Amazon Canceling NYC HQ2 Might Benefit Seattle Area

SEATTLE, WA - Amazon sent a nice valentine to economic development directors across the U.S. on Monday - except the ones in New York City.

Amazon canceled plans to build half of its HQ2 in New York City, saying it will spread the 25,000 jobs from that project across 17 corporate offices and tech hubs in the U.S. and Canada - and that includes the Seattle corporate offices.

The company has built about 12 million of a total of 14 million square-feet of office space in South Lake Union. It's possible Amazon will expand its capacity here beyond that, but there are no projects have been made public yet.

The Seattle Times reported Thursday that Amazon has capped its growth in Seattle, but the company says it hasn't set any sort of limit on job growth here. The Seattle Times reported Thursday that Amazon will "end its growth in Seattle in coming years."

"We currently have more than 9,000 open roles in Seattle and will continue to evaluate future growth," an Amazon spokesman told Patch.

Amazon's HQ2 shocker came after some New York politicians and activists pushed back on the company's expansion in Queens. Several critical state and local officials made clear that they "will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City," Amazon said.

Seattle Councilwoman Teresa Mosqueda had a different take. She said Amazon wanted tax incentives to build HQ2, but wasn't up for negotiating fairly with labor unions.

"The City of New York and the community of Queens stood up, demanded a seat at the table, sought protections for workers across the supply chain, requested investments in housing and infrastructure that make local economies thrive – and the response from Amazon was to pull out," she said Thursday in a statement.

New York officials offered Amazon $1.2 billion in state tax credits, $505 million in construction grants, and another $1.3 billion in incentives from New York City. In exchange, Amazon would create 25,000 jobs and generate $27 billion in tax revenue.

Labor unions were divided on the New York HQ2 project. Amazon reportedly had deals with two unions - 32BJ SEIU and the Building and Construction Trades Council - agreeing in one case not to oppose unionization efforts.

"Politics and pandering have won out over a once-in-a-generation investment in New York City's economy, bringing with it tens of thousands of solid middle class jobs," Gary LaBarbera, the Building and Construction Trades Council's president, said in a statement Thursday.

But groups such as the Retail, Wholesale and Department Store Union vehemently opposed the company's presence, citing its previous hostility to unions and its reportedly poor treatment of workers.

"Rather than addressing the legitimate concerns that have been raised by many New Yorkers Amazon says you do it our way or not at all, we will not even consider the concerns of New Yorkers – that's not what a responsible business would do," Chelsea Connor, RWDSU's director of communications, said in a statement.

That's a contrast to Seattle. Last summer, members of the local steel workers union joined Amazon in opposing the head tax - largely because Amazon threatened to not move forward with plans to build an office tower.

The other half of HQ2 outside Washington, D.C., will move forward, as will a customer service center in Nashville.

Patch reporter Noah Manskar contributed to this report

Patch file photo/Neal McNamara