New Amazon lease for NY space renews debate over failed deal

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New Amazon lease for NY space renews debate over failed deal
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Amazon says it has signed a lease for a new office space in Manhattan to house more than 1,500 employees.

FILE - This Sept. 6, 2012 file photo shows the Amazon logo in Santa Monica, Calif. Amazon has signed a lease for a new office space in Manhattan that will house more than 1,500 employees, less than a year after pulling out of a deal for a larger headquarters in the borough of Queens after politicians and activists objected to nearly $3 billion in incentives.

Amazon said the new office will open in 2021 and will house employees from its consumer and advertisement teams. The Seattle-based company already has 3,500 employees in other New York offices, and the headquarters for its subsidiary Audible is in nearby Newark, New Jersey. New York Gov. Andrew Cuomo had lashed out at politicians and activists whose campaign helped unravel the Queens project, saying it threatened to undermine New York City's emergence as tech hub and squandered an opportunity for generate money for schools, housing and transit. Critics of the incentives package swiftly cited Amazon's latest corporate lease to argue those fears were unfounded.

“This is crumbs from the table compared to a feast,” Cuomo said. “We don’t have a problem bringing businesses to Manhattan but we have been trying for decades to get that Queens waterfront developed.” Even before the deal unraveled, experts said Amazon's choice of New York City underscored that its main concern when it comes to expansion is access to talent at a time of fierce competition for computer programmers, mobile app developers, data scientists and cybersecurity experts. The company is continuing with its plans to build another headquarters in Arlington, Virginia, a suburb of Washington, D.C. that is also a emerging tech hub.

Still, Parilla said the large incentive package was targeted at luring Amazon to one of New York's outer boroughs, which have not benefited from the tech boom like Manhattan has.

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