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In a 14-month frenzy, cities across North America bent over backward to court Amazon's second headquarters, or HQ2, by offering subsidy and tax breaks. Recent reports suggest Amazon may split its new office campuses between Long Island City in Queens and Crystal City in Arlington, Virginia.
The company has at least $ 5 billion and is creating 50,000 jobs as part of the project. Even divided over two locations, which represents an enormous infusion into a local economy.
"We're going to do everything we can to fight Amazon coming to New York, and [to stop] "Jonathan Westin, executive director of the New York Communities for Change, an advocacy group that supports low-income communities in the region.
New York headquarters in Long Island City and Arlington, The activist fight is spreading – and some local officials are on the activists' side.
"New York state senator Michael Gianaris, who represents the Long Island City area, told CNN Business. "Why we would need to give public money to the earth is beyond me."
The terms of the proposals to Amazon from New York City and the Washington area have not been disclosed, so it is uncertain what exactly is on the table. However, precedent and public statements indicate that
Cuomo's enthusiasm might not be trickle down. Local elected officials have taken over speaking on a potential deal.
"The lack of transparency in this process is outrageous," local councilman Jimmy Van Bramer said in a statement Thursday.
New York City Mayor Bill of Blasio has called securing HQ2 a "tremendous opportunity," but conceded that "there are real development pressures to be navigated." He said the city would not be awarded any special incentives.
For state senator Gianaris, incentives are not the only issue. He also wants to know what he wants to know about the area of schools and strained subway system. "This is a neighborhood that's already being overdeveloped," he said.
"We believe Amazon is just the next iteration of what Walmart was," said Westin of New York Communities for Change.
Such points of view also bubbled up in the Washington area. A group called "Obviously Not DC," supported by activist group Fair Budget Coalition and the D.C., chapter of the Democratic Socialists, has a simple tagline: "Fund our communities, affordable housing, schools, and transit.
Massive incentive packages are a popular tool for large development projects, said Megan Randall, research analyst at the Tax Policy Center. The problem is, of course, such that the materiality is not sufficient. It's also important that businesses prioritize incentives when making decisions about where to locate, she added.
"Tax incentives, the research shows, actually plays a fair role in terms of where firms decide to go," Randall said.
Even so, economic incentives are a common part of development deals. For cities, it is difficult to offer in their tax breaks.
"It's hard to tell if the public and policymakers are asking for a feature of the discussion," Randall said. "or if tax incentives are going to retain their popularity."
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