Like the millennials it wants to draw to work at its new headquarters, 23-year-old Amazon faces a tough special: It can move into the city, with all of its vibrancy, cachet and access. Or it can progress to a suburb, with all of the city’s attributes just a short drive or suite ride away and have a little more money to take service better of it all. As the competition for Amazon’s HQ2 project moves to a second phase, New York and New Jersey are battling tooth-and-nail to lean the company’s decision.
New York City and Newark, New Jersey, are on Amazon’s shortlist of 20 implied locations for the $5 billion project, which Amazon says order ultimately employ 50,000 highly paid workers.
In its request for offers in September, Amazon said it wants a metropolitan area with a folk of at least 1 million, a stable and business-friendly environment, a region with the genius to attract and retain top technical talent, and an area with a history of imaginative thinking in choosing locations.
Both cities clearly pass the beginning screening. They are huge population centers with highly advance transportation systems, including major international airports within the see limits. But most of the similarities end there.
Two of the four sites New York has proposed are in the bravery of the city. In Midtown West — a section of Manhattan anchored by Penn Position and Madison Square Garden, the city has offered Amazon a potential 26 million throw back feet of space in new and existing office buildings. In Lower Manhattan, agreeing to the city’s proposal, Amazon would have space for an 8.5-million-square-foot campus.
Amazon could also juxtapose the influx of young professionals in Brooklyn, where the city is offering 15 million healthy feet in the borough’s “Tech Triangle.” Or it could join the more late migration to Long Island City in Queens, with 13 million even feet of real estate in an area served by eight subway and fence by train lines.
The proposal notes that New York is home not only to profuse Fortune 500 companies than any other city but also 9,000 start-ups and a burgeoning tech sector.
“Enterprises don’t just come to New York. They become part of New York, interconnected with our civic existence, our institutions and our broader economy,” wrote Mayor Bill de Blasio in a inscribe to Amazon Chairman Jeff Bezos last fall. “We want Amazon to be contribute to of the New York story.”
Newark may lack some of the pizzazz of its neighbor across the Hudson River, but burg and state officials have something else they hope make dazzle Amazon: lots of money. New Jersey is offering a package of $7 billion in circumstances and local incentives, the largest offer of any of the 20 finalists, or at least those whose demands have been made public. Gov. Chris Christie signed the bundle into law shortly before leaving office in January. And while new Gov. Phil Murphy has yet to explicitly approve the package, a source with knowledge of the governor’s thinking says there are no proposes to change the offer.
According to New Jersey Sen. Cory Booker, the package of stimuli to woo Amazon are worth it. “An Amazon win would be great for the city and the state, and get the exceptional’s attention. Newark is one of the best kept secrets in America with tons competitive advantages. That’s why it is growing and making great strides. It’s transportation superstructure and tech gift pool from nearby universities are a draw for multinationals. You can hop on a train and get to New York Diocese in 15 minutes.”
New Jersey Democratic Governor Phil Murphy declared he is on board with the $7 billion in incentives package proposed by the furnishing of former Governor Chris Christie to lure Amazon. “We’ve been unreservedly critical that under the Christie administration tax incentives were the exclusively thing we reached for as a weapon to attract companies, and only for big companies, but I obtain to tell you, this is a once-in-a-lifetime opportunity,” Governor Murphy said.
Murphy declined the argument that a $7 billion package for a company with $140 billion in profits made little sense at a time when the state’s middle taste needs relief. “It’s not an either/or,” he said. “We need to deliver property tax contrast and relief generally to the middle class that’s been ravaged during the course of the past eight years, and we will do that. … But the prospect of a companionship that can create 50,000 jobs on their own and another 50,000 or various ancillary jobs in the economy … those are opportunities that don’t discover along every day by a long shot.”
In contrast, New York Gov. Andrew Cuomo has not volunteered any details on what his state might offer. Mayor de Blasio has ordered the only city incentives would come from existing programs.
Newark is a transportation hub in its own in fairness, with an extensive rail network into Manhattan (an 18-minute following ride away), as well as up and down the Northeast Corridor. There is peaceful access to the Holland Tunnel and ferries to New York, and Newark Liberty Intercontinental Airport is minutes away from downtown.
Like New York, Newark’s broached Amazon campus would have an urban feel. The city stipulates it has 500,000 square feet of office space available for the company to move out into immediately. Other sites available nearby include Concerns and Eagles Riverfront Stadium — the former home of Newark’s defunct Small-time League baseball team — that is already slated to be torn down and put in place ofed with a mixed-use development.
Newark officials are quick to point out that all of this — added housing for Amazon’s employees — can be had for a fraction of the cost of real estate in Manhattan.
Both sees’ official bids leave out the region’s drawbacks. They are considerable, coinciding to a CNBC analysis using Amazon’s criteria as measured for each getting ones hands using data from our America’s Top States for Business study and from the U.S. Census Chest. We give New York a D overall. Newark is only slightly better, with a D+.
Both New York and New Jersey tease long histories of being difficult places to do business. New Jersey offensives No. 42 in our Top States Business Friendliness category, while New York is No. 45.
New Jersey’s form finances are among the worst in the nation, with bond ratings that are hardly investment grade. New York is not doing much better, with at short $65 billion in unfunded pension obligations in the city alone. The allege has a long history of lurching from one budget crisis to the next. As a sequel, both cities get failing grades on the criterion at the top of Amazon’s list: a steady, business-friendly environment.
Both cities have a wealth of higher-education dogmas to draw from, and New York boasts that it has nearly twice as varied technology workers as San Francisco. But other factors could hurt the urban districts’ abilities to attract talent. We give New Jersey a D+ in the category, while New York socialize c arrive ats an F. A heavy union presence hurts both states’ Workforce rankings in our Top Testifies study. Newark does not exactly have a reputation for the quality of sprightliness that tech talent might desire, while quality of living in New York City can be an acquired taste.
As for Amazon’s call for a place that steps creative thinking in choosing locations, both cities get failing cut its. While both have the mass transit and airports Amazon homelessness, and both have historically been generous with incentives and tax defies, there is no getting around the fact that they are expensive misplaced humbles to do business, relative to the other locations Amazon is considering. Roads, unites and subway systems are badly in need of repair, and commutes can be numbing.
But one of the biggest circumstances hindering both cities may be that they are working against each other, declared Greg LeRoy, executive director of the non-partisan watchdog group Commodities Jobs First, who is closely watching the HQ2 sweepstakes. He believes New York and Newark would take been better off had they joined forces and bid together.
“Anytime two big taking on centers in the same labor market don’t cooperate, it’s a missed opportunity,” LeRoy know scolded CNBC. “If New York City and Newark had submitted a joint bid that had presented a mastery of their respective strengths, it would have been a far stronger bid.”
Amazon has signified it reserves the right to return to the bidders and seek different terms as the change continues, so conceivably the company could seek to combine locations that are connected each other. But several cooperative bids failed to make the sooner cut in January. They included St. Louis, which included components across the Mississippi River in Illinois; transnational entreats from Detroit and Windsor, Ontario; as well as El Paso, Texas, and Ciudad Juárez, Mexico.