The deadline for Phase I bids was October 19, 2017. A final site was planned to be selected and announced in November 2018, from a shortlist of 20 cities released in January.
By October 23, 2017, 238 proposals were submitted and received by Amazon, from cities and regions from 54 states, provinces, districts, and territories, including municipalities in all U.S. states except Arkansas, Hawaii, Iowa, Montana, North Dakota, South Dakota, Vermont, and Wyoming. The Canadian provinces of New Brunswick and Saskatchewan also had no regions submit a bid, along with the Yukon Territory.
Several cities and groups promoted their HQ2 bids by engaging in promotional campaigns and gimmicks, including offers and gifts to Amazon. Sun Corridor, a Tucson, Arizona economic development firm, sent a 21-foot saguaro cactus to Amazon in an attempt to promote the city's bid. The gift was rejected due to the company's corporate gifts policy, instead donating it to the Arizona-Sonora Desert Museum. The city of Stonecrest, Georgia, a suburb of Atlanta, voted to de-annex 345 acres (140 ha) of land for Amazon to establish its own city named Amazon around its headquarters.
There were concerns that HQ2 would drop a prosperity bomb on the winning communities.
On January 18, 2018, Amazon announced its shortlist of 20 finalists for the HQ2 bidding process. The list focuses mainly on the U.S. East Coast and Midwest, with Los Angeles the only selection from the West Coast and Toronto the only one outside of the United States.
Some of the finalists used their Amazon proposals to attract investments from other multinational corporations.
Amazon representatives began tours of its finalist cities in late February. Bidding cities also signed non-disclosure agreements with Amazon for the duration of the bid process. although the NDA did not prevent disclosure of financial incentives that cities have offered. By May 2018, Amazon representatives had visited the 20 finalist cities. In September 2018, Bezos promised a decision by the end of the year.
The selections of New York City and Northern Virginia for the HQ2 sites were confirmed on November 13, 2018. In Amazon's announcement, a joint press release was presented by the Northern Virginia bidders that Amazon's HQ2 neighborhood location would officially be renamed "National Landing", which encompasses not only Crystal City but also the nearby areas of Pentagon City and Potomac Yard. Amazon also announced that it would employ 5,000 people at a new Operations Center of Excellence in Nashville, Tennessee.
The subsidies offered to Amazon in New York include performance-based direct incentives of $1.525 billion based on whether the company created 25,000 jobs. This included a refundable tax credit through the state's Excelsior Program of up to $1.2 billion, calculated as a percentage of the salaries Amazon expects to pay employees over the following 10 years. Additionally, the Empire State Development Corporation would give Amazon a cash grant of $325 million based on the occupancy rates of HQ2 buildings over in the following 10 years. Under an agreement with New York City's government, half of the property taxes for the city's HQ2 campus would be waived, and the exempt amount would go to the city's PILOT (payment in lieu of taxes) fund to pay for infrastructure improvements in New York City. Both states proposed that Amazon be given access to a helipad, and the New York state government also promised to upgrade infrastructure in conjunction with HQ2's construction there. Officials estimated that Amazon's move would generate $27 billion in taxes for the city and state.
Amazon was said to have chosen New York City as one of the sites for HQ2 because of the city's highly skilled pool of talent; existing tech, finance, and media industries; and strong university system, including Columbia University and Cornell Tech.
After the HQ2 campus in New York City was announced, officials representing parts of Queens, such as U.S. Representative-elect Alexandria Ocasio-Cortez, Councilman Jimmy Van Bramer, State Senator Michael Gianaris, and Assemblyman Ron Kim, announced their disapproval. Ocasio-Cortez, Van Bramer, and Gianaris all expressed concern that Amazon would receive tax breaks while critical infrastructure, such as the New York City Subway, was deteriorating, and the New York City public school system and New York City Health Department were underfunded. In a Twitter post, Ocasio-Cortez raised further concerns about the affordability of housing in Queens, since housing prices around the HQ2 campus in Queens began rising in anticipation of the campus's construction. Kim and Fordham University professor Zephyr Teachout wrote an opinion piece in The New York Times in which they stated that the city should "not offer incentives and giveaways to an internet giant known for squashing small businesses."
