Amazon drops plans for NY headquarters after opposition

An employee works at the Amazon fulfillment center in the village of Dobroviz near Prague Czech Republic

In a statement announcing its decision on Monday, Amazon pointed to the "number of state and local politicians" who "have made it clear that they oppose our presence and will not work with us" as the reason it ultimately chose to pull the plug on the New York City headquarters, which would have been built in exchange for billions of dollars in taxpayer-funded subsidies.

Amazon announced it had scrapped its plans to build a second headquarters in NY, casting blame on "a number of state and local politicians" who "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". Inc abruptly scrapped plans to build a major outpost in NY that could have created 25,000 jobs, blaming opposition from local leaders upset by the almost $3 billion in incentives promised by state and city politicians.

Amazon is abandoning plans to build a second headquarters in NY, thanks to continued local opposition from certain state legislators.

Newark Mayor Ras Baraka said in a separate statement: "Given the city and state's assets-a strong talent pipeline, a diverse tech base, unmatched infrastructure and a highly accessible location-we are well poised to accommodate Amazon should they want to relocate New York City's portion of HQ2, in whole or part".

The year-long search for its so-called HQ2 culminated in Amazon picking Northern Virginia and NY after hundreds of municipalities, from Newark, Indianapolis competed for the coveted tax-dollars and high-wage jobs the project promised. NY has offered Amazon (NASDAQ:AMZN) as much as $3 Billion in incentives for the latter to build its headquarters in Queens.

New York City Mayor Bill de Blasio said Amazon was throwing away an opportunity by pulling out of the deal.

Amazon will not build a new headquarters in New York City, a stunning reversal to an ambitious plan that would have brought an estimated 25,000 jobs to the city.

In a statement issued on Thursday, Amazon specifically referenced a lack of support from state and local officials as a reason it pulled the plug on the lucrative project.

Polls showed 70 percent of New Yorkers supported Amazon's investment in the state.

Amazon had planned to spend $5bn on the two new developments and expected to get almost $3bn in tax credits and incentives, with plans to apply for more.

Contrary to Amazon's stance, it wasn't just local politicians that opposed Amazon in New York City: Unions and local groups and inhabitants protested the move. But political support failed to arrive and the idea of Amazon ditching its plans was even celebrated by the district congresswoman who complained about "creeping overreach of one of the world's biggest corporations" - something that was seemingly the final straw.

"Rather than addressing the legitimate concerns that have been raised by many New Yorkers, Amazon says you do it our way or not at all", said union spokeswoman Chelsea Connor.

Ocasio-Cortez, elected to the House last November, was among a faction of liberals who objected to the move, criticizing Amazon's practices and arguing that it shouldn't get a subsidy to open an office in NY. Now, people like Alexandria Ocasio-Cortez get to explain to their constituents why a new, diversified industry isn't coming to their city. There are now over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams.

Asked whether he would make another run at landing Amazon in Maryland, Hogan said: "We actually have had preliminary discussions with them already and we're looking forward to meeting with them to discuss it further".

New York State Senator Mike Gianaris, who represents the New York East River waterfront area in which Amazon planned to build a new campus, mounted a campaign against the plans, arguing that incentives should instead be spent on the community's infrastructure and transport deficit.

In its statement, Amazon said it has no plans to "reopen the HQ2 search at this time".

She later incorrectly claimed the $3 billion in subsidies that would have gone to Amazon could be used to hire teachers, fix the subway and "put a lot of people to work".

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