Governor Cuomo Continues Efforts for Amazon HQ2
The governor has been speaking with Amazon, and politicians and business leaders published an open letter in The New York Times asking Jeff Bezos to reconsider the withdrawal of the headquarters from LIC, Queens.
NEW YORK CITY—Governor Andrew Cuomo has had private conversations with Amazon executives including Jeff Bezos but if the e-commerce behemoth is reevaluating its decision of a Long Island City, Queens HQ2, it’s keeping a poker face. On Friday, the governor told WNYC radio host Brian Lehrer “They have given no indication that they would reconsider.” An Amazon spokesperson tells GlobeSt.com that the company is declining to comment.
Earlier in the morning approximately 80 politicians, business executives, academic administrators, union leaders and representatives of non-profits wrote an open letter to Jeff Bezos published in The New York Times. Stating New Yorkers wanted the 25,000 permanent jobs, 11,000 construction and union maintenance jobs, and $28 billion in tax revenue, expected with the new campus, the letter urged him to bring the HQ2 to New York City.
“We know the public debate that followed the announcement of the Long Island City project was rough and not very welcoming. Opinions are strong in New York—sometimes strident. We consider it part of the New York charm! But when we commit to a project as important as this, we figure out how to get it done in a way that works for everyone.”
The governor told Lehrer the point was not that Amazon was going to change its mind—he didn’t think they would. But the message was a public affirmation of welcoming businesses to New York.
He explained, “We don’t want anyone to think that New York doesn’t understand that we are the home of entrepreneurial business, and we want young people coming here and new talent. And New York is open for business. That is what we are. We’re the commerce capital of the country.”
Cuomo said, “I have no reason to believe that Amazon is reconsidering. Would I like them to? Certainly, but I have no reason to believe that.” The governor however emphasized they wanted businesses nationwide to know what happened was an oddity.
“Don’t think that if you come to New York the same thing is going to happen that happened to Amazon.” He called what occurred “a mistake” and “a blunder.” The governor faulted “a small, minority” and “local, petty politics that governed the day.”
Opponents of the Amazon project including State Senator Michael Gianaris, voiced concerns that the company’s effects on increasing housing costs would drive out long-term residents. Such issues as well as homelessness and tax disputes in Seattle relating to the company’s presence had been documented by news outlets including CNN and Bloomberg. Those protesting an Amazon arrival also questioned whether the $3 billion in tax breaks were necessary and could have been money used for services such as strengthening infrastructure, transportation, housing or other public needs.
The New York Times reported Andrea Stewart-Cousins, the state senate majority leader, withdrew her nomination of Sen. Gianaris to sit on the Public Authorities Control Board. The position would have given Gianaris the ability to veto Amazon’s project. The paper wrote that Gov. Cuomo refused to appoint or reject him, so last week Stewart-Cousins selected State Senator Leroy Comrie for the board position, a person more likely to get the governor’s approval.
The state budget director Robert Mujica issued a letter on Friday afternoon, sent to the press in strong support of bringing the internet/media company to New York. He stated Amazon planned to build the headquarters with union jobs and pay the city and state $27 billion in revenues creating 25,000 to 40,000 jobs. With these calculations, Mujica described the $3 billion in tax relief as a nine to one return on investment.
Politicians who opposed Amazon including Senator Gianaris, City Council Speaker Corey Johnson, Councilman Jimmy Van Bramer and Congresswoman Alexandra Ocasio-Cortez wanted a closer examination of corporate tax breaks. Although in many business communities this had been dismissed as a lack of understanding incentives, some policy wonks say the issue warrants debate which is healthy for a democracy. On Feb. 14, after Amazon rescinded its decision, governing.com published an article “With Amazon Out of New York, Some Lawmakers Seek Multistate Ban on Corporate Tax Breaks.” It noted that a half-dozen states were considering a compact where they would agree to end efforts to lure companies with tax incentives that can result in “bidding wars” at the tax payers’ expense.
The article stated opponents of tax incentives cite data that suggests they often are not worth what they cost the government. Although each business and deal requires individual analysis, one of the objections to the Amazon deal was its non-disclosure agreement. The open letter stated Mayor de Blasio would work with the governor to manage the community development process to ensure benefits to residents and small businesses in the community. The mayor’s office did not respond to GlobeSt.com’s inquiry about the letter or the mayor’s role by this reporter’s filing deadline. This article will be updated if information is provided.
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