Archive: Business & Technology

Governor Andrew M. Cuomo and Mayor Bill de Blasio announced Tuesday that Amazon will establish a new corporate headquarters in Long Island City, Queens. The decision followed a comprehensive, year-long selection process during which 238 cities across North America competed for the multibillion-dollar project.

In 2019, Amazon will occupy up to 500,000 square feet at One Court Square while working to construct four million square feet of commercial space on Long Island City's waterfront over the next 10 years, with expansion opportunities for up to 8 million square feet over the next 15 years. Through a $3.6 billion total investment, Amazon will draw from the diverse and talented workforce in New York State to fill at least 25,000 new jobs by 2029 and up to 40,000 jobs by 2034 with an average salary of more than $150,000. The construction is expected to create an average of 1300 direct construction jobs annually through 2033. Overall, the project is estimated to create more than 107,000 total direct and indirect jobs, over $14 billion in new tax revenue for the State and a net of $13.5 billion in City tax revenue over the next 25 years. The project provides a 9:1 return on investment.

"When I took office, I said we would build a new New York State - one that is fiscally responsible and fosters a business climate that is attractive to growing companies and the industries of tomorrow. We've delivered on those promises and more, and today, with Amazon committing to expand its headquarters in Long Island City, New York can proudly say that we have attracted one of the largest, most competitive economic development investments in U.S. history," Cuomo said. "With an average salary of $150,000 per year for the tens of thousands of new jobs Amazon is creating in Queens, economic opportunity and investment will flourish for the entire region. Amazon understands that New York has everything the company needs to continue its growth. The State's more than $100 billion infrastructure program - the most ambitious in our history - combined with our education initiatives like K-12 tech education and the first-in-the-nation Excelsior Scholarship program, will help ensure long-term success and an unrivaled talent pool for Amazon."

Last year, Amazon released a Request for Proposals to select one or more locations for additional headquarters operations in North America, leading to an unprecedented competition among more than 230 metropolitan areas. The joint New York City-New York State proposal focused on New York's unparalleled talent and the capacity of its academic institutions, public schools and workforce training programs to fill the jobs Amazon will create at the pace the company's rapid growth demands. New York State and New York City economic development officials collaborated to submit a robust response and have worked closely with Amazon over the past year on the winning proposal.

According to an economic impact study by REMI, Inc., a world leader in dynamic forecasting and policy analysis, the Amazon project will generate over $186 billion in Gross State Product for the New York State economy over the initial 25 years. REMI also projects over $14 billion in total new tax revenue for the State (in 2019 dollars), with annual revenues growing from $10.8 million in 2019 to nearly $1 billion in 2043. The City forecasts $13.5 billion in total new tax revenue.

The City-State agreement with Amazon includes commitments to build a jointly-funded 10,000 square-foot onsite employment center to connect local residents with jobs and training. A $15 million investment will expand the JobsPlus program to Queensbridge Houses and expand tuition-free tech training to its residents—serving nearly 1,800 residents over the next 10 years.

"This is a giant step on our path to building an economy in New York City that leaves no one behind. We are thrilled that Amazon has selected New York City for its second headquarters. New Yorkers will get tens of thousands of new, good-paying jobs, and Amazon will get the best talent anywhere in the world. We're going to use this opportunity to open up good careers in tech to thousands of people looking for their foothold in the new economy, including those in City colleges and public housing. The City and State are working closely together to make sure Amazon's expansion is planned smartly, and to ensure this fast-growing neighborhood has the transportation, schools and infrastructure it needs," said de Blasio.

The agreement also secures a new approximately 600-seat intermediate public school, a 3.5-acre waterfront esplanade and park, and the establishment of a Long Island City Infrastructure Fund to invest 50 percent of the project's PILOT proceeds to deliver on transportation and other neighborhood priorities that will be identified in collaboration with the local community.

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