Amazon cancels plan to build headquarters in New York

Local politicians, union leaders and residents questioned the financial breaks promised to the company. ABC News' Gio Benitez reports.
2:27 | 02/15/19

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Transcript for Amazon cancels plan to build headquarters in New York
We turn to the decision by Amazon canceling its plan to build a new headquarters here in New York yet the company is pulling out after weeks of local outrage over the billions of dollars in tax incentives. Both 25000. Jobs at stake who residents and politicians are at odds over the surprise decision. Businesses queens everybody this morning anger in the neighborhood where Amazon was supposed to build part of its. East Coast campus before the company canceled its plans because of local backlash. This is not sitting girl over here. We needed this over here. New York lobbied for Amazon's new headquarters offering three billion dollars in city and state subsidies in exchange for at least 25000 jobs. The city promised to revamp the area relocate a school lunch distribution center and give Amazon CEO Jeff baze those access to a helipad. New York City gave Amazon a real opportunity here. And all we asked was that they be a good neighbor be part of community and clearly they weren't ready to do that it's very disappointing there was no dialogue there was no effort to work together. I don't understand it I was flabbergasted I said you know why on earth after all the effort that we all put him. Would you simply walk away doesn't make sense. Opponents questioned why Amazon deserved so much free money. Arguing those billions could be used for local schools and infrastructure. Critics also worried about the company's commitment to union labor. Amazon chose to walk away rather than by aids. Yeah for what I believe did because what they believe it is fighting the rights of working people the rights of men and women to organize. In explaining its decision Amazon said despite polls showing 70%. Of New Yorkers supporting the plan. The commitment to build a new headquarters requires positive collaborative relationships with state and local elected officials Amazon's business operations have also been criticized by lawmakers from president trump. The senator Bernie Sanders. And according to a new report from the institute on taxation and economic policy. For the second year in a row the 800 billion dollar company. Will pay no federal taxes because of credits and other incentives in a tweet congresswoman Alexandria O'Costa Cortez. Called Amazon's decision to a bands in New York of victory over corporate greed and worker exploitation. And Amazon says it will now focus on its expansion plans in Virginia and Nashville.

This transcript has been automatically generated and may not be 100% accurate.

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