>>> BUT SOMEHOW, FOLKS WHO

CONSIDER THEMSELVES PROGRESSIVE

DEMOCRATS HAVE SEEN FIT TO THROW

$3 BILLION AT THE RICHEST MAN IN

THE WORLD.

[ BOOING ]

THAT IS WRONG, AND WE SHOULD ALL

BE OUTRAGED AT WHAT HAS HAPPENED

HERE.

>> THAT WAS CITY COUNCIL MEMBER

JIMMY VAN BRAMER LEADING A RALLY

YESTERDAY, PROTESTING THE DEAL

TO BRING AMAZON'S NEW

HEADQUARTERS TO LONG ISLAND CITY

QUEENS.

GOOD EVENING AND WELCOME TO

"METROFOCUS."

I'M RAFAEL PI ROMAN.

THE BLOWBACK HAS BEEN SWIFT, AND

BLAMER IS JUST ONE OF SEVERAL

ELECTED OFFICIALS NOW VOWING TO

FIGHT AMAZON'S HQ2 SAYING THE

DEAL ANNOUNCED THIS WEEK GIVES

TOO MUCH AWAY TO THE TECH GIANT.

STATE SENATOR MIKE GENERES CALLS

THE PLAN QUOTE, CORPORATE

WELFARE.

CITY COUNCIL SPEAKER CORY

JOHNSON BLASTED THE DEAL-MAKING

PROCESS WHICH HE SAYS WAS DONE,

QUOTE, BEHIND DOORS WITH ZERO

COMMUNITY INPUT.

AND NEWLY ELECTED CONGRESSWOMAN

ALEXANDRIA OCASIO-CORTEZ CAME

OUT STRONGLY AGAINST THE PLAN,

SAYING THAT HER OFFICE HAS

ALREADY STARTED FIELDING CALLS

FROM OUTRAGED RESIDENTS.

BUT WITH GOVERNOR CUOMO AND

MAYOR DE BLASIO UNITED IN

SUPPORT OF 2Q, CAN ANYTHING

BUT DONE TO STOP IT?

JOINING US IS BEN MAX, EXECUTIVE

DIRECTOR OF THE GOTHAM GAZETTE.

WELCOME BACK TO THE PROGRAM.

>> THANKS FOR HAVING ME.

>> YOU KNOW, BEN, LAST YEAR I

WENT TO AN EVENT AT GOOGLE'S

HEADQUARTERS JUST AFTER IT WAS

ANNOUNCED THAT AMAZON WAS

LOOKING FOR A NEW PLACE TO PLACE

A SECOND HEADQUARTERS, AND EVEN

THOUGH IT WASN'T THE SUBJECT OF

THE EVENT, ALL THE PEOPLE TALKED

ABOUT WAS HOW EXCITED THEY WERE

THAT AMAZON MIGHT COME TO NEW

YORK CITY.

AND AMONG THE MOST EXCITED WERE

SOME OF THE PEOPLE I THINK THAT

ARE NOW MOST STRONGLY AGAINST

IT.

WHAT CHANGED?

WHAT ARE THE CHIEF GRIEVANCES

THAT PEOPLE HAVE AGAINST THIS

DEAL?

>> SO I THINK THE TOP TWO, BUT

THE ONE THAT PROBABLY GETS AT IT

IS THE PROCESS BEING SO

SECRETIVE AND NOT INCLUDING

LOCAL LEGISLATORS LIKE GENERES,

VAN BRAMER AND OTHERS AND THE

TAX BREAKS AND THE CAPITAL GRANT

THAT IS BEING OFFERED BE.

THE ONE THAT PROBABLY SPEAKS TO

YOUR QUESTION IS THE PROCESS

INVOLVED AND THE QUESTIONS

AROUND THE SECRECY OF PUTTING

THE DEAL TOGETHER WITHOUT PUBLIC

REVIEW OR LEGISLATORS INVOLVED.

>> THIS PROCESS HAS BEEN GOING

ON FOR OVER A YEAR.

THEY WEREN'T BEING ASKED TO

CONTRIBUTE.

THEY KNEW THEY WERE BEING KEPT

OUT.

>> RIGHT.

>> SO WHY DID THEY WAIT UNTIL A

DEAL IS STRUCK TO COMPLAIN ABOUT

THAT?

>> IT'S AN IMPORTANT QUESTION.

I THINK ONE OF THE THINGS THAT

THE SECRECY OF THE DEAL AND

EVERYTHING ELSE THAT IS ALWAYS

GOING ON, INCLUDING THE

ELECTIONS WE JUST HAD PROBABLY

LULLED SOME PEOPLE TO SLEEP A

LITTLE BIT.

THE OTHER THING AT PLAY, I DON'T

KNOW THAT PEOPLE HAD QUITE

GOTTEN UP TO SPEED ABOUT WHAT

THE TIMING OF THE ANNOUNCEMENT

WOULD BE TO SORT OF GET OUT

AHEAD AND START BANGING THE DRUM

A LITTLE BIT, BUT I THINK YOUR

POINT IS VERY VALID.

