Amazon Chooses New York and Arlington for Headquarters - Nashville for Center of Excellence
11/13/2018
According to company officials, the company will invest $5 billion and create more than 50,000 jobs across the two new headquarters locations, with more than 25,000 employees each in New York City and Arlington. The new locations will join Seattle as the company’s three headquarters in North America.
In addition, Amazon announced it selected Nashville for a new Center of Excellence for its Operations business, which is responsible for the company’s customer fulfillment, transportation, supply chain, and other similar activities. The Operations Center of Excellence in Nashville will create more than 5,000 jobs.
The new Washington, D.C. metro headquarters in Arlington will be located in National Landing, and the New York City headquarters will be located in the Long Island City neighborhood in Queens.
“We are excited to build new headquarters in New York City and Northern Virginia,” said Jeff Bezos, founder & CEO of Amazon. “These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come. The team did a great job selecting these sites, and we look forward to becoming an even bigger part of these communities.”
As an incentive for its New York facility, Amazon will receive performance-based direct incentives of $1.525 billion based on the company creating 25,000 jobs in Long Island City. This includes a refundable tax credit through the New York State Excelsior Program of up to $1.2 billion calculated as a percentage of the salaries Amazon expects to pay employees over the next 10 years, which equates to $48,000 per job for 25,000 jobs with an average wage of over $150,000; and a cash grant from Empire State Development of $325 million based on the square footage of buildings occupied in the next 10 years. Amazon will receive these incentives over the next decade based on the incremental jobs it creates each year and as it reaches building occupancy targets. The company will separately apply for as-of-right incentives including New York City’s Industrial & Commercial Abatement Program (ICAP) and New York City’s Relocation and Employment Assistance Program (REAP).
The community will benefit from New York City providing funding through a Payment In Lieu Of Tax program based on Amazon’s property taxes on a portion of the development site to fund community infrastructure improvements.
In Virginia, National Landing is an urban community in Northern Virginia located less than 3 miles from downtown Washington, D.C. Amazon will receive performance-based direct incentives of $573 million based on the company creating 25,000 jobs with an average wage of over $150,000 in Arlington. This includes a workforce cash grant from the Commonwealth of Virginia of up to $550 million based on $22,000 for each job created over the next 12 years. Amazon will only receive this incentive if it creates the forecasted high-paying jobs. The company will also receive a cash grant from Arlington of $23 million over 15 years based on the incremental growth of the existing local Transient Occupancy Tax, a tax on hotel rooms.
Amazon’s new Operations Center of Excellence will be located in downtown Nashville. Amazon will receive performance-based direct incentives of up to $102 million based on the company creating 5,000 jobs with an average wage of over $150,000 in Nashville. This includes a cash grant for capital expenditures from the state of Tennessee of $65 million based on the company creating 5,000 jobs over the next 7 years, which is equivalent to $13,000 per job; a cash grant from the city of Nashville of up to $15 million based on $500 for each job created over the next 7 years; and a job tax credit to offset franchise and excise taxes from the state of Tennessee of $21.7 million based on $4,500 per new job over the next 7 years.
Project Announcements
Custom Air Handling Solutions Expands Burton, Michigan, Manufacturing Operations
04/22/2025
AgriAmerica Fruit Products Expands Chautauqua County, New York, Operations
04/22/2025
The Hershey Company Expands Dauphin, Pennsylvania, Operations
04/21/2025
Delta Star Expands Lynchburg, Virginia, Manufacturing Operations
04/21/2025
Gillespie Precast Plans Asheboro, North Carolina, Manufacturing Operations
04/21/2025
Japan-Based TMEIC Corporation Americas Plans Waller County, Texas, Manufacturing Operations
04/21/2025
Most Read
-
Run a Job Task Analysis
Q4 2024
-
The Location Economics of Advanced Nuclear
Q1 2025
-
39th Annual Corporate & 21st Annual Consultants Surveys: What Business Leaders and Consultants Are Saying About Site Selection
Q1 2025
-
NEW NIMBYism: A Threat to The U.S. Economy
Q4 2024
-
Power, Policy, and Site Selection in 2025
Q1 2025
-
Why Workforce Readiness Can’t Wait
Q1 2025
-
Designing Beyond the Assembly Line
Q1 2025