Amazon will create 25,000 to 40,000 new jobs and invest more than $3.6 billion over 15 years
NEW YORK – Mayor Bill de Blasio and Governor Andrew M. Cuomo today announced that Amazon, the world leader in e-commerce and cloud computing, will establish a new corporate headquarters in Long Island City, Queens. The decision followed a comprehensive, yearlong selection process during which 238 cities across North America competed for the multibillion-dollar project.
In 2019, Amazon will occupy up to 500,000 square feet at One Court Square while working to construct four million square feet of commercial space on Long Island City’s waterfront over the next 10 years, with expansion opportunities for up to 8 million square feet over the next 15 years. Through a $3.6 billion total investment, Amazon will draw from the diverse and talented workforce in New York State to fill at least 25,000 new jobs by 2029 and up to 40,000 jobs by 2034 with an average salary of $150,000. The construction is expected to create an average of 1300 direct construction jobs annually through 2033. Overall, the project is estimated to create more than 107,000 total direct and indirect jobs and over $14 billion in new tax revenue for the state and a net of $13.5 billion in city tax revenue. The project provides a 9:1 return on investment.
“With an average salary of $150,000 per year for 25,000 new jobs, Amazon is creating in Queens,” Governor Cuomo said. “Economic opportunity and investment will flourish for the entire region. Amazon understands that New York has everything the company needs to continue its growth.”
According to an economic impact study by REMI, Inc., a world leader in dynamic forecasting and policy analysis, the Amazon project will generate over $186 billion in Gross State Product for the New York State economy over the initial 25 years. REMI also projects over $14 billion in total new tax revenue for the state, with annual revenues growing from $10.8 million in 2019 to nearly $1 billion in 2043. The city forecasts a net of $13.5 billion in total new tax revenue.
The city-state agreement with Amazon includes commitments to build a jointly funded 10,000-square-foot on-site employment center to connect local residents with jobs and training. A $15 million investment will expand the JobsPlus program to Queensbridge Houses and expand tuition-free tech training to its residents—serving nearly 1,800 residents over the next 10 years.
The agreement also secures a new approximately 600-seat intermediate public school, a 3.5-acre waterfront esplanade and park, and the establishment of a Long Island City Infrastructure Fund to invest 50 percent of the project’s PILOT proceeds to deliver on transportation and other neighborhood priorities that will be identified in collaboration with the local community.
To bring this transformational, multibillion-dollar project to New York, the state offered a package of performance-based incentives totaling $1.705 billion. The package includes $1.2 billion in tax credits through the Excelsior Jobs Program, which is directly tied to Amazon’s commitment to create 25,000 new jobs and no less than $2.3 billion investment over ten years as well as a $505 million capital grant that is directly tied to Amazon’s commitment to invest $3.6 billion and create up to 40,000 new jobs over 15 years.
Additionally, the company, state and city are committing $15 million – $5 million each – to create new workforce development programs focused on technology training and recruitment specific to New York City and targeted toward underrepresented segments of the workforce. Programs supported by this initiative may include community-based accelerated technology training programs, internships and work-based learning opportunities for high school students.
Under preexisting as-of-right programs authorized by law, Amazon is eligible for a partial property tax abatement through ICAP and an annual credit of $3,000 for twelve years per eligible employee under REAP, a program available to all companies to encourage job growth outside of Manhattan. REAP benefits for Amazon’s 10-year expansion are projected at $897 million through 2038, and ICAP will abate approximately $386 million.
With its organic growth, wealth of local talent and inherent global assets to foster innovation, Queens offers a dynamic mixed-use community where workers can live, ideas can synergize and businesses can flourish. New companies should take note, however, that New York is a union town. I have full faith that the city and state will be able to resolve all outstanding issues including organized labor, infrastructure and capacity concerns,” said Queens Borough President Melinda Katz.