Amazon Splits 2nd HQ Between NYC, DC Suburb

Amazon says it will split its long-awaited second headquarters between New York City and and Crystal City, part of Arlington, Virginia, as well as open a new facility in Nashville, Tennessee.

“These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come,” CEO and founder Jeff Bezos said Tuesday in an official press release.

The new headquarters will split the 50,000 jobs and $5 billion in local investments Amazon promised while taking bids from cities across the country, while adding 5,000 more for its new “Operations Center of Excellence” in Nashville.  In return, Amazon will receive incentives of about $1.5 billion from New York City and $573 million from Arlington.

The announcement marks the end of a year-long search for Amazon’s “H2,” as it came to be known.  The online retail giant narrowed a list of 238 initial applicants to 20 finalists, including Boston, Chicago and Miami.  

The process drew outrageous publicity stunts from local officials trying to attract attention to their bids and and cushy offers of heavy tax breaks and rebuilt infrastructure to accommodate the Seattle-based company.

Hiring will begin next year.  Amazon has said jobs in both cities will have average annual salaries of $150,000.  The new headquarters are expected to bring high-paying jobs and tax revenue, but critics anticipate local property values soaring into unaffordability and congested local infrastructure.

 

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