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Amazon’s New York HQ2 Cancellation: Why Reaction Was Mixed

Amazon’s canceled Long Island City headquarters promised projected jobs and investment, but drew criticism over incentives and neighborhood effects. The benefits were never delivered.
From TheFinanceBase Team3 min to read
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Amazon’s February 14, 2019 decision to abandon its planned Long Island City headquarters was a setback for the company’s New York expansion, but whether it was a “big win” or “big loss” depends on which costs and benefits readers weigh. Amazon had projected thousands of jobs, major investment and tax revenue; critics questioned the incentives and potential neighborhood effects. Those benefits were projections, not outcomes: Amazon canceled the plan before the proposed headquarters was built.

What Amazon canceled

Amazon had selected Long Island City, Queens, as one of two planned headquarters locations, alongside Northern Virginia. On February 14, 2019, it announced that it would not proceed with the New York plan. The company also said it did not intend to reopen the HQ2 search at that time. Amazon’s statement announced the withdrawal and explained its position.

What New York stood to gain—and what remained uncertain

When Amazon announced its selection in 2018, it projected more than 25,000 full-time jobs, approximately $2.5 billion in investment, and more than $10 billion in incremental tax revenue for New York over 20 years. The company also described proposed employment and training initiatives. These were estimates and plans tied to the proposal, not benefits delivered after the cancellation. Amazon’s selection announcement set out the projections.

New York City’s informational notice described the proposed local initiatives and public-benefit claims. Because the headquarters plan was canceled, the projections alone do not establish what the project would ultimately have delivered—or whether its public benefits would have outweighed its costs.

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Why reaction was divided

Supporters saw jobs and investment

Supporters focused on the prospect of a large employer bringing jobs and investment to the city, along with projected tax revenue. From that perspective, losing the proposed headquarters meant losing a chance at economic activity and employment.

Critics questioned incentives and neighborhood effects

Opponents challenged the incentive package and raised concerns about how a major development could affect the neighborhood. Those concerns were distinct from whether Amazon might create jobs: support for the proposal and views on the incentives were separate questions.

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The Congressional Research Service characterized the reaction to the announcement as mixed, reflecting these competing arguments rather than a single public verdict. Its account of the cancellation describes the proposal and the response.

What Amazon said about its decision

Amazon attributed its withdrawal to its view that a headquarters required cooperation from elected officials. In its February 14, 2019 statement, the company wrote: “For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term.” It said some officials opposed its presence and would not work with the company to develop those relationships. That was Amazon’s stated explanation, not an independent finding about the causes of the cancellation.

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Were New Yorkers for or against the plan?

A Siena College Research Institute poll, reported by amNewYork in 2019, found that 56% of 778 New York State residents surveyed supported the plan and 36% disapproved. The figures describe that statewide survey sample; they are not a poll of Long Island City residents or a measure of what every New Yorker thought. amNewYork’s report gives the poll results.

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So was the cancellation a win or a loss?

It was a loss for the specific expansion Amazon had proposed and for those who wanted the projected jobs and investment. For opponents concerned about incentives or neighborhood impacts, the withdrawal avoided proceeding with a contested plan. Since the project did not go forward, the promised economic benefits were never realized, and the available projections do not settle the proposal’s overall cost-benefit balance. The clearest answer is that the cancellation produced a mixed reaction because people weighed different potential gains and risks.

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  • Alexa is happy to help – Ask Alexa for weather updates and to set hands-free timers, get answers to your questions and even hear jokes. Need a few extra minutes in the morning? Just tap your Echo Dot to snooze your alarm.
  • Keep your home comfortable – Control compatible smart home devices with your voice and routines triggered by built-in motion or indoor temperature sensors. Create routines to automatically turn on lights when you walk into a room, or start a fan if the inside temperature goes above your comfort zone.
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  • Say goodbye to drop-offs and buffering - With eero Built-in, Echo Dot doubles as a mesh wifi extender, adding up to 1,000 sq. ft. of wifi coverage to your existing eero network.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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