New York does gain something, the much more vibrant and robust collection of businesses that will occupy that area instead and pay their fair share of taxes.
You really have no idea what LIC is like, do you? They're completely unable to support small businesses except those that cater to the upper-middle class. There is no dollar slice, only $24 gluten-free artisanal pizza. The only business Amazon was going to displace was Citibank.