Amazon announces HQ2 in a split decision (The 3:59, Ep. 489)
Amazon announces HQ2 in a split decision (The 3:59, Ep. 489)
2018-11-13
welcome to the 359 I'm Alfred Inge I'm
Ben Fox Ruben if you haven't heard
Amazon announced today that they are
bringing HQ to to Long Island City in
Queens New York and Crystal City in
Arlington Virginia our amazon reporter
Ben Fox and Ruben has all the details on
it this is so shocking I can't believe
it I'm I think I okay first of all the
news had already been leaked a lot last
week from multiple sources the other
issue that I'm sure a lot of people will
want to quibble about is they're calling
it three different North America
headquarters oh yes like what is a
headquarters any the third one would be
Nashville Tennessee no no no so the
Washington like obviously Seattle is the
first one there's also Nashville
Tennessee is gonna get 5,000 people the
other two the ones that were announced
today are gonna head get 25,000
employees each but Seattle is still the
biggest with 45,000 if Amazon state what
was so appealing about Long Island City
or Crystal City and they're so I'm sure
they did I I was just like glancing
through their statements where they said
a bunch of like positive stuff about
this the these locations it's pretty
obvious like why they wanted to go to
both of these places these are two major
centers of power in the East Coast the
the DC area obviously Amazon has been
trying to push a lot more into getting
more government contracts more defense
contracts in New York there's obviously
a lot going on with media and
entertainment in New York and Amazon
being in Seattle as their primary
headquarters as opposed to being in the
valley means that they are you know a
flight away from that center of power so
plunking down 25,000 high-paying
employees in those two major areas is
it's gonna be pretty significant for the
company were there any financial
incentives into this yes very much so I
know that Andrew Cuomo Governor Cuomo at
one point he would change his name to
Amazon Cuomo this is like okay first of
all like don't expect politicians to act
any differently than they normally would
because if you're expecting them to not
show themselves for 25
thousand jobs or 50,000 jobs which was
the initial offer then then you know
you're being ridiculous they would I'm
sure Nashville is even very very excited
about 5,000 jobs the the problem is and
the joke of it is is that this was
supposed to be an equal like a co-equal
to Seattle and instead it's being
separated by multiple states so like
calling it two different headquarters
25,000 each it's different than what was
initially promised and so a lot of
people and it's also exactly where a lot
of people would have expected them to
locate anyway so so what were the
financial incentives I know a little bit
so New York is offering 1.5 billion
dollars in incentives Virginia is
offering 575 million dollars in
incentives Nashville got away easy with
only a hundred million in incentives and
that's for creating high-paying jobs
yeah I think in the paperwork or than in
the terms for an Amazon in New York it
was a 48 thousand dollars for every job
that they bring that pays more than a
hundred and fifty thousand dollars right
temporarily obviously you know at some
point they are not going to get that
incentive and there was another part
that mentioned you know in lieu of
paying taxes or it would be developing
infrastructure within Long Island City
in Queens not sure if I'm a big fan of
that deal I don't know how many schools
Amazon is making or how much it's
helping with the subway or the police in
New York but I feel like that is
something that you know community
organizers have always been annoyed
about in terms of the steel I know in
Newark they had basically given them the
largest possible tax break had they gone
with newer actually Maryland gave them
the biggest with an eight point five
billion Network offered the second high
is a publicly known one with 7 billion
but yeah like there's there are a lot of
questions that people always ask as far
as like this is one of the wealthiest
companies in the world it's one of the
biggest companies in the world why are
we giving them and wishing I wish I
could get paid 1.5 billion dollars to
move to New York but I do exactly what
you were planning on doing in the first
place so you know that's all the time we
have for today's show if you liked what
you heard check us out on CNET I'm
Alfred Inge I'm Ben Fox Ruben thanks for
listening
and thus concludes another recording of
the audio podcast thanks everybody for
joining us for the recording of the
podcast now it's time to jump into the
chat take some questions and comments
and there's a lot of good ones filtering
in for common expanding on the
commentary we had earlier about Amazon
and their tax breaks and are they
building schools are they helping
subways I'll tell you one thing it's not
going to help the subways crowding them
up going out to Long Island City and I
live in Long Island City Astoria to be
exact and I got some cold hard facts for
those who are going to be working out
there at the new Amazon HQ whenever that
happens trains are great not great the
worst part is is that the seven train
which I assume is what would be a long
Long Island City for what they're taking
as bad as it is is still consistently
the best train in New York City
yeah that's alarming no like I used to
have to take the seven train on also the
straphangers campaign or straphangers
align it's like the the same like right
group yeah they have always rated the
seven train as like the best training
isn't it the newest one don't really
know I mean yeah like the three dozen
yard stop is the newest one if that's
what you mean yes that is what I mean
because that's what what I would use it
for I I feel like I'd be if I were still
taking that train every day though I'd
be extremely frustrated at like because
that train is really crowded in the
mornings Brian I'm sure you can attest
