Amazon pulls plan to open new headquarters in New York

Web retailer Amazon has shelved plans to open a new headquarters in New York following opposition from local politicians.

The Jeff Bezos-owned firm announced in November that it intended to build a second HQ site in Long Island City in New York, where it would employ some 25,000 people.

Despite polls indicating that New Yorkers supported the plan, activists also railed against Amazon’s arrival to the area.

“For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term,” the company said.

“While polls show that 70% 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.

“We are disappointed to have reached this conclusion.”

Amazon received some 238 proposals for locations to build a new campus, dubbed HQ2, and eventually decided on New York, where it secured subsidies and tax breaks to the tune of around three billion dollars (£2.3 billion).

State Senator Mike Gianaris, a vocal opponent to its expansion to New York, welcomed the turnaround, saying Amazon “took its ball and left town” instead of addressing the concerns of local people.

“What we witnessed today was the reason why Amazon was a bad partner for New York to begin with,” he said.

“Here is a company that has concentrated so much power that they think they can dictate to states and cities what they are allowed to tell their people, how much money of theirs they want to take to grace us with their presence and without any consideration for communities that their presence would effect.

“The housing crisis that would have resulted from this, the ongoing problems with our subways, the lack of school space in Hunters Point, where this facility would have been located, have been increasing in dimension.

“Amazon’s presence would have made that worse and yet there was no conversation about how the infrastructure of New York City would have been able to handle Amazon’s presence here.”

New York Mayor Bill de Blasio, who supported the deal, expressed his disappointment, saying: “You have to be tough to make it in New York City.

“We gave Amazon the opportunity to be a good neighbour and do business in the greatest city in the world. Instead of working with the community, Amazon threw away that opportunity.

“We have the best talent in the world and every day we are growing a stronger and fairer economy for everyone. If Amazon can’t recognise what that’s worth, its competitors will.”