Amazon Incentives Package Approved By Arlington County

ARLINGTON, VA—The Arlington County Board unanimously approved the incentives package for Amazon related to the future headquarters at National Landing Saturday, March 16. The county will provide $23 million over 15 years provided that it creates at least 25,000 high-paying jobs and has 6 million square feet of office space by 2035. The incentives will be funded by a portion of revenue from a tax hike on hotel rooms or other paid lodging.

Amazon's presence could give the county a $14 return for every $1 in incentives, according to the Arlington Economic Development Commission. Additional tax revenue from the Amazon headquarters will be used to improve schools, affordable housing, parks and transportation.

"I view this agreement as a new model for economic development, where most resources are devoted to improvements in infrastructure and developing human capital," said Arlington County Board Chair Christian Dorsey, referring to planned investments in transportation, infrastructure, affordable housing. "Only 5 percent of the incentives are paid directly to Amazon, and only if they are successful in contributing to revenue growth while fulfilling their commitments to invest in Arlington."

The county's hearing on the incentives drew over 100 speakers and disruptions from protesters. Those opposed to the Amazon incentives raised concerns about housing prices increasing for low-income residents, according to The Washington Post.

Amazon will work with developer JBG Smith to develop a new headquarters. According to the developer, the e-commerce giant will lease 241 18th Street and 1800 South Bell in Crystal City this year and 1770 Crystal Drive in 2020. Amazon also plans to purchase the Pen Place and Met 6, 7 and 8 development sites in Pentagon City for 4.1 million square feet of office space.

The state approved its own Amazon incentives package in January. Amazon will receive $550 million in incentives if it creates 25,000 jobs and up to $200 million if it creates 37,850 jobs total. Virginia has also committed $195 million for transportation projects including Route 1 improvements, a new entrance to the Crystal City Metro station and pedestrian bridge from Crystal City to Reagan National Airport.

Amazon originally planned to locate new headquarters in Arlington and New York City. However, Amazon cancelled the New York headquarters after proposed incentives drew ire from local politicians. The cancellation of the New York headquarters does not impact the Arlington headquarters, county officials said.

(For more news and information like this, subscribe to the Arlington Patch for free. If you have an iPhone, click here to get the free Patch iPhone app; download the free Patch Android app here.)