[ad_1]
Jonathan O Connell
Reporter covering economic development with a focus on commercial real estate and Trump organization
The district offered Amazon.com up to $ 1 billion in tax incentives to open a second headquarters with 50,000 jobs in Washington, probably the largest grant ever awarded by the city to a single employer but also much lower than what other jurisdictions have agreed to provide to the technology. giant.
The package, released Monday by Mayor Muriel E. Bowser (D), offered a combination of 15-year property, sales and franchise tax reductions, as stipulated by a current municipal law to attract technological jobs in the city.
Bowser's office estimated the value of the package at between $ 488 million and $ 1.053 billion, depending on the number of jobs created by Amazon, the number of jobs held by residents of the district, the number of offices occupied by the company. and other factors. (Jeffrey P. Bezos, chief executive of Amazon, owns the Washington Post.)
Unlike states such as Maryland and New Jersey, which directly endorsed much larger grants for Amazon, all of the benefits offered by the city to Amazon were being offered to other employers considered "high-tech companies." qualified "under a 2000 law, Bowser's chief economic assistant, Deputy Mayor Brian Kenner, said in an interview.
"It's something that every qualified high-tech company could qualify for," Kenner said.
The district offered other benefits to Amazon, including a "one-day authorization" for developers building Amazon's new buildings, a dedicated link between the city government and the company, a pilot program of autonomous cars, extending the city's fiber optic network and integrating Amazon technology into the company's campus.
Virginia Governor Ralph Northam (D) spoke at a press conference following the announcement of the election of Crystal City as the headquarters of Amazon's new headquarters. (Kevin Lamarque / Reuters)
Bowser is also committed to investing the "extra revenue" generated by the Amazon project into affordable housing initiatives, which would, according to the proposal, create an additional 20,000 affordable units over the course of the project.
[[[[Amazon will receive more than $ 2.4 billion in premiums from Va., N.Y. and Tenn.]
The public subsidies debate continued after the company announced last week that, instead of creating a 50,000-job site, 25,000 jobs would be targeted for Crystal City in northern Virginia. for Long Island City in New York.
Maryland has offered more than eight times what the district has done, about $ 8.5 billion, while Virginia and Arlington County have agreed to provide $ 573 million to 25,000 jobs and $ 223 million. dollars of transportation improvements that should also benefit the community.
In addition, Virginia has agreed to contribute $ 1.1 billion over 20 years to expand technology-related higher education in the state, including a new campus for Virginia Tech graduates in Alexandria. , located near the Amazon site.
[For universities in Virginia, Amazon came at the perfect moment]
When Amazon announced its decision, Bowser issued a statement in which it called the "DC victory" and called on the region to improve public transit and invest in affordable housing, a top priority for its administration since its entry. in operation in 2015.
Kenner said Amazon has clearly made access to the nation's capital a priority. He said that he had already heard about local universities interested in updating their program to meet Amazon's needs.
"Frankly, I think they've come as close to Washington as possible," he said. "We know that one of the reasons they chose this area is a highly educated workforce and an excellent public transit system. We are frankly in a growing region. "
Amazon's decision has been challenged by many jurisdictions that, like the District, have not won any of its jobs. But this also prompted the winners to strive, especially in New York. New York offered tax credits equivalent to $ 48,000 per new job, while Virginia agreed to pay $ 22,000 in cash to the workforce.
Virginia leaders reacted mostly positively to the agreement signed by Governor Ralph Northam (D). However, prominent politicians in New York City have criticized the package negotiated by Governor Andrew M. Cuomo (D).
"If New York has what Amazon wants, why is it paying society so much to make that decision?" Writing the editorial board of The New York Times last week, the caller "a bad deal".
Cuomo responded by writing that the Times had enjoyed significant tax benefits from the city and the state for its headquarters.
"Should not the Times apply the same rules and the same theory as those applied to the Amazon transaction?" Wrote Cuomo.
To qualify for incentives as a high-tech enterprise with respect to district law, a business must conduct more than half of its business in Internet-related services, e-commerce or similar activities.
[Amazon splits prize between Crystal City and New York]
A member of the Security Council, Jack Evans (D-Ward 2), spoke last week after the decision but before Bowser's offer is made public, Crystal City's choice is "the brave new world." ".
Other board members quickly turned their attention to more diverse problems at the city level. Charles Allen (D-Ward 6) said the city's top priority should be planning for infrastructure and transportation overhaul. David Grosso (I-At Large) said the city's progressive policies put it in a "very good position" to deal with Amazon.
The District's bid for the Amazon project, which outweighed a disability, was that, unlike other candidates, it lacked a single site to accommodate the entire development. Bowser's economic team has instead offered Amazon four fast-growing neighborhoods and bundled offerings that include a mix of public and private sites in partnership with developers.
One site included properties on both sides of the Anacostia River, Navy Yard and Anacostia, while the other three sites included parcels located near Union Station, U Street Northwest and RFK Stadium.
Unlike the Maryland and Virginia officials, Bowser released most of her proposal – including locations – even though she kept details of the grant program for months.
Instead of focusing on what could have been, said Kenner, it was time to return to work to make the region more affordable for more people – a growing need with the first employees of the region. 'Amazon, which will start next year.
"We will continue to be very aggressive in housing and push our regional partners to be equally aggressive in housing," he said.
Peter Jamison, Robert McCartney and Fenit Nirappil contributed to this report.
[ad_2]
Source link
