New Jersey just escalated the fight for Amazon’s headquarters with a $7 billion incentive – Business Insider
In perhaps the largest civic competition in modern North American
more than 50 cities are vying to host the next home of
Thursday is the deadline for cities that want the e-commerce
giant to build a
second headquarters there to submit their proposals. Amazon
says that its new campus, dubbed HQ2, will include an estimated
50,000 jobs and that the company will invest $5 billion in its
Many cities are trying to lure Amazon is through economic
incentives in the form of tax credits. Memphis, Tennessee, said
it would give the company
$60 million, while Chula Vista, California, is considering
a $400 million incentive package.
But so far, it looks as though Newark, New Jersey, could be
offering Amazon the most.
Gov. Chris Christie wants to deploy $7 billion in potential tax
incentives for Amazon in the state’s largest city, Christie’s
office said in a
statement on Monday.
The plan would expand a subsidy program,
Grow NJ, and provide extensive economic incentives for
companies (like Amazon) that launch “transformative projects.” It
would raise the cap on subsidies to $10,000 from $5,000 for every
job Amazon creates.
The incentives could reach $5 billion over the next decade,
the Observer. The remaining tax breaks would come from a $1
billion city property-tax subsidy and a wage-tax waiver of $1
billion for Amazon employees over the next 20 years — an offer
announced this week.
Newark’s proposal includes a redevelopment of the city’s
riverfront area for the site of HQ2, a representative from the
project’s developer, Lotus
Equity, confirmed to Business Insider on Tuesday. The project
will happen regardless of whether Amazon comes to Newark.
Designed by four architecture firms,
the neighborhood’s master plan calls for redeveloping 11.5
acres near downtown. The project includes 1,800 housing units, a
150,000-square-foot hotel, 100,000 square feet of retail space, a
30,000-square-foot food hall, 30,000 square feet of public space,
up to 3,000 parking spaces, and up to 2 million square feet of
commercial space. It also calls for demolishing the former New
Jersey Bears stadium.
There is no set timeline for when Lotus will break ground.
Practice for Architecture and Urbanism will lead the master plan.
Michael Green Architecture and TEN Arquitectos are also involved,
while Minno & Wasko Architects and Planners is the architect
Just 10 miles west of Manhattan, Newark has for decades tried to
launch a large-scale economic revival.
The city faces competition from other large cities like Boston,
Chicago, and New York City for HQ2. Amazon has said it plans to
make a decision in 2018.
Amazon is likely to choose a city that offers substantial tax
breaks, so Newark’s bid makes sense. The company’s
proposal guidelines say that it “may require special
incentive legislation in order for the state/province to achieve
a competitive incentive proposal.”