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
than 50 citiesÂ are vying toÂ host the next home of
Bids are dueÂ on Thursday, the deadline for cities that want
the e-commerce giant to build a
second headquarters in their hometown. Dubbed HQ2, Amazon’s
campus will bring an estimated 50,000 jobs, and the company will
invest $5 billion in its construction.Â
ManyÂ 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, whileÂ Chula Vista, California is
aÂ $400-million incentive package.
But so far, it looks like Newark, New Jersey could be
offeringÂ AmazonÂ the most.Â
The plan would expand a subsidy program,Â Grow
NJ, and provide extensive economic incentives
forÂ companies (like Amazon) thatÂ launch “transformative
projects.” It would raise the cap on subsidies fromÂ $5,000
to $10,000 for every job Amazon creates.
The incentivesÂ could reach $5 billion over the next
decade,Â according toÂ 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 â€” a new offer
that was announced this week.
Newark’s proposal includes a redevelopment of the city’s
riverfront area for the site of HQ2, a spokesperson from the
project’sÂ developer, Lotus
Equity, confirmed to Business Insider on Tuesday. The project
will happen regardlessÂ of whether Amazon moves to
Designed by four architecture firms,
the neighborhood’s masterplanÂ redevelops 11.5 acres near
downtown. The project will include 1,800 housing units, a
150,000-square-foot hotel, 100,000 square feet of retail, a
30,000-square-foot food hall, 30,000 square feet of public space,
up to 3,000 parking spaces, and up to two million square feet of
commercial space. It will also demolish the former New Jersey
There is no set timeline for when Lotus will break ground.
Practice for Architecture and Urbanism willÂ lead the master
plan.Â Michael Green Architecture and Ten Arquitectos are
also involved, while Minno & Wasko Architects and Planners is
theÂ architect of record.
Located just 10 miles west of Manhattan, Newark hasÂ tried to
launch a large-scale economic revivalÂ for decades.
The cityÂ 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.
AmazonÂ will likely 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.”
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