it if you take this train but it's like
stupid crowded so to kind of take the
other position here just to like explain
why politicians are so interested in
these types of developments despite the
fact that like you know we're talking
about schools and and police roads
subway all those things is that they see
this as an enormous long-term benefit I
saw it when I lived in Connecticut where
they were developing these giant casinos
in the middle of nowhere and they they
built like two really big ones one of
them Foxwoods one of them was Mohegan
Sun and the politicians were falling all
over themselves saying this is going to
be jobs this is going to be investment
is going to help our community years
later obviously there were a lot of
complaints about the fact that police
were answering a lot more phone calls
than they had used to the infrastructure
the
roads around the casinos were not nearly
as well-equipped so and that was granted
in the middle of nowhere but New York
City as we were talking about already
very strained infrastructure Amazon has
said they want to be a partner in
helping develop hq2
by I understand why people would be very
concerned about this Hey
and Long Island City let me just kind of
paint a picture for anyone that's not
from New York or familiar with the area
it's very much an industrial kind of
setting like it is building up like
there are a lot of like high-rise condos
and like fancy like places now but if
you're like honest on a ground level
it's still very much like industrial
like construction stuff they're like
it's the only place in New York that has
a good will that sells by weight like
you can go in and like people wait like
that and they like have these giant bags
when they come in and they like put
everything in the bag and like it's like
five dollars for a pound of clothes
they're like that's kind of like the
vibe that I said that's a really good
deal yeah I want to go I hope that like
helps paint the image of like what Long
Island City is kind of like where it's
like more gritty and working-class yeah
but like it's also like gradually
shifting like the MoMA ps1 is around
there like they took a public school
that like was closed and they turned it
into like an art museum it's like very
much like stuff like that yeah so that's
a big difference between Long Island
City and Newark Newark was obviously in
the running they offered a ton of money
and there's a lot of development area in
Newark but it is not in significant
development like it's not in the process
of gentrifying it sounds like in the
same way Long Island yes yes anyway
let's jump into the chat and dig out
some questions first up from Sean Lewis
they're deciding how between Virginia
and New York City will each building be
responsible for different things how is
this really work out what's the point of
having multiple H cues good question I
don't think they really said yeah they
didn't clarify but I would assume that
the one in Virginia is more dedicated to
Amazon's government contracts they so
they have a big deal with the CIA
and I believe the Department of Defense
on cloud services and also obviously
there is their facial recognition
program that has been catching a lot of
flak but also courting government
contracts in that way also Jeff Bezos
has ties to the Washington Post ties as
in he owns it right there we go but you
know like I feel like he'd probably be
closer to that operation within the
Crystal City office as far as New York I
feel like Ben you might have a better
answer for that
I don't they currently have a lot of
like advertising in fashion employees so
I would expect them to double down on
those areas and I like media relations
as well so those are all important areas
in New York the other thing that we
didn't even mention was that Google is
planning on significantly expanding its
footprint in New York and the West right
yeah they're going to expand with 12,000
more workers so granted that's not
nearly as many people as are in Silicon
Valley but I don't know that is it shows
how significant New York is becoming as
another tech hub next question so what
really is the the effect on the consumer
level of things with these new
headquarters are we going to get
additional perks as Amazon customers or
is this really just expanding their
general operation you get a chance to
work as an Amazon employee now if you
buy Prime membership they'll hire you as
an and four for 150,000 that's how
that's how great their wages are that
they I don't I don't know that it really
hits much on the consumer level except
to convey the fact that Amazon is
growing and it's growing really really
quickly and it doesn't plan on slowing
down anytime soon so if you are an
Amazon customer expect to see more stuff
out of them
in the near future because there are
obviously a very ambitious company next
question is coming in from Timothy do is
there a correlation that when a big
company brings their core offices to a
big city
with housing prices and cost a living
increase as well that's a good question
yeah that that's definitely gonna bump
up especially for Long Island City
around that area considering that there
right now let me look up the average
rent of Long Island's at a real quick
but it just changed while you were
looking at it but yeah if there I am
Lord around that area and I know that
there are what like at least 25,000
employees coming in over the next 10
years that have a sau have six-figure
salaries do you think I'm gonna be
charging the same rate that I was
charging people before like I there's no
way right and in the broader area too
obviously we've seen how Brooklyn and
Manhattan have had you know significant
increases already those will just get
exasperated
yeah the average household income for
Long Island City is about $70,000 and
Amazon is really yeah they're gonna be
bringing in like an influx of people
that make more than double that so right
the other the other issue to consider is
