Reports of Amazon's HQ2 Split Raise Questions about Financial Incentives

Amazon Exec Rips `Leaking&apos to Bezos&apos Post on Headquarters

In January, Amazon narrowed its selection to 20 finalist cities, including Atlanta, Georgia; Raleigh, North Carolina; and Pittsburgh, Pennsylvania.

Splitting the headquarters will "shrink" Amazon's "effects on affordability", Zillow Research wrote yesterday.

"They're a real secretive company", the person said. Another will be Long Island City, in the NY borough of Queens, other people said. The Long Island City neighborhood, somewhat confusingly named, is the westernmost neighborhood of the Borough of Queens, located along the East River waterfront, with a smattering of fresh new parks with storybook views of the Manhattan skyline across the river.

Amazon did not respond to requests for comment. There's been intense competition to win over the company, with some throwing around billions of dollars in tax incentives.

The two locations that Amazon is reportedly nearing a deal with are New York City's Long Island City and Northern Virginia's Crystal City, according to The New York Times. Cuomo offered to travel to Amazon's Seattle hometown to continue talks, the source said. The Times also said that NY state had offered potentially hundreds of millions of dollars in subsidies, according to an unnamed source. He says the city is clearly learning what it takes to recruit headquarters, and having smaller companies in the city also allows them room to grow.

Since the Long Island City location has not yet been confirmed, we don't have information about where exactly any new buildings might be, but we'll be sure to keep you posted!

Adding to the confusion stirred by the Washington Post and CNBC.com, The Wall Street Journal reported November 4 that aside from Northern Virginia, Amazon is also engaged in late-stage talks with New York City.

The newspapers cited unnamed people familiar with the matter.

A spokesman for the Dallas Regional Chamber declined to comment. We get "a big slice of Amazon's innovation and development budget, and we do not have to absorb the thousands of lower-paying administrative jobs that would have clogged up our infrastructure and housing". The cost of living in D.C. or NY is not notably cheaper than Silicon Valley, he said.

Amazon may now split those jobs equally between two locations, The Wall Street Journal reported, with each getting 25,000. "We have a great incentive package", he said.

The motivation behind the split headquarters is said to be Amazon's desire to hire the best tech talent. Earlier this year, Amazon unveiled plans for an office expansion in Boston's Seaport District, promising 2,000 new technology jobs by 2021 in fields including machine learning and robotics.

Amazon has said it could spend more than $5 billion on the new headquarters over the next 17 years, about matching the size of its current home in Seattle, which has 33 buildings, 23 restaurants and 40,000 employees. He noted that Denver is already now struggling to handle its enormous growth and an influx of Amazon employees could have further exacerbated the problems we see in housing and traffic.

After it became clear finding a city that could lure 50,000 highly-paid tech workers wasn't as easy as it had thought, the Seattle company plans to add two new headquarters instead of one, both to spread the wealth and to give it access to the widest possible array of technical talent.

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