Amazon Lands $819M In Incentives To Put HQ2 In Crystal City

ARLINGTON, VA -- It's official: Amazon has chosen Crystal City as one of two locations that will split its new second national headquarters, meaning billions of dollars in investment and 25,000 workers for the neighborhood, Amazon has announced. Crystal City reportedly offered $819 million in incentives.

Amazon was originally going to select one location for $5 billion in investment and 50,000 jobs, but decided to split it between two localities due to concerns about their ability to attract that much tech talent in one place. Long Island City in Queens, N.Y., won the other bid.

The Washington Post reported recently that Amazon was so close to settling on Crystal City, in fact, that real estate developer JBG Smith removed some of its buildings off the leasing market. Officials were also mulling over how to announce the news to the public after the midterms, though Amazon could be having similar talks with other cities. The surprise announcement that Amazon would split the headquarters into two places came just days ago.

“We are excited to build new headquarters in New York City and Northern Virginia,” said Jeff Bezos, founder and CEO of Amazon, in a statement. “These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come. The team did a great job selecting these sites, and we look forward to becoming an even bigger part of these communities.”

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The Post said hundreds of workers would probably be moved into 1851 S. Bell Street or 1770 Crystal Drive.

“We are proud that Amazon has selected National Landing for a major new headquarters," said Arlington County Board Chair Katie Cristol in a statement. National Landing refers to a neighborhood that includes both Crystal City as well as Pentagon City and neighboring Potomac Yard in Alexandria. "This is, above all, a validation of our community’s commitment to sustainability, transit-oriented development, affordable housing and diversity."

The online retail behemoth will invest $2.5 billion and bringing in 25,000 high-paying jobs to the area, occupying 4 million square feet of office space with the opportunity to expand to 8 million square feet over the next 12 years, the statement adds.

“I’m thrilled that our skilled workforce helped persuade Amazon to bring a major new headquarters and its tens of thousands of jobs to Virginia," Sen. Tim Kaine (D-Va.) said in a statement. "Congratulations are in order to Governors McAuliffe and Northam and the local leaders who worked to ensure that this deal includes investments in our education and transportation infrastructure.”

Northern Virginia was one of 20 areas on the e-commerce giant's short list when it was released. But experts had long focused specifically on Crystal City as a likely landing spot due to its proximity to Reagan National Airport, its highly educated and diverse workforce, the fact that most of it is owned by one developer (JBG), and other factors. The fact that Virginia is considered a business-friendly state reportedly also weighed into the decision.

There were 20 finalists, including Chicago, New York, Atlanta, and other major cities, and many have reportedly offered incentives to Amazon to move there. It is a highly sought after project because Amazon claims it would include $5 billion in investment and 50,000 high-paying jobs.

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There were other reasons to suspect Crystal City was at the top of the heap. Jeff Bezos already owns the area's newspaper, the Washington Post, as well as D.C.'s largest mansion, and it makes sense he would want to have a significant presence in stone's throw of a Congress that could look to target his company's labor practices, for example.

The D.C. area had three spots on Amazon's shortlist of 20 finalists: Northern Virginia, D.C, and Montgomery County, Maryland, but Northern Virginia had long been seen as the favorite.

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