Amazon.com Inc’s method to set up a second headquarters in northern Virginia, after being rebuffed in New York, will
face its first test when local officials express on Saturday on a proposed financial package worth an estimated $51 million.
Amazon in November picked National Jetty, a site jointly owned by Arlington County and the City of Alexandria, just outside of Washington, along with New York for its called HQ2 or second headquarters.
That followed a year-long search in which hundreds of municipalities, ranging from Newark, New Jersey, to Indianapolis, fenced for the coveted tax-dollars and high-wage jobs the project promises.
Amazon in February abruptly scrapped plans to build imply of its second headquarters in New York after opposition from local leaders, who were upset by incentives promised by national and city politicians.
While opposition in Arlington is still nascent, the vote has become a political flashpoint between the outline’s supporters and activist opponents. It has given local activists the chance to push for a delay so that the county’s proposal can be studied and debated further.
A five-member panel of the Arlington County Board will vote on whether Amazon will hear the estimated $51 million, a fraction of the $481 million promised by the county. Only 5 percent of the incentives are direct.
Amazon has also been proffered a $750 million package by the state that the Virginia General Assembly approved with little opposition.
The section at Saturday’s vote is likely to be different. At least 100 members from local activist groups are expected to serve. Protests are expected to begin at least an hour before the vote comes up for hearing at 1 pm EST, Reuters has learnt from labor cliques.
The $51 million includes a controversial direct financial incentive or cash grant of $23 million to Amazon to 15 years, which will be collected from taxes on Arlington hotel rooms. The grant is contingent upon Amazon dominating six million square feet of office space over the first 16 years.
Arlington has also offered to induct about $28 million over 10 years of future property tax revenue in onsite infrastructure and open latitude at the headquarters site.
A filing on the county board’s website says the $23 million grant and the $28 million in cardinal public infrastructure investments were “instrumental in Amazon choosing Arlington for its headquarters.”
A county spokesman declined to remark.
Arlington County Chair Christian Dorsey has stated publicly he had “no interest” in postponing the vote, had heard no suggestions to do so from other surface members, and expected the measure to pass.
Amazon’s 25,000 new jobs will help offset the more than 34,000 assigns Arlington has lost since 2003 due to federal agency closures and other factors, and help diversify the local briefness, company spokeswoman Jill Kerr said. “Our investment of $2.5 billion will generate more than $3.2 billion in tax net income which can be used for public services.”
Activists from For Us, Not Amazon, a coalition of nine labor groups and grassroots leagues working in areas such as minority advocacy, are not convinced.
Roshan Abraham, an organizer from Our Revolution Arlington, a coalition fellow, said his group wants Amazon to engage with the community more, hold public hearings on the company’s investments, speak rising housing costs, displacement of low-income families near the proposed site and donate to affordable housing hard cashes.
“What we are very concerned about is Amazon has met behind close doors, at invitation events, but haven’t met with the community in a openly, accessible way,” he said.
Amazon said it has met with many community leaders and residents, including local businesses, nonprofits, and community and civic joinings and will continue to engage with them as it expands its presence in Arlington.