is it going to be an influx of people
that are going to be coming in from
other cities around New York or are they
just going to be poaching people from
other New York City tech jobs so it is
possible that it's not going to be a
massive influx either way it probably
will be a massive influx and thousands
more people coming in not just shifting
people over from different jobs but it's
important to consider I guess not all
twenty five thousand are gonna be new
people to the city and this is according
to curbed from a 2017 article but their
Long Island City is already the least
affordable neighborhood and like one of
the least informal neighborhoods in New
York that's why I thought they weren't
gonna come to New York you know like
it's already like ridiculously
unaffordable I didn't even know where
they were gonna locate 25,000 people
where they need 4 million square feet so
that at least to me was a bit of a
surprise but it always seemed very very
likely they were gonna go to DC so if I
was to be surprised at all by any of
this announcement it was that they were
gonna put yeah New York Long Island City
is pretty expensive which is you know
why I am looking for a roommate if any
Amazon employees are listening to this
I'm charging about 10,000
dollars a month which i think is a
pretty real yeah bring your prime
memberships yeah so if you if you're
interested you know tweet at me let me
know good idea
what is the higher cost of living New
York or Seattle that's very high they're
both very high but and Seattle has
increased substantially since Amazon has
been growing there really really quickly
two point five percent more expensive
than Seattle right but Seattle the
valley knows yeah see it's it's Seattle
Silicon Valley like the San Francisco
area in New York are like the three of
the like most expensive areas in the US
by more than la ok
let's throw our lay in there I actually
don't know I lay off the top of my head
cuz I'm a tech reporter I know those
three areas he's not a real estate agent
I'm not a real estate guy but I am
offering Amazon employees to move into
my basement in Springfield New Jersey
for the low low price of nine thousand
nine hundred ninety nine dollars a month
well what is steel yeah that's much
cheaper than what Alford was offering so
come on come on better okay
oh well I'll help with the commute a
little everybody how much would you
charge an Amazon employee to live with
you you're right there you're in Astoria
uh I mean I just want a free prime
account Oh what wow wow you've really
undercut the market not cool dude I have
simple tastes let's take some more
questions all right this one's a little
off-topic but from Timothy do question
for commuters in New York is it better
or faster to use an uber or lyft or the
train to get to work uber and lyft is
never worth it unless you're running
around super late at night and the
trains are basically non-existent
don't get me wrong they function just
fine but if you're trying to commute
through actual New York rush-hour
traffic you're screwed
yeah you're better off taking the train
I actually train as bad some lied I did
the math on this when I was I was up in
Queens recent last week to vote and I
had to I could either take the 7 train
all the way back down to the N train and
then go to Brooklyn or I could take an
uber that would have been a straight
shot there but it was
it was like it was like six six o'clock
so I was like rush-hour traffic and I
would have gone back in the exact same
amount of time even though I would have
paid like $40 for a new burns yeah so
yeah most of the times it depends on
traffic or if you just want to be by
yourself like you don't want to be
surrounded by people like if you want to
pay the extra like money for that go
ahead but like time wise it's usually
the same way different take yeah yeah I
like I said outside of when I leave here
at 12:30 in the morning like I did last
night
and the trains are not running yeah I
took a car home yeah
all right so we got a time for a couple
more questions from storm king do you
think New York will have a dedicated
transportation system to and from Amazon
like a central hub that's a far-out
question right there but it does spawned
some other thought processes that
processes that Timothy and Andre have
been kind of bringing up what if Amazon
did develop a transportation system a
proprietary transportation system drones
for yeah
what else could Amazon get into now
here's some fun thoughts what if Amazon
developed a film studio if they're going
to be in Long Island City they're not
far from Silvercup studios a famous TV
studio I I wouldn't put that too far
past them would they get into politics
given their proximity to DC would they
expand into other transportation avenues
like Elon and the boring company and
what if they started to develop housing
to compete with the higher rent just
because they put a headquarters here my
god so many all that I think oh that's
extremely optimistic of what Amazon
really wants to do because you're
comparing them to like five different
companies that are doing he's doing I'm
like I get it that Amazon it's like the
everything store but I don't think
they're doing like all those things like
the obviously they're getting into
politics they spend a lot more money in
politics than they used to and they get
a lot more money from politics and he
used to write so and Bezos has obviously
been much more involved with that kind
of stuff so definitely expect more of
that as far as them moving more into
transportation like the most that I
would expect them to do in New York
where Arlington is to like create a
shuttle service like yeah
like those they offer that kind of stuff
yeah Google has their own bus service
from San Francisco to their office in
like Mountain View NYU
like has their own shuttle service for
their own students if there were
transportation thing they'd have to do
it themselves like not with the city of
New York like they wouldn't fix the
subways as much as I'd like yeah and