WHERE WERE YOUR VOICES AS THIS

PROCESS WAS UNFOLDING?

YOU SHOULD HAVE BEEN DEMANDING

MORE INFORMATION.

>> AS FAR AS THE MONEY IS

CONCERNED, OVER 1.5, SOMETHING

LIKE 1.7 JUST FROM THE STATE,

YOU KNOW, I DON'T KNOW MUCH

ABOUT THESE DEALS, BUT EVEN I

KNEW THAT THERE WAS GOING TO BE

MILLIONS OR PERHAPS EVEN

BILLIONS INVOLVED IN GIVEAWAYS

TO GET AMAZON HERE.

HOW COME THE PEOPLE WHO ARE

COMPLAINING ABOUT IT DIDN'T KNOW

THAT?

>> I THINK THEY HAD A SENSE.

SO HERE IS ONE OF THE MOST

IMPORTANT LESSONS FROM WHAT'S

GOING ON HERE.

WE SHOULD ALSO SAY THIS IS NOT

COMPLETELY FINAL YET THERE A

MEMORANDUM OF UNDERSTANDING.

THEY HAVE MADE AN ANNOUNCEMENT

THERE IS A PROCESS THAT NEEDS TO

HAPPEN.

THERE IS PAPERWORK THAT NEEDS TO

BE FILED THERE NOT A LOT OF

APPROVAL THAT HAS TO HAPPEN FROM

THE LEGISLATIVE BODIES, AND

THAT'S PART OF THE CRITICISM,

RIGHT.

BUT THERE IS STILL STEPS BEFORE

THIS IS A COMPLETELY DONE DEAL

AND THERE ARE SHOVELS IN GROUND,

SO TO SPEAK.

BUT ONE OF THE THINGS THAT THIS

PROCESS HELPS US UNDERSTAND IS

THAT THESE TAX BREAKS AND THESE

TAX INCENTIVES WERE ALL THERE.

THEY'RE EXISTING PROGRAMS.

SO THESE ARE THINGS THAT AMAZON

WAS TAKING ADVANTAGE OF AND THAT

THE CITY AND STATE COULD OFFER,

ALL EXCEPT ONE CAPITAL GRANT

THAT THE STATE IS PROVIDING FOR

ABOUT $500 MILLION.

>> AND HOW ARE GOVERNOR CUOMO

AND MAYOR DE BLASIO RESPONDING

TO THE CRITICISM?

>> THE FIRST THING THEY'RE DOING

IS POINTING TO THE JOB NUMBER,

25,000 JOBS EXPECTED TO BE ADDED

IN NEW YORK CITY OVER TEN YEARS.

AND THE AVERAGE SALARY THAT

THEY'RE ESTIMATING IS $150,000 A

YEAR.

SO THEY'RE POINTING TO THOSE TWO

NUMBERS.

THEY'RE ALSO TALKING ABOUT

DIVERSIFYING THE CITY ECONOMY,

BUILDING OUT QUEENS AS THIS TECH

HUB AND ENCOURAGING MORE

ECONOMIC GROWTH IN THE OUTER

BOROUGHS.

NOW, THERE ARE ISSUES WITH ALL

OF THOSE THINGS, AND WE CAN GET

INTO THEM.

ONE THING I'LL POINT OUT NOW,

WHEN YOU TALK OF AN AVERAGE

SALARY OF $150,000, THAT COULD

BE LIFTED QUITE A BIT BY SOME

VERY HIGHLY PAID TOP EXECUTIVES.

>> RIGHT.

>> AND YOU'RE MAKING THE AVERAGE

LOOK A LOT BETTER.

HOWEVER, EKNOW THERE WILL BE A

NUMBER OF GOOD PAYING SORT OF

MIDDLE LEVEL JOBS COMING, BUT

THAT ALSO LEADS TO THE QUESTION

OF WHO IS FILLING THEM.

>> BY THE WAY, CRYSTAL CITY IS

GETTING 25,000 POSSIBLE JOBS,

POTENTIAL JOBS.

WE'RE GETTING 25,000.

BUT VIRGINIA IS ONLY GIVING A

THIRD OF THE INCENTIVES, HALF A

BILLION DOLLARS INSTEAD OF $1.5

BILLION.

AS THE GOVERNOR ADDRESSED THAT?

>> HE HAS A LITTLE BIT.

ONE OF THE THINGS HE POINTED TO

IS THAT THE TAX STRUCTURES IN

THE TWO STATES ARE VERY

DIFFERENT.

AND IN ORDER TO LURE AMAZON, THE

TAX STRUCTURES ARE ALREADY IN

PLACE, THE BENEFITS IN PLACE ARE

BECAUSE OF NEW YORK'S HIGH TAX

ATMOSPHERE.

