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Goldman Sachs Subsidy News

In a rushed board meeting of the Liberty Development Corporation (LDC) on August 15, 2005 (the entity created to allocate the state's portion of 9/11 Liberty Bonds), members approved a resolution to allocate $1.65 billion in bonds for Goldman Sachs’ new headquarters across the street from the World Trade Center site. This is an increase of $650 million from the original $1 billion proposed last year for the firm.  Although they claimed to have given "final" approval for the project, the LDC is required to hold a public hearing, which was eventually scheduled for Wednesday, September 7, 2005.

 

In its board meeting on Monday, September 26, the LDC unanimously approved the allocation of $1.65 billion in Liberty Bonds for Goldman Sachs.  It was announced that the city and state would each contribute half of this amount, which represents the largest allocation of 9/11 resources to a single firm. 

• Click here for a description of the full subsidy package, based on press releases and news accounts.

• Click here to view Good Jobs New York's testimony presented at the September 7 hearing.

• Click here for the project materials released by the Liberty Development Corporation on September 1, several days before the hearing.

• Click here for more information regarding Goldman Sachs--a leading global investment banking, securities and investment management firm operating offices in over 20 countries.

A public hearing was held on Wednesday, September 7, from 5:30-7:30 pm at the Museum of Jewish Heritage, at 36 Battery Park Place in Classroom A&B on the first floor in Lower Manhattan. 

The hearing notice stated that project materials will not be available for public review until noon on September 6.  To request copies of materials, contact Frank Corcoran at 212.803.3124.

Read GJNY's testimony from September, 2004, regarding Goldman Sachs' initial application for $1 billion in Liberty Bonds.

Timeline of Recent Events

9/26/2005 -- The Liberty Development Corporation unanimously approved the allocation of $1.65 billion in Liberty Bonds for Goldman Sachs, with the city and state agreeing to split the cost.

 

8/23/2005 -- The Battery Park City Authority approved the lease arrangement for Goldman Sachs' proposed headquarters, to be located on Site 26 of Battery Park City. The 65-year lease agreement does not require Goldman's annual payments in lieu of property taxes to be based upon the assessed value of the building and the applicable property tax rate.  Instead, the ceiling was set at just $10.71 a square foot, or $21.4 million.  Goldman will also pay a one time lease payment of $161 million, $3.5 million for a new library, $1 million for a community center, and $900,000 a year to support Battery Park open spaces.

 

8/17/2005 -- The Liberty Development Corporation announced that a public hearing on the $1.65 billion in Liberty Bonds will take place on Wednesday, September 7 from 5:30 - 7:30 pm at the Museum of Jewish Heritage, at 36 Battery Park Place in Classroom A&B on the first floor in Lower Manhattan.

 

The notice states that project materials will not be available until noon on September 6 for public review.  To request copies of materials and to register to testify at the hearing, contact Frank Corcoran at 212.803.3124.

 

8/16/2005 -- The Battery Park City Authority board meeting was cancelled shortly before it was scheduled to begin.  After days of media speculation regarding the details of the Goldman Sachs agreement, Good Jobs New York has still not obtained documentation pertaining to this project despite numerous requests.

 

8/15/2005 -- The Liberty Development Corporation approved $1.65 billion in Liberty Bond financing for Goldman Sachs' new headquarters and a $25 million grant under the federally-funded World Trade Center Job Creation and Retention Program.  Click here to read the story in The Bond Buyer. Although the LDC claimed to have given "final" approval for the project, they are required to hold public hearings regarding these subsidies.

 

8/15/2005 -- At 3pm, the Battery Park City Authority announced a board meeting for the following day, presumably regarding a lease agreement with Goldman Sachs for Site 26 in Battery Park City North.

 

8/12/2005 -- The New York Times reported that Goldman Sachs may receive at least $150 million in new city and state tax credits, as well as $1.65 billion of Liberty Bond financing, for locating its new headquarters across the street from the former World Trade Center site.  Contrary to reports, these bonds have not been approved.  

 

4/4/2005 -- Goldman Sachs announced that it had suspended plans to build a 40-story, $2 billion headquarters. Officials who were briefed about the decision said the company was troubled by the location of a proposed tunnel beneath the site.

 

9/23/2004 -- Hearing was held for the proposal to authorize $1 billion in commercial Liberty Bonds for Goldman Sachs to build a new headquarters at site 26 in Battery Park City.  Read GJNY's testimony.