Following backlash, Amazon decides to cancel second headquarters.
Amazon is pulling out of plans to build its new corporate headquarters in New York City, pointing the figure at state and local politicians who had opposed the company’s headquarters plans, according to a report by NBC News.
The e-commerce giant had planned to construct its widely-courted new headquarters in Queens after being promised $3 billion in incentives from both the state and city. Those large incentives triggered a backlash among some local residents.
Activists had protested against the new headquarters, citing congestion issues, gentrification and a potential increase in local housing costs, as well as worries the new jobs wouldn’t go to local residents.
The Verge reported that absent local support, Amazon faced legal battles as well as zoning board red tape that were threatening to delay the project.
“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,” the company told NBC News.
NBC News reported that Amazon does not have plans to reopen the search for a new HQ2 location at this time, instead focusing on creating previously announced expansion plans in northern Virginia and Nashville.