Northam: ‘Virginia is for Amazon lovers’

Governor announces internet giant’s new location in Northern Virginia

By James Ivancic, Times Staff Writer

Efforts to entice Amazon to build its second headquarters in Virginia were rewarded with Tuesday’s announcement of a $2.5 billion investment by the corporate giant to spread its offices over Pentagon City, Crystal City and Potomac Yard in Northern Virginia.

Amazon, based in Seattle, Washington, decided to split its second headquarters between Virginia and Long Island City in New York. States and communities across the nation submitted 238 different proposals that included incentives as they bid to lure Amazon to them.

Northern Virginia’s proposal included four sites in the city of Alexandria, Arlington County, Fairfax County and Loudoun County. “National Landing,” the winning location, was proposed as a joint partnership between the City of Alexandria and Arlington County.

Virginia Gov. Ralph Northam said more than 25,000 high-paying jobs will be created over 12 years.

The headquarters will be housed in a collection of new and renovated buildings located in the newly dubbed “National Landing,” which includes portions of Pentagon City and Crystal City in Arlington County and Potomac Yard in Alexandria. Amazon’s initial growth is expected to be focused in the Crystal City and Pentagon City portions of the area, according to a press release from Northam’s office.

Virginia is expected to gain more than $3.2 billion in new state general fund revenues over the 20-year incentive term with Amazon, after accounting for direct company incentives, according to Northam’s announcement. In addition to the 25,000 direct jobs Amazon will create, more than 22,000 permanent, direct, and indirect new jobs are expected, the press release said.

“I was pleased to see the governor’s announcement regarding Amazon’s HQ2 investment in northern Virginia. This is a great win for the State of Virginia and helps promote our region as an attractive location for technology companies…which benefits every community in the area,” said Miles Friedman, director of Fauquier County’s Department of Economic Development.

State Sen. Jennifer Wexton, D-33rd, who was elected last week to represent the 10th District in Congress, was congratulatory but also cautious about whether Northern Virginia’s infrastructure is up to challenge.

“This historic move by Amazon to bring half of its HQ2 to Virginia will yield good-paying, sustainable jobs that will allow Northern Virginia’s economy to compete globally for decades to come. I’m glad Amazon recognizes that Northern Virginia is a top location to raise a family and grow a business,” Wexton said.

“However, I share the concerns of my constituents regarding whether we have the necessary infrastructure, including roads, transit, schools and affordable housing to properly welcome Amazon to our region. I look forward to working with Amazon now and in the future and call upon them to be a responsible corporate citizen, to ensure that the quality of life of their future employees and current northern Virginia residents is not adversely impacted by this move.”

Virginia incentive package for the new Amazon headquarters was made public for the first time Tuesday in conjunction with the governor’s announcement.

Virginia unveils incentive package

Northam said the majority of the commonwealth’s proposal to Amazon involves investments in education and transportation infrastructure.

The commonwealth’s package aims to double the annual number of graduates with bachelor’s and master’s degrees in computer science and closely-related fields, ultimately yielding 25,000 to 35,000 additional graduates over the next two decades.

The commonwealth, Arlington County, and the City of Alexandria have also committed funding for transportation investments to support mobility in the region.

Included in the incentive package, which is subject to approval by the Virginia General Assembly, the state will:

• Provide up to $22,000 per job or up to $550 million to Amazon. Additional incentives would be available if Amazon creates more than 25,000 jobs.

• Invest up to $195 million of non-general fund money in transportation projects that will improve mobility in the region, including additional entrances to the Metro stations at Crystal City and Potomac Yard; improvements to U.S. 1; a connector bridge from Crystal City to Washington National Airport; and a transitway expansion supporting Pentagon City, Crystal City and Potomac Yard.

• Make performance-based investments in bachelor’s degree programs in computer science and related fields that will be distributed statewide based upon a negotiated agreement with each public university or community college that wishes to participate.

• Invest of up to $375 million over 20 years for new master’s degree programs in computer science and related fields at George Mason’s Arlington campus and for Virginia Tech to establish a new Innovation Campus in Alexandria, both of which are subject to a one-toone match from the universities with philanthropic funds; and

• Invest $50 million over 20 years in K-12 tech education and internship programming to connect higher education students to tech jobs.

Virginia Tech has committed to building a 1 million-square-foot, technology-focused campus in Alexandria — a $1 billion project that is part of a comprehensive higher-education package that was cited as a key reason Amazon selected Virginia for a new headquarters site.

The Virginia Tech Innovation Campus will be along U.S. 1 in Alexandria. The university has entered into a memorandum of understanding with Stonebridge Associates Inc. and the City of Alexandria to expedite construction of the new campus.

Reach James Ivancic at jivancic@ fauquier.com