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Richmond98

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I am a NJ native - grew up 10 minutes from downtown Newark - and I must say that this falls under the "some things just can't be bought" category.    It smells like a classic northern NJ "deal":


 

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Newark, New Jersey is determined to get Amazon's new headquarters. So determined, it's willing to offer up $7 billion in tax incentives.

Dozens of cities are vying for the economic benefits that would come with playing host to Amazon's second U.S. headquarters, adding to its original HQ in Seattle. Newark's offer is one of the most extreme—and serious. Amazon set Thursday as the deadline for cities to make their final offers.  

The city, which has struggled over the past 50 years but is also home to a growing downtown and business district, would offer $7 billion in combined state and city tax incentives. Newark is New Jersey's official pick for its bid, with the support of Republican Gov. Chris Christie.

"We have exactly what Amazon is looking for, in terms of expanding their company in a city that will help them grow and where it would have real social impact,” Newark Mayor Ras J. Baraka told the New York Times. “Newark is an opportunity to make a real statement, about what they’re trying to accomplish in the United States in the age of Trump.”

Newark is close enough to New York—18 minutes by train to midtown, the city boasts—but much less expensive. New York fulfills most of Amazon's demands, including a metro area of at least a million people, proximity to an international airport, and access to mass transit, experts told the New York Times. Newark has basically the same stuff, but stands to benefit more immediately from Amazon's $5 billion investment and 50,000 new jobs.

Its $7 billion in incentives is made up of $5 billion in state tax breaks over the next 10 years after Amazon creates its promised 50,000 jobs; a property-tax abatement worth $1 billion offered by the city; and $1 billion by waiving the city's local wage tax for Amazon's new Newark employees.

 

 

Couple immediate things stand out: 

a.) that is a flat-out lie about 18 minutes to NYC.  Yeah, if you are using a Jetsons-style hover craft maybe.  It takes 20 minutes to get through the Lincoln tunnel on a good day during work or entertainment hours.   That's a 40 minute trip MINIMUM during any normal traffic time of day.

b.) "after Amazon creates its promised 50,000 jobs" - when did Amazon promise this?  I read the RFP...didn't get that.  Does NJ think Amazon is going to take kindly to this type of holding-incentives-hostage criteria?

c.)  $1billion waiving the local wage tax...I don't know but I bet there is some stipulation that these folks must live in Newark and even if not that number is likely tied to 50k jobs threshold...

d.) Anyone drive around Newark over the past...um, forever?  Congestion is abysmal.

e.) "Much less expensive".....than one of the most expensive Cities in America?  WTF is that saying? Like bragging about your dog being the biggest tea-cup chihuahua.

....any thoughts?

 

 

 

 

  • Haha 1

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a) Ahaha I kind of laughed at the 18 minutes to midtown part. I mean are they talking about the PATH train? The train that closes at really inconvenient times? I can't count the number of times I've run into people from NJ in midtown looking for the PATH only to find it closed and the trains not running. 

Wait, the Path doesn't even go to midtown from Newark, you'd have to change trains in Jersey City I think...

b) everything I've seen about the jobs numbers carefully says "Up to 50k jobs", not promising 50k jobs or factually stating there will be 50k jobs, just the possibility of Up To 50K jobs.

c) I'm no tax expert or anything, but does the 7 billion in tax incentives for 5 billion in investment add up? You'd need the new employees and growth to come up to 2 billion in taxes just to break even..

d) classic NJ, don't feel bad though NYC isn't much better

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17 minutes ago, meegwell said:

I am a NJ native - grew up 10 minutes from downtown Newark - and I must say that this falls under the "some things just can't be bought" category.    It smells like a classic northern NJ "deal":


 

 

Couple immediate things stand out: 

a.) that is a flat-out lie about 18 minutes to NYC.  Yeah, if you are using a Jetsons-style hover craft maybe.  It takes 20 minutes to get through the Lincoln tunnel on a good day during work or entertainment hours.   That's a 40 minute trip MINIMUM during any normal traffic time of day.

b.) "after Amazon creates its promised 50,000 jobs" - when did Amazon promise this?  I read the RFP...didn't get that.  Does NJ think Amazon is going to take kindly to this type of holding-incentives-hostage criteria?

c.)  $1billion waiving the local wage tax...I don't know but I bet there is some stipulation that these folks must live in Newark and even if not that number is likely tied to 50k jobs threshold...

d.) Anyone drive around Newark over the past...um, forever?  Congestion is abysmal.

e.) "Much less expensive".....than one of the most expensive Cities in America?  WTF is that saying? Like bragging about your dog being the biggest tea-cup chihuahua.

....any thoughts?

 

 

 

 

I am not too worried about Newark.  If Amazon was going to make a greater New York move, Brooklyn or Queens would be the places to beat.  Many eastern metros surpass Newark in their offerings (especially DMV and Atlanta) without the issues associated with Newark.

This is pure speculation, but I think that Amazon is looking to be the biggest show in town, not another major player in an ocean of major players.

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22 minutes ago, Wahoo 07 said:

This is pure speculation, but I think that Amazon is looking to be the biggest show in town, not another major player in an ocean of major players

Me too.  And looking for a place that, on the scale of Chill < to > Up Tight....would be much closer to Chill....:)

 

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3 minutes ago, meegwell said:

Me too.  And looking for a place that, on the scale of Chill < to > Up Tight....would be much closer to Chill....:)

 

Agreed.  Given the tech related developments in town recently, if Amazon chooses Richmond, we may have to re-brand the region the Silicon South!

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