Over the past year, multiple cities across the U.S. were in the running to become the headquarters for Amazon’s new facilities. With over 200 proposals to the online shopping giant, it was finally announced last week that the headquarters will be split in between two cities. The result? Two smaller locations that surprised many of the bidding cities.
The two cities chosen were Queens in New York City and the Crystal City area of Arlington, Virginia.
Why two cities?
Some are skeptical about why these locations were chosen.
Sources are reporting that the reason for the choice of NYC and Crystal City, which is a suburb of Washington D.C., is because the company already has roots planted there. By staying in close proximity, they will not have to uproot operations. In addition, Amazon may have received incentives and favorable tax subsidies from the local governments.
With 238 proposals, bidding was extremely competitive for the possibility to host Amazon in cities around the U.S. Since September, proposals have been both impressive and comical in an attempt to get Amazon’s attention. Many cities realized the advantage of having Amazon in their city, a company that would create up to 50,000 jobs.
The city of Tucson sent the online company a 21-foot cactus, Kansas City Mayor Sly James wrote 1,000 positive reviews on the site, and Stonecrest, Georgia offered the company over 300 acres of land if they were the chosen city.
A price to pay
When Amazon first announced its plans to open the headquarters in early September, cities were putting in their proposals for a chance to host the ever-growing company in their own cities. With 50,000 jobs potentially created, it was no doubt that by having Amazon in their city would be an amazing opportunity financially and all around.
It was originally reported that the company would take about $2.1 billion from local government subsidies. Now, analysts are saying that it could be almost double that, at $4.6 billion.
In addition to announcing their two new headquarters, Amazon also announced that the new east coast headquarters would now be in Nashville, which will provide another 5,000 jobs to the city.