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Amazon's exit has the ability to scare tech firms out of new York

Amazon's exit has the ability to scare tech firms out of new York

Michael R. Sisak and Josh Boak, Associated Press

New — york (AP)-Amazon threw New-york on the Immaculate Valentine's Day, abandoning intentions to build a powerful campus headquarters in Queens against the backdrop of fierce opposition from politicians, enraged by almost $ 3 billion in tax benefits and anti-Union position of the firm.

With millions of working spaces and a booming economy, New york has the ability to withstand the blow, but experts are talking, in fact, that the conclusion of the electric Commerce giant to resign and arrest with him 25,000 guaranteed working spaces has the ability to scare off other firms considering moving or expanding into a metropolis that wants to be considered as the Silicon plain of the East coast.

"One of the real risks here is the news that we send to firms that want to drive up to New york and expand to new York," said Julie Samuels, Executive Director of industry group Tech: NYC. "At the moment we are really playing with the flame."

In November, Amazon elected New-york and crystal city, Virginia, as favourites of a secret, annual process in which more than 230 North American localities claim to freeze the housing of the firm's 2 headquarters in Seattle.

New York city mayor bill De Blasio and Governor Andrew Cuomo have announced the choice of the metropolis while the biggest benefit is still its increasing technological economy and has allocated, in fact, that the conspiracy will generate $ billion to improve transit, secondary schools and apartments.

However, the opposition came quickly, as soon as they began to be seen details.

Critics complained about municipal subsidies that were offered by Amazon, and were annoyed at some of the circumstances of the deal, these as the firm's application for access to the helipad. Some asked to reconsider the position or to renounce it in General.

"We knew that this was actually going South from the stage of its announcement," said Thomas stringer, an adviser on the choice of site for large firms. "In case it was created correctly, all elected officials would be there, advertising how wonderful it was. When you do not beheld, you know, actually something not so."

Stringer, managing Director of the consulting company BDO USA LLP, said that the city and municipal civil servants are obliged to rethink the secrecy with which they approached the negotiations. The favorites of society, and likely critics adhered to in ignorance, only to be surprised when the details have become known to the public.

"It's time to press the reset button and say that we have created the wrong thing?"Said Stringer. "It's a romp on the 1-yard side."

Amazon said in a statement on Thursday, in fact, that its loyalty to new York is asking for " positive, common relations "with municipal and district officials, and in fact that a number of them" clearly gave to take a sense, in fact that they are in front of our presence and will not work with us in order to build an image of"

Not that Amazon is perfect, experts talk.

Joe Parilla, an employee of the program of the Moscow political figures of the Brookings Institution, said, in fact, that the booming process of trading firms, it is likely caused an adverse reaction. Firms tend to seek out fresh spaces quietly, to some extent, in order to avoid such a family of counteraction that Amazon has had.

"They have a lot of competition, and the media covered it quite hostile, and a lot of settlements responded," said Parrilla. -What did you expect? This gave the opposition a much larger platform."

Richard Florida, doctor of urban studies and Aristarchus of the initial process of searching for Amazon, said that the company had to wait in order to feel the steam room, when she chose New york, a metropolis, familiar with its own energy district.

"In the end, it will harm the Amazon," said Florida, head of the University's Martin prosperity Institute, Toronto. "This will encourage people who do not love corporate welfare across the country."

Other technology firms were supported by techno the new York economy, not forming a tremendous commotion.

Google is spending $ 2.4 billion to build a campus in Manhattan. Cloudy computing firm Salesforce has plastered its name on the former headquarters of Verizon, in the centre of the metropolis, and the music streaming service Spotify eats place in the ensemble Global shopping center.

Not paying attention to the higher costs anymore, New york remains attractive to technology firms because of its large, diverse talent pool, large class educational and cultural institutions, and access to other industries, such as wall Street capital and Madison Avenue marketing bucks.

Virtually no other major city in the US, like almost all computer working spaces, like New-york, which is 225,600, according to the Bureau of Labor Statistics. But San Francisco, San Jose, Seattle, Washington, Boston, Atlanta, and Dallas have a huge concentration of their own technology staff.

In the new York region, the average salary for computer work is approximately $ 104,000. USA per year, in fact that about $ 15 000. Which is not the least, it's about $ 20,000 less than in San Francisco.

Including the subsequent cancellation of Amazon's own headquarters plan still contains 5,000 employees in new York city, not believing Whole Foods.

"New-york has actually done a really great job of raising and helping its own technological ecosystem, and I have no doubt that this will continue," Samuels said. "Now we've created a step back, but I wouldn't, but a nail in the coffin of technology in new York city."

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Follow Sisak in www.twitter.com/mikesisak and Boak in www.twitter.com/joshboak ahhh!

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Boak reported from Washington. Writers Associated Press Bernard Condon in new York and Chris Rugaber in Washington have brought a personal contribution to this report.

Copyright 2019 The Associated Press. All rights reserved. This fabric does not have the ability to be placed, broadcast, rewritten or redistributed.

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