The Amazon deal with new York on the construction of the headquarters of megacompanies in this metropolis, the failure of which was announced officially yesterday in the Amazon, no longer haunted by the commentators. In the heat of the three months of debate, perhaps not everyone had to know what was the conversation.
Modern new York is not a place for Amazon
As generalizes NY today.curbed, Amazon, intending to build a campus in Queens, said the creation of 25 thousand jobs directly and 40 thousand with time, with an average salary of $150 thousand During the construction was to create 1300 new jobs. Only it was about 107 thousand new places, directly or indirectly associated with the Campus or its facilities. The company was ready to consider a programme priority in hiring local residents. In particular, a compromise was reached on establishing a campus, the education center for the residents of NY, wanting to get a job here.
Thus, in the framework of the program of the mayor provides for the allocation by the city of $3-5 million for training NYCHA residents in the specialties in the field of IT with their subsequent job at Amazon. Also, the city was willing to add $ 10 million to its center JobsPlus — also for training new Yorkers with job placement in Amazon. Therefore, Amazon was not willing just to take a job as a thousand people just because of their stay in new York, but was willing to give priority to the trained specialists of various professions. Of course, it was difficult to say exactly how many jobs went to new Yorkers.
In addition to the construction of their facilities Amazon was planning to build a secondary school for 600 places, to carry out reconstruction of public space — streets, sidewalks, parks and waterfront, Anable Basin. Payment of these works were to be carried out using the urban programme PILOT about $ 500-600 million. Another $46 million Amazon had to spend on upgrading Sewerage and water supply, $ 60 million for a new school and a new stop on the long Island railroad, and $ 180 million on various development programs space in long island city.
Long Island City, where Amazon is not moving. It’s important to stop gentrification. pic.twitter.com/DVK6sbUNQz
— Wojtek Kopczuk (@wwwojtekk) February 15, 2019
In total it was planned that the Amazon for 25 years and will pay NY $ 27 billion in taxes. The staff was ready to give Amazon $ 1.7 billion in grants and tax incentives. The city was ready for a number of articles also to Finance the deal. In total, the government spent or less would be tax — $ 3 billion financial experts believe that the ratio of the 3 billion to 27 billion, or 1 to 9 is quite favorable.
It is not obvious, but possible advantages for new York attributed the possible rise of the real estate market. The news about the plans of the transaction significantly revived the market, especially long island. It is clear that the arrival of the headquarters of the giant would attract to the city many companies are smaller, which need to be near a large partner. The fact of leaving Amazon will have the opposite effect, according to the Agency StreetEasy.
Dmitry Stasyuk
Real Estate Broker Associate at Evans Real Estate
Real estate expert in new York from Evans, Mr Stasiuk, however, is not inclined to dramatize the real impact on the real estate market, as the prices have just not had time to rise. «The decision by Amazon to build an office in new York was unexpected. At least this nobody was prepared and nobody expected, — explains Dmitry Stasiuk USA.one, After the announcement of the construction of the office real estate demand in the area increased dramatically, but prices did not manage particularly affected. Still, the cycle of purchase-sale of immovable property shall be calculated for weeks or even months. That is why the failure of the Amazon, its plans would not affect the local real estate market. Perhaps that will break the dream of some property owners in the area to earn in the future.»
Are 25 Thousand New Jobs (Plus Thousands of Ancillary Jobs) Not a Good Idea For The Ppl Of NY⁉app
— Cher (@cher) February 15, 2019
In General, the situation with Amazon is not very well characterizes new York from the point of view of investors as a litmus test. Twenty years ago this megamonstr global business would simply need to be based in NY metropolis. The cancellation of the transaction suggests that the city has changed. Today around breaking deals there are plenty of comments from politicians and economists that have already joined and the arts. Cher, known for his support of the progressives, however, questioned the correctness of the approach to Amazon.
