It happened, and then it … unhappened?
E-commerce giant Amazon was essentially bathed in a perpetual glow throughout last year. The company spelled the prize of all prizes for more than 200 American cities vying for selection as its second headquarters.
New York City won that contest, along with a second site in Northern Virginia. Ecstasy abounded in many quarters, based on projections that the company’s move to Long Island would bring in a huge infusion of new employment and massive revenues for the city.
We noted the hype in our Berdon, Young & Margolis business law blog. Our November 6 post of last year spotlighted the prediction of many pundits that the Big Apple nexus would greatly benefit Connecticut. A collective view embraced the hope that the major move would have “dramatically positive effects on the state’s economy and workforce.”
Nix that sentiment.
As most of the business world now knows, the blissful relationship between New Yorkers and Amazon came to a sudden demise last week. Broad-based criticisms that were voiced concerning the project in the wake of its announcement killed the deal.
Many city residents felt that they were being taken extreme advantage of by a company that hardly needs to be helped by billions in enticements and related benefits. Worries were voiced over tax monies being lost, rents that would skyrocket and key programs locally that would be undercut by officials’ need to constantly appease Amazon.
Those worries are now gone, commensurate with Amazon’s pulling of the plug on the deal. The botched transaction has several takeaways, one of which is certainly the instructive point that size isn’t everything.