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Amazon HQ: Christie chooses Newark as NJ's contender

Michael L. Diamond
Asbury Park Press

Gov. Chris Christie has picked Newark as the state's best contender to attract Amazon's new headquarters — and as many as 50,000 jobs that will come with it.

Online retailing giant Amazon is looking for a city in which to build its second headquarters or HQ2.

Christie on Monday said the city offered the internet giant assets that would be hard to beat: a world-class university system; train and air transportation; and high-speed internet access.

And the state was poised to throw in tax credits worth as much as $7 billion. "This deal would amount to one of the most successful endeavors in the history of New Jersey and Amazon,” Christie said.

Christie made the announcement at Rutgers Business School in Newark, where he was joined by U.S. Sen. Cory Booker and Newark Mayor Ras Baraka. ROI-NJ, a business publication, first reported the decision.

Seattle-based Amazon has set the deadline for Oct. 19 for bids from states trying to compete for its expansion.

The announcement capped a flurry of activity statewide among agencies hoping to bring the internet giant to their town. Other leading contenders were Camden, New Brunswick and Jersey City, ROI-NJ had reported.

In Monmouth County, Fort Monmouth was considered the best bet, but it was never clear how serious a push officials from its redevelopment agency made.

Cities and regional economic development groups that didn't get New Jersey's official nod still can apply, although Amazon encouraged just one application for each metropolitan statistical area. 

It appears that the Edison MSA, which includes Middlesex, Somerset, Monmouth and Ocean counties, could submit its own bid. 

MORE: Amazon HQ: Fort Monmouth emerges as Shore's best hope

Amazon has been growing fast in New Jersey, adding warehouses to fill orders made online. See the video above about its hiring spree.

But this project is different. It said it needs 500,000-square-feet to start, with room to grow to a whopping 8 million square feet, or four Empire State Buildings. The jobs will pay on average $100,000.

Its list of demands has made economic development experts think New Jersey has a legitimate chance. Amazon wants an urban or suburban setting; mass transit; an international airport nearby; and a strong university system.

In that respect, Newark was an easy choice. The city, long suffering from the 1967 riot and suburban flight, is trying to stage a renaissance. It can tout its 17-minute train ride to Manhattan and a high-speed fiber optic system that is already embedded in the city.

Among the companies leading the charge are Panasonic and Audible.com, a fast-growing audio book company founded by Don Katz and now owned by Amazon.

Christie said the choice of Newark had the backing of both Lt. Gov. Kim Guadagno and Phil Murphy, who are vying to succeed him. And both Democratic and Republican lawmakers have backed a bill that would make the state's tax incentives more generous for what is considered a "transformational" project, namely, a giant Amazon headquarters.

The combination of state and local tax credits for Amazon could reach $7 billion if Amazon makes good on its promise of 50,000 new jobs.

The strategy prompted Gordon MacInnes, president of left-leaning New Jersey Policy Perspective, a research group, to say New Jersey would be better off investing in NJ Transit and strengthening the state's colleges and universities.

Next up for Newark, though, is a chance to compete with the nation's hippest cities. A Moody's Analytics report ranked Austin, Atlanta and Philadelphia as Amazon's best bets.

Amazon has said only that it will make an announcement in 2018.

Michael L. Diamond; 732-643-4038; mdiamond@gannettnj.com