How much did the County Board promise Amazon? Between $10 billion and $20 billion, depending on how well Amazon and the local economy perform over the next 20 years. Basic deal is that Amazon redevelops Crystal City for its new headquarters and in return Amazon is exempt from real estate and business taxes Amazon would have to pay in Arlington. Amazon would also be exempt from some State taxes. The County would also provide Amazon the same incentives it's been giving to REITs like JBG/Smith and Forest City, most recently at the County's 'Christmas in July' meeting earlier this month.
Think of a family owning a McMansion assessed at $1.5 million today to be assessed at $4.5 million in 2038 not having to pay Arlington real estate taxes or State income tax over the next 20 years. Only Amazon wouldn't have to pay businesses taxes either and would get various kinds of essential infrastructure constructed at the County's expense.
Whether that's good for Arlington's residents, taxpayers, and voters with a County Government addicted to growth-for-the-sake-of-growth and which is always scrounging for a million here and a million there won't be known until years after the County and Amazon sign the deal.
Bears repeating that most of Arlington's decision makers don't live in Arlington, or if they do, live in exclusive enclaves and disappear a few years after they make deals for extravagant projects. Like Jay Fisette and his aquatics center.
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17 comments:
Have to wonder how much of Crystal City is already being re-purposed to Amazon' specifications and how much Amazon will buy from JBG-Smith and others.
Corporate welfare to Amazon between $500 million and $1 billion per year for the next 20 years in the form of tax exemptions and County-funded infrastructure sounds about what Amazon is looking for.
Meanwhile, at the last County Board meeting, a couple of the Arlington County Democratic Commitee's Old Guard lobbied for no tax exemptions for struggling disabled middle class Senior homeowners.
It gets worse --- County wiil assume all costs of pressnt and future infrastrructure improvements and maintenance.
If I see that a$$hole Jay Fi$ette in my neighborhood looking to make us into another LGBTQ Party Zone, I will refort his dyssfunctiona a$$ to ACPD as a 'suspicious person'.
Me too...but reality is these New Urbanist Jerks like Jay and C.Z. are long gone to live in quiet upscale places that are 100 miles or more from the nearest "Smart Growth'.
Do the math...How many upscale Amazon employees will earn $300,000 per year and live in $1.5 million McMansions and will pay about $16,000 in real estate taxes while sending 2 or 3 kids to APS at $20,000 per kid per year? Duh.
Amazon is another bubble...like Facebook. Why is Arlington getting involved with this company?
Arlington With / Without Amazon:
Without - A social, economic, and environmental mess by 2028
With - A social, economic, and environmental disaster by 2028
Next big thing in retail-distribution comes along in 5 years and where's Amazon?
You can safely bet that whatever deal the County signs with Amazon allows Amazon to close HQ2 in 10 years if Amazon so desires.
So, as it happens Federal employment in the DC area related to the military has risen significantly since Trump took office. Why do we need Amazon? Renovate Crystal City and move the military and the contractors back.
Facebook's comeuppance should be a warning to any jurisdiction that courts Amazon.
Amazon has a 20th Century business model. Retail corporations are responding to Amazon with a 21st Century business model which includes downsizing stores, providing on-line ordering with customer pick up and home delivery options, providing contractors to install products, selling proprietary and trademarked products (e.g., branded tools) shipped via UPS or various delivery contractors.
Local Media no longer care about the local economy, local quality of life, local anything. All their Owners and Publishers care about are profits.
Worst is - costs of their 'development for the sake of development' agenda are externalized onto taxpayers.
Track info on the Arlington Amazon situation @ https://www.arlingzon.com
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