AND THAT'S PART OF THE REASON,

AGAIN, THAT SOME OF THESE

PROGRAMS ALREADY EXIST.

AS I WAS SAYING, WHAT THEY'RE

DOING IS THEY'RE USING PROGRAMS

AT THE CITY AND STATE LEVEL THAT

ALREADIER ARE IN PLACE AND

PROBABLY NEED SOME REEVALUATION

AND MIGHT GET SOME AS A RESULT

OF THIS.

>> DO YOU THINK THAT THE

GOVERNOR AND THE MAYOR ARE

SURPRISED AT THE LEVEL, THE

DEGREE OF BLOWBACK THAT THEY'RE

GETTING ON THIS?

>> PROBABLY A LITTLE.

I THINK THEY BOTH HAVE COME TO

EXPECT IT AT THIS POINT, AND

THEY SORT OF LAUGHED ABOUT IT A

LITTLE BIT WHEN THEY WERE

HOLDING A PRESS CONFERENCE

TOGETHER, BUT I DO THINK THAT

THEIR ASSUMPTION WOULD BE THAT

THE NUMBER OF JOBS AND A LOT OF

GOOD PAYING JOBS COMING IN WOULD

BE MORE APPRECIATED PROBABLY

THAN THE BLOWBACK HAS INDICATED.

THE OTHER THING THAT'S AT PLAY

HERE, AND THEY WERE OUT THING

THIS AT THAT PRESS CONFERENCE,

AT LEAST IN THE CONSTRUCTION AND

THE BUILDING SERVICES JOBS,

THERE WILL BE A LOT OF UNION

JOBS INVOLVED.

HOWEVER, THE RUBBER MEETS THE

ROAD AROUND THE ACTUAL AMAZON

EMPLOYEES, AND THERE IS SERIOUS

QUESTIONS ABOUT HOW AMAZON

TREATS EFFORTS TO UNIONIZE AMONG

ITS EMPLOYEES.

>> YOU KNOW, ONE OF THE MOST

PROMINENT ARGUMENTS THAT HAS

BEEN MADE IS LOOK, IT DIDN'T

TAKE THE SMARTEST COMPANY IN THE

WORLD 14 MONTHS TO FIGURE OUT

THAT THEY PROBABLY WANTED THEIR

HEADQUARTERS IN OR NEAR THE

POLITICAL AND THE FINANCIAL

CAPITALS OF THE COUNTRY.

AND THAT WE JUST PAID A BILLION

DOLLARS PLUS FOR SOMETHING THAT

WAS GOING TO HAPPEN ANYWAY.

DO YOU BUY THAT?

>> YES, ABSOLUTELY.

I THINK THAT THAT'S A VERY

SERIOUS QUESTION AT PLAY HERE AS

WELL.

ONE OF THE THINGS AS I'VE

INDICATED IS THE CITY AND THE

STATE, IF THEY WERE GOING TO

BRING AMAZON IN, THERE IS VERY

LITTLE THAT THEY COULD CONTROL

ABOUT THE TAX BREAKS AND

INCENTIVES THAT COULD GO BECAUSE

THEY'RE TAKING ADVANTAGE OF

EXISTING PROGRAMS.

HOWEVER, WHAT THEY COULD HAVE

NEGOTIATED WAS ANYTHING YOU'RE

GETTING IN THESE TAX BREAKS AND

INCENTIVES, YOU PUT BACK INTO

THE COMMUNITY, YOU DO MORE

WORKFORCE DEVELOPMENT, YOU DO

MORE OUTREACH, YOU PUT

ADDITIONAL FUNDS INTO

INFRASTRUCTURE.

WE HAVEN'T EVEN TOUCHED ON THAT

REALLY YET.

STRESS ON THE MTA, QUESTIONS

AROUND TRANSPORTATION, THERE A

LOT OF STUFF BUILT IN HERE, NOT

TO MENTION ISSUES RELATED TO

CLIMATE CHANGE, LONG ISLAND CITY

AND THESE HEADQUARTERS BEING

RIGHT ON THE RIVER ARE.

>> SO IN 15 SECONDS OR SO, WHAT

IS YOUR BEST GUEST?

IS THIS DEAL GOING TO HAPPEN

MORE OR LESS ACCORDING TO THE

DEAL ASSOCIATED ALREADY?

>> I DON'T LIKE TO DO TOO MANY

FAR-OUT PREDICTIONS, BECAUSE

THIS COULD BE A LONG TIME, BUT

YES, I THINK SO.

PROBABILITY.

THE QUESTION IS WILL THERE BE

LAWSUITS AND WILL THE PROTESTS

IF THEY CONTINUE HAVE A AN

IMPACT ON WHAT THE FINAL DEAL

LOOKS LIKE.

>> OKAY, BEN.

VERY INTERESTING STUFF.

THANK YOU SO MUCH FOR JOINING US

TO TALK ABOUT IT.