Amazon Inc. (AMZN - Get Report) is abandoning plans to build one of its second headquarters in Long Island City, Queens due to stiff political opposition from local leaders. It added that it did not plan to resume its search for another location for a new headquarters.
"After much thought and deliberation, we've decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens. For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term," Amazon said in a statement.
The company noted that some polls show that as many as 70% of New Yorkers would welcome the company to the city.
Thursday's announcement comes just days after the Washington Post reported that the company was reconsidering its decision to move to New York amid dissatisfaction from local officials and residents over the process that gave Amazon billions of dollars in tax breaks in return for choosing New York for one of its second headquarters outside of Seattle.
The company said that it will not reopen the bidding process for the site at this time. Last November, Amazon announced Long Island City and Arlington, Virginia as the winners of its search after a lengthy and high-profile bidding process. The selection was expected to result in at least 25,000 new full-time jobs in each city and $2.5 billion in investment in each by Amazon. Amazon also said it would open a "center of excellence" in Nashville, Tenn. that would create at least 5,000 jobs.
"We do not intend to reopen the HQ2 search at this time. We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the U.S. and Canada," Amazon's statement said.
Amazon initially decided to split its new headquarters across two locations because of its need to find enough skilled employees. New York had been set to contribute performance-based direct incentives of $1.525 billion based on Amazon creating 25,000 jobs in Long Island City in a plan championed by New York governor Andrew Cuomo and New York City mayor Bill de Blasio.
Amazon shares closed trading down 1.06% to $1,622.65 on Thursday.
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