February 25, 2019

State Chamber Update

Last week I shared views about the issues surrounding Amazon and its decision to abandon plans to locate HQ2 in Queens, New York. I included commentary from the Queens Chamber of Commerce President and the Wall Street Journal. Then, a few days ago, an “ Open Letter from New York State Budget Director Robert Mujica Regarding Amazon” crossed my desk. Mr. Mujica works for New York Governor Andrew Cuomo and his letter outlines his version of the events that led to Amazon’s decision to withdraw from New York.

From the letter, "In my 23 years in the State Capitol, three as Budget Director, Amazon was the single greatest economic development opportunity we have had. Amazon chose New York and Virginia after a year-long national competition with 234 cities and states vying for the 25,000-40,000 jobs. For a sense of scale, the next largest economic development project the state has completed was for approximately 1,000 jobs... The city, through existing as-of-right tax credits, and the state through Excelsior Tax credits - a program approved by the same legislators railing against it - would provide up to $3 billion in tax relief, IF Amazon created the 25,000-40,000 jobs and thus generated $27 billion in revenue. You don't need to be the State's Budget Director to know that a nine to one return on your investment is a winner.”  

I encourage you to read his letter carefully.  

News You Can Use

On Tuesday, December housing starts and building permit data is due, and on Wednesday we’ll learn of December factory order numbers. Several Federal Reserve Governors will speak on Thursday, including Patrick Harker, and we close the week on Friday with personal income and consumer spending data.  

Michael J. Quaranta

President

Delaware State Chamber of Commerce

The Greater Kent Committee is a nonprofit organization whose mission is to identify emerging community issues and to take on projects that will improve the quality of life for the people of Central Delaware.