On February 14, 2019, Amazon announced that it would cancel the planned Long Island City location due to opposition. The company also said that it would continue developing the Crystal City and Nashville locations. Bill de Blasio and Cuomo were "blindsided" by Amazon's decision when informed by Amazon VP Jay Carney. New York governor Andrew Cuomo blamed Democrats in the New York State Senate for the cancellation, and New York City mayor de Blasio said that Amazon "threw away that opportunity," by making the announcement. In response, Ocasio-Cortez stated: "If we were willing to give away $3 billion for this deal, we could invest $3 billion in our district ourselves if we want to. We could hire more teachers, we can fix our subways, we can put a lot of people to work for that money if we wanted to." Activist organizations such as Open New York also argued that, in Amazon's absence, the original plans to build 6,000 homes should be re-adopted.
Despite cancelling the Long Island City location, in December 2019, Amazon announced that it had signed a new lease for 335,000 square feet (31,100 m2) of space in the Hudson Yards neighborhood to accommodate 1,500 employees. The company already had 3,500 tech employees in the New York City area.
In February 2019, Cuomo called the cancellation the "greatest tragedy" he had seen during his tenure as governor of New York.
Virginia offered performance-based incentives which included a workforce cash grant of $550 million for the first 25,000 jobs Amazon created that paid an average salary of $150,000 by 2030. The state offered an additional $200 million for the next 12,850 qualifying jobs created by 2034. Arlington County offered an additional $23 million in cash grants, to be disbursed over 15 years, contingent on Amazon reaching a certain office size and the gradual increased revenue from a tax collected from the county's hotel rooms. The county also offered an estimated $28 million in infrastructure improvements tied to the property taxes of the Pentagon City and Crystal City area. The state's initial offer was close to $1 billion, according to the Virginia Economic Development Partnership. When Amazon told state officials they would get half of the jobs, the group decided to "essentially cut [the incentives] roughly in half."
Amazon's officials initially said it could occupy up to 8 million square feet of office space in Arlington over the course of 15 years. However, company officials told Arlington in May 2019 that Amazon would not promise anything over 4 million square feet.
Amazon moved its first employees into rented office space in the area in June 2019, and in June 2020, there were roughly 1,000 employees the company counted as HQ2 workers.
ZGF Architects led the design team, which included James Corner Field Operations and VIKA Civil Engineering and Site Design, as well as many others. In January 2020, the company, via developer JBG Smith, started construction on two 22-story towers at 1450 S. Eads St, proximate to Metropolitan Park. In September 2020, the company began the $14 million renovation of the park. By March 2023, 8,000 workers had been hired to occupy the first phase of HQ2, which has a total capacity of 14,000 workers.
An independent coffee shop and a pet care company signed leases to occupy space in the new development.
The development also includes a public art installation called "Queen City", which was designed by artist Nekisha Durrett. The installation is located in the middle of Metropolitan Park and pays tribute to a former Black community by the same name that was demolished during the construction of The Pentagon.
On February 2, 2021, the company announced a proposed design for the second phase of HQ2, PenPlace, to be developed by JBG Smith. The development includes "The Helix", a 354-foot glass nucleic acid double helix art structure with landscaped terrain that would be opened to the public, similar to "Amazon Spheres" at Doppler in Seattle. Founder Jeff Bezos commented that "The natural beauty of a double helix can be seen throughout our world, from the geometry of our own DNA to the elemental form of galaxies, weather patterns, pine cones, and seashells". The Verge described it as resembling a "glass poop emoji covered in trees."
On November 26, 2021, the FAA completed its evaluation of the proposed building and determined that the structure would not be a hazard to air traffic at nearby Ronald Reagan Washington National Airport.
The Arlington County Board approved phase two, including the "Helix" in April 2022.
In March 2023, the company delayed plans to develop the second phase of HQ2.
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