required to create at least 30,000 new full-time jobs and represent a capital investment of at least $3 billion. Lawmakers, however, believe the ultimate number could be 50,000.

The project would also be required to yield a net benefit to the state of at least 115 percent of the tax credits the company receives, according to a release from the state Senate.

The net benefits test would be calculated for a period of fifty years. The business would be required to certify that the tax credit would be a material factor in its decision to build the transformative headquarters in New Jersey, according to the legislation.

In September 2017, Amazon announced its intent to build a second headquarter in North America – known as HQ2. According to Amazon's documents, the company is willing to invest $5 billion in the project and create up to 50,000 new jobs.

Amazon listed some criteria for the new location: It would be in a metropolitan area, in a stable and business-friendly environment, close to world-class universities and to transportation infrastructure, and with optimal connectivity to the internet. The project could generate an estimated $10 billion in direct and indirect economic activity, according to the release.

According to Amazon, its headquarters in Seattle injected an additional $38 billion in the city's economy between 2010 and 2016, employs more than 40,000 persons directly in Seattle, and the economic activity generated by the company led to the creation of more than 50,000 jobs.

Associated Press photo