Bank of America Subsidy News:
Bank of America plans to cut up to 12,500
jobs as a result of merger with FleetBoston. Read more about the Bank of America's
February 2004 subsidy
and terminated 1993 deal.
Layoff rumors have sparked concerns about the recent subsidy deal, as reported in
Newsday.
$650 million in Liberty Bonds plus Additional $82.6 Million in City and State Tax Breaks approved for a New Midtown Office Tower, Developed by Durst Organization and Anchored by Bank of America
August 4, 2005 - NYC Industrial Development Agency holds a hearing on Bank of America's proposed transfer of its tax benefits from 1 Bryant Park to existing office space located at 50 Rockefeller Center. Read GJNY's testimony.
February 10, 2004 - NYC Industrial Development Agency approves $42 million in discretionary tax breaks for the Bank of America: $32.5 million in growth benefits available on a per-employee basis; $6.0 million in sales and use tax exemptions; and up to $3.5 million in Con Ed's Business Incentive Rate. These benefits can be used both at 1 Bryant Park and at existing offices at 100 West 33rd Street, 335 Madison Avenue, 9 West 57th Street, and 40 West 57th Street. They are in addition to the $650 million in Liberty Bond financing approved earlier for 1 Bryant Park.
February 5, 2004 - NYC Industrial Development Agency announces strengthened money-back guarantees if Bank of America fails to grow jobs over 25-year life of deal. Read coverage of public hearing in the Daily News
Read testimony from the public hearing on $42 million in city tax breaks for Bank of America from State Senator Liz Krueger, and Good Jobs New York. The subsidy was approved by the IDA board on February 10, 2004.
December 2003 - Durst Organization and Bank of America secured a settlement with remaining property owners at One Bryant Park, clearing the way for a proposed new office tower to be financed with $650 million in Liberty Bonds.
State Subsidies: up to $40.6 million
Benefits to be conveyed through the ground lease held by the Empire State Development Corporation (ESDC) include Payment In Lieu Of Taxes (PILOT) savings of up to $26.2 million on real property taxes and a $14.4 million waiver of mortgage recording taxes associated with the Liberty Bond financing.
The ESDC held a public hearing on the condemnation of property at One Bryant Park, general project plan, draft environmental impact statement, and ground lease terms on November 20, 2003.
Read testimony from State Senator Liz Krueger, State Assemblymember Scott M. Stringer, Good Jobs New York.
City Subsidies: up to $42 million
The $32.5 million in growth benefits is available to be earned on a per-employee basis. Additional benefits include $6.0 million in sales and use tax exemptions and up to $3.5 million in Con Ed's Business Incentive Rate. These benefits can be used both at 1 Bryant Park and at existing offices at 100 West 33rd Street, 335 Madison Avenue, 9 West 57th Street, and 40 West 57th Street.
$650 million in Liberty Bond financing for the project received preliminary approval from the NYC Industrial Development Agency on September 30, 2003.
Read news accounts in The New York Times, The New York Post, & The Bond Buyer
Read testimony from:
State Assemblymember Scott M. Stringer
City Council Speaker Gifford Miller
Good Jobs New York
New York Industrial Retention NetworkThe Manufacturing Woodworkers Association of Greater New York
Click here to read about the Bank of America's 1993 subsidy deal.
More information on commercial Liberty Bonds is available at GJNY's Reconstruction Watch site. (In reaction to the attacks of September 11th, commercial Liberty Bonds were included in the $8 billion of triple tax-exempt, discounted financing available as part of the Federal Job Creation and Worker Assistance Act of 2002. A detailed summary of Liberty Bond legislation is available at: Reconstruction Watch Publication #3.)