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Amazon cancels plans for New York headquarters

Amazon has dropped plans to open HQ2 in New York.

Asif Khan

February 14, 2019 10:15 AM

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After months of protests and pot shots from New York politicians, Amazon has decided to cancel its plans for a New York headquarters. Amazon NY HQ2 would have been a massive complex in Long Island City, Queens. The company was also to receive almost $3 billion in local and state tax incentives. 

"While polls show that 70 percent of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and 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 in a statement. 

The cancellation of NY HQ2 comes as a huge blow to New York Governor Andfrew Cuomo and Mayor Bill de Blasio, who risked a lot of their political capital with deals to secure this massive investment from Amazon. Under the plan, Amazon would employ as many as 40,000 people and occupy nearly eight million square feet of office space within fifteen years.  "You want to diversify your economy? You don't want to just be Wall Street and finance?" asked Governor Cuomo at the press conference last week. "We need Amazon."

Amazon met a lot of opposition from New Yorkers who were not happy about the billions of dollars of tax incentives and the prospects of radically higher rent and real estate prices. This potential gentrification providing a rallying cry for local politicians who grilled Amazon executives at hearings in December of 2018. The people of New York have spoken, and Amazon as well as New York's governor and mayor have egg on their faces. Hopefully Amazon will consider a location that is open to their needs, like somewhere in Ohio.

Asif Khan

CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.