Google to invest $1 billion in New York City campus
Company adds three more properties to its Manhattan Chelsea Market acquisitionBy Cal Jeffrey
Why it matters: While Amazon is demanding New York City invest $3 billion in its plan to build there, Google is saying it is going to invest $1 billion to develop a campus in the city. The company has maintained a small presence of about 7,000 workers in offices there. It is now looking to double its workforce there while investing in its infrastructure.
On Monday, Google announced it will be investing $1 billion for a new campus in New York City. The development plan looks to establish a 1.7 million square-foot satellite location. The project would add about 7,000 jobs nearly doubling the company's New York presence over the next 10 years.
Google acquired the Manhattan Chelsea Market for $2.4 billion earlier this year. The company has obtained leases for 315 and 345 Hudson Street. It has also expressed interest and signed a letter of intent for 550 Washington Street.
"When we came to New York City almost two decades ago, it was our first office outside of California," said Google's Senior Vice President and CFO Ruth Porat in a blog post.
Google Hudson Square, as it will be called, will host the firm's Global Business Organization. It will begin moving into the Hudson Street locations in 2020 and Washington Street by 2022.
"With these most recent investments in Google Chelsea and Google Hudson Square, we will have the capacity to more than double the number of Googlers in New York over the next 10 years."
Google's billion-dollar investment in NYC is probably a welcomed relief to New Yorkers. As we reported last week, Amazon is planning on building a headquarters in New York City as well. However, instead of the company investing in the city, the taxpayers are shelling out $3 billion in tax incentives for the privilege of having the company build there.
The Amazon deal was brokered by the state in cooperation with New York City's Economic Development Corporation. The agreement was met with protests and complaints that the city could be using that money to fix its crumbling infrastructure.
Google on the contrary plans on investing in NYC's infrastructure and services.
"We believe that as our company grows, we have a responsibility to support the communities we call home," said Porat. "That means supporting the infrastructure and services that make our neighborhoods unique places to work, live and play."
Since 2011, the company has given over $150 million to NYC nonprofits. It helps support and beautify neighborhood parks. Google has also made many other investments of time, money, and effort within the community over the years