they wouldn't build their own subway
which would be like I mean that's what
do you want musk is doing with the
boring company like those it's like the
schmucky astir yeah build your own
subway just do how things go like if
Amazon were intent on doing that they'd
have done that for Seattle where they
also messed up the housing market so
good point
yikes I mean they could you'll probably
see a lot more Whole Foods in your
neighborhood that's like the only thing
I can really think of like as far as
like improving the quality of life for
around like where you are well that's
fine that's fine I think Whole Foods has
delicious hummus we have time for a
couple more questions Timothy do Amazon
is announcing free shipping for all
customers for the holiday season
aren't there any perks or discounts for
current Prime members they'll probably
announce some of that later usually they
have like a December surprise that they
like to announce just to get people
excited and interested about shopping on
Amazon like one year was Amazon go which
granted it wasn't open yet the other
year was the drones which granted that
hasn't happened yet yeah okay surprise
you just seem like things that don't
actually materialize these December
surprises they're terrible so yeah don't
expect anything but yeah as we get
closer to the Black Friday expect Amazon
to like announce more deals so we'll
we'll see how that goes maybe they'll
even have like an HQ to deal should be
really lame but we'll see what what they
decide to come up with do we get a field
trip with your buddy Jeff when they
build that thing then I sure be a while
it'll be a while they plan to start
hiring for all three locations next year
and it's gonna take them quite a long
time to actually staff up to 25,000 in
each location and also build out the
space for four million square feet so
this is these are like 15 year projects
this isn't like a you know unboxing
where it's just going to be ready to go
immediate
why not we're in the world of immediate
satisfaction I demand HQ to be unboxed
right now well yeah yeah or at least
with two-day shipping I suppose so yeah
I think they should put Mike Shaw in
charge of this because his brilliant
idea I want a subscription to Subway
Prime yeah isn't that just a monthly
commuter card yeah but it's not ninety
nine dollars for the year it's like 121
dollars a month mm-hmm and it also
doesn't work
yes thanks MTA Matthew Dasher and Amazon
HQ is great now but where are they going
to put the data centers for AWS they can
put the they put them all over the
United States the data centers not only
have to be located in a bunch of
different places because of potential
natural disasters or what-have-you but
they also because of the way the
internet works you might know more about
this than I do but the way the internet
works is you could locate them in the
Midwest and it doesn't really harm the
the way that those data centers in the
cloud mm-hmm and the cloud is super fast
but yeah they have data centers all over
the place just like they have warehouses
all over the place like dotted all over
the United States Henry Kay is just kind
of daydreaming about what the campus
could look like what kind of incentives
do you think Amazon may include to make
a really attractive campus like a Google
type campus in Long Island City
I actually took them like 20 years to
develop kind of a kind of a landmark
piece in Seattle is it those disgusting
spheres yes yeah it was the spheres
which inside they look really really
cool they're like kind of like a
terrarium feel like a spider when you're
walking around in there
and there's all this like you know it's
like like a rainforest II kind of really
hope they don't bring that too
they're not gonna do that over again but
they're they're intentionally non flashy
like when you walk around their campus
in Seattle they on purpose do not have
big Amazon banners like big Amazon signs
outside the buildings because they're
trying to blend in
you could also claim that they're not
trying to blend in they're just trying
to take over and do it very quietly but
those are two different ways of looking
at it the chant wants to know if any of
us are going to quit and join the Amazon
HQ
yeah I've been covering Amazon for the
past three years with the explicit
interest of getting hired by them so if
you guys are listening hire Benton
they've already told me I'm not
qualified no well they told me that a
few times already but I'm still trying
never quit always follow your dreams
right either way the podcast is gonna
repurpose itself as the Amazon 59 when
hq2 opens in long I last for as long as
it takes for a package to get to your
around your doorsteps oh yeah we'll all
get hired there it'll be great okay we
are just about out of time
hashtag hire Ben before we go I need you
two to look at the camera right go ahead
look at the camera and say David
Rodriguez David Rodriguez because he's
having a mild aneurysm in the chat and
needed a shout-out just to get through
his day so oh hey what's up we hope we
made your day but we are at a time we'll
be back tomorrow probably with some more
chatter and speculation about Amazon
boohoo my god I hope and I'd like you 5
tomorrow baby let's go let's never ever
talk about HQ 2 again this has been such
a much q3 it is much ballyhooed year of
BS I just love you just with Ali whoo
yes I said vallance ballyhoo I love
rollin from New Jersey in all the
thirsty posts from people that wanted
Amazon HP to and it's like look at that
your giant cactus did nothing mm-hmm
yeah I appreciate that comment all right
send us on out of here
oh I'm doing this okay well if you liked
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thanks everybody we'll see you tomorrow
don't send in any more hq2 questions
ever want to talk again is at Ben Fox
please don't please don't I'm not a tree
gonna be answering questions all day so
alright bye folks
you
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