Amazon cancels New York headquarters plan after backlash from city residents and politicians

Amazon has dropped its plans for a major new HQ in New York after backlash from residents nearby the proposed site over tax breaks offered to the company.

The online retailer had proposed to build a $2.5billion premises in Long Island City, Queens, but residents and politicians alike expressed reservations over the plans.

As part of this plan, there were to be around $2.8billion in state and city incentives for the business.

Announcing the end of the plans, a statement from Amazon said: “After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens.

“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.

“We are disappointed to have reached this conclusion—we love New York.”

Amazon had announced in November it had chosen the area for one of two new headquarters, with the other to be in northern Virginia.

The end of the plans, which would have created some 25,000 jobs, were a blow for Governor Andrew Cuomo and Mayor Bill de Blasio, who had both lobbied in support of the project and competed against 200 metropolitan areas to secure it in the city.

The governor and the mayor had argued Amazon would transform the Long Island City neighbourhood into a high-tech hub and would spur economic growth.

Gov Cuomo complained in a statement Thursday that "a small group of politicians put their own narrow political interests above their community."

In its announcement, Amazon said it has 5,000 employees in the city and plans to increase that number though it does not plan to look for another headquarters location at this time.

It will continue with its move to build new offices in Arlington, Virginia, and Nashville, Tennessee.

Democratic Rep. Alexandria Ocasio-Cortez, welcomed the abrupt end of the plans.

She said: "Today was the day a group of dedicated, everyday New Yorkers and their neighbours defeated Amazon's corporate greed, its worker exploitation, and the power of the richest man in the world.”

Amazon faced fierce opposition over tax breaks, with critics complaining the project was an extravagant giveaway. Those opposed to the plan argued it would not provide much direct benefit to most New Yorkers.

The list of grievances against the project grew over months with critics complaining about Amazon's stance on unions and some Long Island City residents fretting that the company's arrival would drive up rents and other costs.