*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).

Share:
More In Business
Why it Pays for Businesses to Prioritize Sustainability
Pamela Rucker, CIO Advisor and Instructor for Harvard Professional Development, joins Cheddar to discuss how perceptions of Environmental, Social, and Governance–or ESG–changed over the past couple of years, and how using machine learning and artificial intelligence could pave the way to a more sustainable future.
Miga Health Raises $12 Million to Combat Heart Disease
Dr. Jarrad Aguirre, Co-Founder and CEO of Miga Health, joins Cheddar News' Closing Bell, where he says his company is looking to establish the future of heart health and points to how 80% of premature heart attacks and strokes are preventable.
Walmart and DroneUp Partner to Deliver Packages by Air to 4 Million Households
DroneUp is partnering with Walmart in a program to expand its drone delivery service to reach 4 million households. CEO Tom Walker joined Cheddar News to discuss the state of drone delivery regulations and the acceptance of the service so far. "I think they're going into this, there was obviously, and appropriately, some concerns of noise and, and the drones flying over, and the safety, and would it become an annoyance. And then on the retail side, would the customers really adopt this and embrace it as a new method for delivery," he said. "So we've seen really significant and positive embrace of this new delivery model."
Load More