Amazon wins incentive package for HQ2 amid protests in Virginia

Amazon - AP

Amazon’s plan to build its second headquarters in northern Virginia received a significant boost after local officials approved a $51m incentives package for the tech giant.

An Arlington County board voted overwhelmingly in favour for the financial package after a seven-hour meeting attracting 150 citizens and representatives from local unions saw debates and protests rally around the deal put together to lure-in Amazon.

In November, the Silicon Valley firm picked an area in Crystal City, Arlington, to establish its so-called HQ2, along with New York City, but has faced fierce local opposition around the impact of its proposals.

During the meeting at the county office on Saturday, officials were met by protesters who shouted “shame” and “the people united will never be defeated”.

Signs were also held by protesters that said “don’t be the opposite of Robinhood” and “Amazon overworks and underpays”.

Part of the $51m package will see Amazon receive a controversial $23m cash grant generated from taxes on local hotel rooms and paid over 15 years - so long as Amazon comes to occupy six million square feet of office space.

It comes just a month after Amazon scrapped its plans to build a part of its HQ2 in the New York borough of Queens. Locals were angered by the incentives offered to Amazon by state politicians and raised concerns about the impact the company could have on the price of housing.

Amazon’s search for a suitable location to host its new headquarters involved a year-long selection process that saw US cities climb over each other at the business and jobs prospects the firm could bring with it to their vicinity.

At the Arlington county board meeting, Amazon’s worldwide head of economic development Holly Sullivan said the company will invest $2.5bn and create over 25,000 jobs with an average wage of over $150,000.

Ms Sullivan looked to address concerns around tax by saying the company would generate $3.2bn in tax revenue.

“Regarding incentives, Amazon is only eligible for the financial incentive after we make our investments and occupy office space in the community,” she said.