Amazon splitting HQ2 reveals contest was a sham

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Amazon splitting HQ2 reveals contest was a sham


Amazon is reportedly near deciding on the winner of its second-headquarters mission, often called HQ2.

Or, ought to I say “winners”?

It seems, if The New York Instances is true, that Amazon is near agreeing to separate its HQ2 mission amongst two cities: New York Metropolis and Arlington, Virginia. The 2 cities will reportedly obtain an as-yet-unknown portion of the 50,000 staff and $5 billion funding Amazon promised to winners of the mission.

Wait, huh? That wasn’t a part of the plan.

If Amazon selects two cities for HQ2, as reported, then every thing Amazon promised goes out the window. What makes this completely different from Amazon’s presence in different cities the place it has workplaces, similar to Boston or Los Angeles?

Will the corporate check with each websites, that are tons of of miles from one another, as HQ2? Or are we simply supposed to consider HQ2 as the complete japanese seaboard — any metropolis or city that’s accessible from Amtrak’s Acela service between New York and Washington, DC.

In truth, Amazon already has a large variety of staff in each the DC space and New York Metropolis. The Instances says it is the biggest variety of staff outdoors Seattle, and it employs hundreds of staff in every metropolis.

Is not Amazon stretching the which means of the phrase “headquarters” right here? What is the distinction between having a big satellite tv for pc workplace in a metropolis and what Amazon purports to name a “headquarters.”

There could also be a distinction for Amazon staff, however that is unlikely to be the case for the tax-paying public — which shall be footing a big a part of the invoice due to the tax incentives Amazon is demanding.

Learn extra:Individuals are livid about Amazon’s reported choice to separate its HQ2 between New York Metropolis and Virginia after months of deliberation

Critics of Amazon’s long-drawn-out HQ2 choice course of already questioned {that a} “second headquarters” might even exist. Dividing the mission into two equal-size headquarters simply provides extra gasoline to the argument that the complete course of was a ploy to pit cities in opposition to each other to maximise incentives.

It additionally breaks Amazon’s unique mandate for the mission that HQ2 could be a “full equal” to the corporate’s Seattle headquarters. If it is separate, it is not equal.

Amazon overrated its HQ2 funding a lot that cities had been prepared to do something for the prospect of touchdown it. Amazon in all probability a minimum of figured that into its calculus, and when it realized it might be simpler to depend the cities that did not leap on the probability to have Amazon within the yard, the technique shifted to simply maximizing good points.

Whereas we do not but know what tax incentives had been supplied up for Amazon to pick these two cities, nor what Amazon supplied up in return, we will safely assume it totaled within the billions.

Metropolis and state leaders jumped on the probability for what they noticed as a high-profile win — and apparent profit that constituents would see and admire. The upsides for native communities and governments — financial or in any other case — are actually not so instantly apparent.

If Amazon is ready to get away with basically robbing Virginia and New York of tens of millions in tax income and never even providing up in return what they initially promised, what else are they able to?

Learn extra about Amazon’s HQ2 mission:



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