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Amazon Scraps Plan for New York HQ2 in Stunning Reversal

Posted February 15, 2019

Under Economic Issues, Logistics & Supply Chain Issues

(Spencer Soper – Bloomberg) Inc. said it’s axing plans to build a new corporate campus in New York City, bowing to fierce opposition from some residents and politicians and denying the city what the mayor and governor had called its biggest ever economic win.

New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio lobbied hard to bring the deal to the city, with the governor even jokingly offering to change his name. They touted the promise of as many 40,000 jobs in the city over the next two decades with an average salary of US$150,000.

But local opposition was fierce from the beginning. Lawmakers resented being excluded from negotiations for the deal, and decried the US$3 billion in government subsidies offered to a company run by the world’s richest man, while the city itself is facing budget cuts. Community groups feared rising rents in the neighbourhood would push out long-time residents, and that the influx of workers would strain an already overburdened subway system. Click here to read more.