Sebastian Jimenez

Amazon HQ will be divided into two cities to increase the presence …

Amazon.com Inc. will announce Tuesday that it has selected New York and Northern Virginia for its second headquarters, a source told Reuters, which ended a more than a year-long competition that has seen a frenzied supply of stores across North America.

Amazon’s plan to divide its second headquarters, dubbed “HQ2,” evenly between two cities will increase its presence in New York and the nation’s capital as it seeks to gain a recruiting edge over Silicon Valley tech companies.

The source, who is familiar with the matter, told Reuters that Amazon will also announce a significant investment in another city, in addition to revealing the two HQ2 locations.

The company had originally said, in September 2017, that it would spend more than $ 5 billion and add 50,000 workers in one location for its second headquarters.

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Since then, it has received more than 200 proposals from cities and states that promise billions of dollars in tax breaks and other incentives in exchange for Amazon’s “HQ2.”

The tender locations also provided infrastructure, manpower and other data that could be useful in other ways for the world’s largest online retailer.

Among the finalists with whom Amazon had advanced talks were Dallas, Long Island City in New York and Arlington near Washington, DC, Reuters reported, citing sources.

The New York Times reported last week that Amazon was finalizing plans to select Long Island City, New York and the Crystal City area in Arlington, Virginia.

The Wall Street Journal reported Monday that Amazon had made the decision.

Amazon did not respond to a Reuters request for comment.

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Pros and cons

The headquarters split will give Amazon more diversity for recruiting and could also help lessen congestion and cost-of-living increases that would have accompanied a larger office.

The company has already had to solve similar problems on its urban campus of more than 45,000 people in Seattle.

An affordable housing crisis there prompted the city council to adopt a major business tax in May, which Amazon helped overturn in a subsequent city council vote.

The particular neighborhoods chosen by Amazon for its “HQ2” offer lower rents and more attractive zoning than nearby central business districts, according to a Brookings Institution report.

However, the split could also mean that the economic benefits for the hosts will be muted relative to expectations, especially given the size of the selected cities compared to some of the other contenders.