Reports of Amazon's HQ2 Split Raise Questions about Financial Incentives
*By Amanda Weston*
Reports that Amazon may split its new headquarters between two locations is raising questions about the financial incentives offered by those cities bidding to become the new hub.
“One of the questions that I’m left with following this reporting that there might be two cities instead of just one ... is whether this will change the incentives that some of the cities are offering in their draft plan,” Axios reporter Shannon Vavra told Cheddar Tuesday.
The New York Times [reported Monday](https://www.nytimes.com/2018/11/05/technology/amazon-second-headquarters-split.html) that Amazon ($AMZN) plans to split the much-anticipated HQ2 between the Long Island City neighborhood of Queens, N.Y. and Washington, D.C. suburb Crystal City, Va.
“For instance, does it make it like less of an incentive for Amazon to go to New York because instead of offering 50,000 jobs, they’ll only be able to offer about 25,000 jobs? Does that change the incentive exchange there?”
The Times also reported New York offered Amazon potentially hundreds of millions of dollars in subsidies. Governor Andrew Cuomo said he is doing everything he can to encourage the deal and called the incentive package “great.”
Maryland has offered incentives added up to about $8.5 billion, [according to The Washington Post](https://www.washingtonpost.com/local/amazon-in-advanced-talks-about-putting-hq2-in-northern-virginia-those-close-to-process-say/2018/11/02/9be831d6-d7c0-11e8-aeb7-ddcad4a0a54e_story.html?utm_term=.57bfd1f1e799).
The Wall Street Journal [wrote Monday](https://www.wsj.com/articles/amazon-plans-to-split-hq2-evenly-between-two-cities-1541446552?mod=hp_lead_pos1) the decision to split HQ2 is to give Amazon the opportunity to hire more top tech talent in both areas. It also reduces impacts on housing and transit with only 25,000 employees in each city versus 50,000 in one.
“The reason they’re looking for a second headquarters is because they weren’t able to keep up with the capacity that local talent was able to offer at the time,” Vavra said of Amazon’s main Seattle location.
Amazon already has a presence in both alleged HQ2 cities. Vavra said there are currently about 1,000 employees in New York and 2,000 in the Arlington and D.C. area.
“There’s also a lot of folks online who are giving Amazon flack for not necessarily considering cities and locations that are more rural and considered mid-America where a job injection could be particularly helpful,” Vavra said.
Amazon has not confirmed any of the reports. The Journal reported Amazon could announce its choice ー or choices ー as early as this week.
For full interview [click here](https://cheddar.com/videos/a-tale-of-two-hq2-cities).
Keith Barr, CEO of InterContinental Hotel Group, says he is expecting an 'incredible' summer for his business as pandemic conditions have normalized and people are ready to travel.
Dann Ryan, Chief Investment Officer at Sincerus Advisory, discusses what drove markets lower on Wednesday, as well as what investors are anticipating when it comes to the upcoming CPI report and Fed decision.
U.S. stocks close Tuesday at session highs after a subpar start to the trading day. Tim Chubb, Chief Investment Officer at the wealth advisory firm, Girard, joins Cheddar News' Closing Bell to discuss. 'We're starting to see the moderation of three core things -- we've seen the moderation of prices, we've seen the moderation of wage growth we've seen in the labor market, and we've also seen a moderation of job openings,' he says.
The victims from the USA gymnastics sexual abuse scandal continue to seek justice. Survivors of Larry Nassar are seeking more than one-billion dollars from the FBI for failing to stop the convicted sports doctor when the agency first received allegations. According to a report released by the Justice Department's Inspector General, FBI agents knew
in July of 2015 that Nassar was accused of abusing gymnasts; however, Nassar wasn't arrested until December of 2016. The group that filed the claim includes Olympic medalist Simone Biles and around 90 other women. Louise Radnofsky, sports reporter at The Wall Street Journal, joins Cheddar News' Closing Bell to discuss.
A controversial professional golf tour backed by Saudi Arabia tees off on Thursday. Today, two-time Major winner Dustin Johnson announced he's resigned from the PGA Tour ahead of headlining the Saudi-backed tour, called the LIV Golf Invitation Series. The announcement comes as the PGA tour has threatened disciplinary action for its golfers who take part in the Saudi golf league event, which will also feature notable golf stars like Phil Mickelson and Sergio Garcia; however, LIV Golf's CEO, Greg Norman, told The Washington Post that Tiger Woods rejected a contract worth 'high nine digits' to play in the tour. Chris Bumbaca, reporter for USA Today Sports, joins Cheddar News' Closing Bell to discuss.
CreditCards.com senior industry analyst Ted Rossman compares the Apple Pay Later offering to similar four-step processes at Affirm and Klarna, and says this is a way for the tech giant to dive deeper into the financial industry.
Tech analyst Rene Ritchie discusses new EU legislation that will force iPhones to use a USB-C charger in fall 2024 and what that means for Apple's strategy in Europe.
Catching you up on the stories you need to know this morning, mass shooting victims testify on Capitol Hill, the White House outlines its plan to vaccinate kids younger than five years old, and we break down how to protect yourself from monkeypox.
