Following word by Amazon that it was pulling the plug on its planned headquarters in the New York City area, reactions were quick including concerns by some that the resistance by many downstate leaders will further an image that all of New York State is an unfriendly environment in which to pursue new business opportunities.
Long Island City, located within Queens, was one of two locations chosen by Amazon for its HQ2 project, which promised the gradual creation of 25,000 jobs, ending a competitive process that received bids from numerous US markets, including Western New York.
Now, with Amazon walking away from its multi-billion dollar deal, many believe New York State has only furthered a reputation as an unfriendly environment in which to do business.
"There can be no question," said State Senator Robert Ortt, a Republican from North Tonawanda. "This was such a public process. It was a national competition. This is going to be reported on. This is one of the one of the most innovative, largest companies in the world today."
There's also lamenting about the lost tax revenue that would have come from Amazon, once its New York operation was opened. Ortt tells WBFO although there many conditions that he didn't like, Western New York would have enjoyed some degree of benefits.
"Some of that revenue, both from the jobs and from Amazon's sales tax revenue and (proprety) tax revenue, would have gone into state funds. Those funds find their way back to fund our schools, even up here in Western New York, also roads or things like that," Ortt said.
But critics of the deal say the billions of dollars worth of tax incentives offered by New York State amounted to a corporate welfare giveaway to a company headed by a man already billions of dollars wealthy.
Erie County Executive Mark Poloncarz acknowledged the good and bad with Amazon's pullout, including lost jobs, but said companies coming to do business need to understand that if they are to take tax breaks, they must be committed to giving something back to the community. In Erie County, he says, that includes signing an agreement by which the business loses its tax incentives if it fails to create the jobs promised. Other conditions include ensuring women and men are paid the same wage for the same work and guaranteeding local construction workers are hired to build the new facility.
"I think businesses need to understand it's a different climate and just the handouts of the past don't exist anymore," he said. "We demand a bargain for our tax incentives and the people in New York City, some of them thought it was a bad deal, others thought it was a good deal. I was a little surprised that they were pulling out already. I thought Amazon was strong enough to say we're still going to do this but they didn't and we'll see where it all goes."
Downstate, the resistance to the Amazon deal came from leaders including Republicans, Democrats and progressives.
State Senate Deputy Leader Michael Gianaris, a Democrat whose district includes Long Island City, suggests Amazon has concentrated so much power that "it thinks they can dictate to states and cities what they're allowed to tell their people, how much money of theirs they want to take to grace us with their presence and without any consideration of the communities that their presence would affect, " Gianaris said.
He and others claim Amazon's presence would have caused infrastructure problems as well as a housing crisis, the latter sparked by rising property values and, in turn, rents in an already expensive city in which to live.
US Representative Alexandria Ocasio-Cortez was among the progressives celebrating Amazon's pullout.
Anything is possible: today was the day a group of dedicated, everyday New Yorkers & their neighbors defeated Amazon’s corporate greed, its worker exploitation, and the power of the richest man in the world. https://t.co/nyvm5vtH9k
— Alexandria Ocasio-Cortez (@AOC) February 14, 2019
Buffalo, in partnership with Rochester, was one of numerous cities which submitted a bid with the hope of securing Amazon's ambitious second headquarters.
Invest Buffalo Niagara, which worked with Rochester counterparts on the Western New York bid, issued the following written statement: "We commend Governor Cuomo and Empire State Development for the hard work and professionalism that was on display throughout the Amazon HQ2 proposal process. Regardless of outcome, a compelling case was made to Amazon leadership illustrating why New York State was an excellent expansion opportunity for the company.
"From a local perspective, Invest Buffalo Niagara remains laser-focused on our mission to attract new businesses to the Buffalo Niagara region and we remain excited about our own prospects currently in the pipeline."
Governor Cuomo blamed the New York State Senate for leading the resistance which lef Amazon to pull out of its HQ2 plan. He issued the following statement: "Amazon chose to come to New York because we are the capital of the world and the best place to do business. We competed in and won the most hotly contested national economic development competition in the United States, resulting in at least 25,000-40,000 good paying jobs for our state and nearly $30 billion dollars in new revenue to fund transit improvements, new housing, schools and countless other quality of life improvements. Bringing Amazon to New York diversified our economy away from real estate and Wall Street, further cementing our status as an emerging center for tech and was an extraordinary economic win not just for Queens and New York City, but for the entire region, from Long Island to Albany's nanotech center.
"However, a small group politicians put their own narrow political interests above their community -- which poll after poll showed overwhelmingly supported bringing Amazon to Long Island City -- the state's economic future and the best interests of the people of this state. The New York State Senate has done tremendous damage. They should be held accountable for this lost economic opportunity.
"The fundamentals of New York's business climate and community that attracted amazon to be here - our talent pool, world-class education system, commitment to diversity and progressivism - remain and we won't be deterred as we continue to attract world class business to communities across New York State."
However, New York State Republican Chairman Ed Cox puts the blame directly on Cuomo for helping to create the offer that would create enough resistance to ultimately kill the deal.
Cox released his own written statement: "Amazon pulling out of New York is an unfortunate result of the poor leadership and bad economic policies of this state. It should have come as no surprise that this deal, driven in secret by Governor Cuomo and Mayor de Blasio, which offered billions in corporate welfare and other perks, was met with concern and opposition when it was rammed down everyone’s throats. If New York didn’t have one of the worst business climates in the country, we would have been able to attract Amazon-- and many other companies-- on the merits of our economy. Until we have a governor and legislature who are serious about reversing the state’s economic decline and making us competitive again, we are going to continue to lose jobs and people to other states. This should be a huge wake-up call."
Arlington, Virginia is the second market that was awarded a piece of Amazon's HQ2 last fall. The company says it has no plan to reopen bidding to replace New York City.
Amazon also runs a distribution warehouse in Lancaster, New York.
