The much-rumored location of Amazon’s HQ2 is now official with Northern Virginia and New York City sharing the spoils.
The e-commerce outlet on Tuesday, November 13, has selected the Washington, D.C., suburb of Arlington and Long Island City in Queens as the future homes for the company’s new headquarters. In addition, the company said it would also open an operations center in Nashville.
Amazon said it will invest $5 billion and create more than 50,000 jobs across the two headquarters. The Nashville facility will create more than 5,000 jobs, according to the company.
“These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come,” said Jeff Bezos, founder and CEO of Amazon. “The team did a great job selecting these sites, and we look forward to becoming an even bigger part of these communities.”
The new Virginia headquarters in National Landing is less than three miles from downtown Washington, D.C. The company will receive performance-based direct incentives of $573 million based on the company creating 25,000 jobs with an average wage of more than $150,000 in Arlington.
In New York, Amazon will receive performance-based direct incentives of $1.525 billion based on the company creating 25,000 jobs in Long Island City each with an average wage of more than $150,000 annually. This includes a refundable tax credit through New York State’s Excelsior Program of up to $1.2 billion calculated as a percentage of the salaries Amazon expects to pay employees over the next 10 years. The company will receive these incentives over the next decade based on the incremental jobs it creates each year and as it reaches building occupancy targets.
With its Nashville location, Amazon will receive performance-based direct incentives of up to $102 million based on the company creating 5,000 jobs with an average wage of more than $150,000 in Nashville. This includes a cash grant for capital expenditures from the state of Tennessee of $65 million based on the company creating 5,000 jobs over the next seven years.