New York City has lured Amazon with more than $1.5 billion in incentives — here’s what else they agreed to (AMZN)

long island city
Long Island City is going to be home to one of Amazon’s next headquarters.
The City of New York

The battle for HQ2 is finally over.

On Tuesday, in a blog post, Amazon named the two winners of its HQ2 project: Long Island City in Queens, New York, and the newly formed National Landing area of Arlington, Virginia.

The much-anticipated news comes after a year-long search that started with 238 proposals that were whittled down to a short list of 20 sites at the beginning of the year.

Read more: Amazon officially announces its HQ2 will be split between New York and Virginia

Amazon had initially said it planned to invest over $5 billion and accommodate as many as 50,000 high-paying jobs with its new HQ2. As a result, cities and states leaped at the chance to win over the e-commerce giant, putting together proposals for suitable sites and even offering tax incentives to sweeten the deal.

New York’s Gov. Andrew Cuomo even said he’d change his name to Amazon Cuomo to woo the company.

On Tuesday, both Cuomo and New York City’s Mayor Bill de Blasio praised Amazon’s decision to pick New York.

“New York City is about to get tens of thousands of new, good paying jobs and Amazon is about to meet the most talented work force in the world in one of the most diverse places on the planet. Welcome to Queens, #HQ2,” de Blasio wrote on Twitter.

“When I took office, I said we would build a new New York State – one that is fiscally responsible and fosters a business climate that is attractive to growing companies and the industries of tomorrow … New York can proudly say that we have attracted one of the largest, most competitive economic development investments in U.S. history,” Cuomo said in a statement to the press.

The exact terms of New York’s deal with Amazon had been laid out in a series of documents, signed by The City of New York, two city organizations, and a representative of Amazon. These documents were published online on Tuesday.

Here are the biggest takeaways:

Where will the new headquarters be?

  • The new headquarters will be located close to the waterfront in Long Island City, between 46th Avenue and 44th Road.
  • The new offices will occupy four million square feet of space, with the opportunity to expand to eight million square feet in the future.
  • The offices will be housed in a mix of private and public buildings including the office of the Department of Education, which will be relocated from Vernon Boulevard.
  • Once the city has agreed to Amazon’s design proposals, construction will begin within 12 months.
  • Amazon has agreed to donate space on its campus for a tech startup incubator and for use by artists and industrial businesses. It has also agreed to donate a site for a new primary or intermediary public school.
  • The company will also invest in infrastructure improvements and new green spaces.

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How many employees will Amazon hire?

  • Amazon will hire 25,000 people within the next 10 years. It said that these employees would have an average annual wage of $150,000. The hiring kicks off with 700 people, who will join the new offices in 2019.
  • If Amazon grows the headquarters in the future, around 40,000 people could be hired in total.

How much will Amazon invest in the local community?

  • In total, Amazon will invest nearly $3.7 billion over the next 15 years.
  • This includes a $5 million investment in funding workforce development initiatives, including technology training programs and internships for local students.

What tax incentives will Amazon receive?

  • If Amazon keeps up to its end of the bargain by creating 25,000 jobs, it is eligible to receive direct incentives of $1.525 billion. These are rebates on tax paid on employees salaries and reimbursements for building the new offices.

The extras

AP/Frank Franklin II

Read more about Amazon’s HQ2:

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