Amazon’s plan for a second headquarters split between Long Island City in New York and Crystal City in Northern Virginia were complicated on Thursday, when the Seattle-based internet retailer announced suddenly that it’s pulling the plug on the planned campus in New York.
But Virginia officials say the impact of Amazon’s decision isn’t likely to impact the future campus in National Landing, the new Amazon-centric neighborhood composed of parts of Pentagon City, Crystal City and Potomac Yard in Alexandria.
“After speaking with an Amazon representative earlier today, we have confirmed that we are moving forward as planned with Amazon’s upcoming headquarters in Arlington—nothing has changed,” said Christian Dorsey, the chair of the Arlington County Board.
In its statement, Amazon said it was abandoning its plans for Long Island City because of growing opposition, including among some elected officials.
“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. While polls show that 70% of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City,” said the company in a statement.
But in that same statement, Amazon would only say that “it will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the U.S. and Canada.”
Local officials say the impact on Virginia will be negligible, if there is any impact at all, because of the deal the company signed with the commonwealth last year.
“Amazon’s announcement today will not impact the [agreement] or related enabling legislation in Virginia associated with the Amazon HQ2 project,” said Stephen Moret, president of the Virginia Economic Development Partnership.
And that’s because while Amazon’s plans for Crystal City were always premised on the company hiring 25,000 workers, the deal it signed with Virginia actually allows it to grow to 37,850 employees by 2038.
The $750 million incentive package—signed into law by Gov. Ralph Northam earlier this month—is structured so that the company will be eligible for $550 million in financial incentives for the first 25,000 workers and another $200 million for the 12,850 workers hired thereafter.
Under the agreement signed with Virginia, Amazon plans to phase in its hiring for its new campus in National Landing. Some 400 employees are expected to be hired this year, ramping up to a maximum of 3,000 employees in both 2027 and 2028.
JBG Smith, the largest property owner in Crystal City and a partner to Amazon in building out its second campus, declined to comment on the possible impact to Northern Virginia.
Arlington County has yet to approve its own incentive package for Amazon, which includes $23 million paid over 15 years—provided the company meets occupancy targets—along with tens of millions more for infrastructure improvements.
“Our current schedule is for the County Board to consider the performance incentive agreement in March, which includes 25,000 new jobs and 4 million square feet of office space,” said Dorsey. “Arlington, and the entire region, are still honored that Amazon recognized this region as a top area for businesses and workforce talent and selected us as a site for its headquarters expansion.”
Opposition to Amazon in Northern Virginia has been more limited than it was in New York City. Locally, elected officials have remained supportive of the new campus in National Landing. Amazon has also worked to address concerns over its impending arrival, saying this week that it would be willing to sign an agreement with labor unions that would be responsible for building out the new campus.
In a poll conducted in December, 68 percent of Virginians said they supported bringing Amazon to the commonwealth, while 30 percent were opposed.
“We are excited that Amazon’s plans for Virginia remain in place and that we can continue working together to position Virginia’s dynamic tech sector for healthy, sustained, statewide growth,” said Moret.
This story originally appeared at WAMU. It has been updated
Martin Austermuhle
Ally Schweitzer