Posted on: February 14, 2019 05:30 PM

Share : Facebook Twitter Email Whatsapp

Real estate killed the Amazon deal in Queens

NYC will be and always belong to original real estate barons.

The number one income for NYC is property tax consists of 72% according to Dept of Finance. The top barons of real estate industry doesn't pay property taxes as part of the affordable housing which is same as low income housing.

The deal under city is build an apartment on a land given for less than nothing or 99 year free lease. Then allocate a small percentage for low income tenants without paying property tax. This is a prime fixture with politicians in favor.

In October 2018, Amazon announced its entry into real estate market and targeted NYC. The deal was Amazon will pay property tax in favor of $3 billion corporate tax on its profits from sales as a gesture.

However, the corporate tax in the long run will be over $3 billion.

Amazon's presence will bring more tech companies with higher salary jobs yielding local economy boost at $17 billion a year bringing new real estate players according to multiple developers.

Also, multiple sources confirmed in the mayor's office, clash between old players and newcomers in the real estate will increase conflicts.

The main fear was eliminating low income housing, thus developers lobbied local politicians from NYC Council Jimmy Van Bramer to State Senate Gianaris.

Alexandria Ocasio-Cortez opposed due to rent hikes causing an increase in homeless. Real estate brokers in Long Island City stated higher rent and property taxes which tech companies can fork over easily caused rift among politicians and the mayor.

The deal was really between old and new money in real estate.