Why it matters: Setting up shop in a region where you aren't welcomed is a lose-lose situation. Amazon was wise to pull out now and regroup rather than fighting politicians and residents that didn't want them around. The e-commerce giant can always select another host city if it is deemed necessary in the future.
Amazon on Thursday announced it has decided not to move forward with plans to build one-half of its second headquarters in New York City as originally planned.
Rumors surfaced last week suggesting Amazon was considering pulling out of the deal following unexpected pushback.
Amazon said that while polls showed that 70 percent of New Yorkers supported their plan and investment, several state and local politicians made it clear that they opposed their presence and would not work with them to build the type of relationship required to move forward with the project.
Interestingly enough, Amazon said it does not plan to reopen its search for another host city at this time. Instead, the e-commerce giant will move forward with existing plans in Virginia and Nashville and continue to hire across its 17 tech hubs and corporate offices in the US and Canada.
Amazon’s HQ2 was expected to bring 25,000 jobs and more than $27 billion in tax revenue to NYC over the next 25 years. Critics were concerned about the tax incentive being offered to Amazon and the possibility of rent hikes and increased traffic.
Second image via New York Post