| Company | Donaldson, Lufkin & Jenrette, Inc. (now Credit Suisse First Boston) |
| Date Announced | 8/11/1994 (deal closed 8/18/1995) |
| Project Site |
277
Park Avenue, Manhattan
Additional projects sites: 300 Park Ave, 315 Park Ave S, 237 Park, 120 & 140 Broadway, 280 Park, 153 E 53rd St. |
| Competing Sites | Jersey City, N.J. |
| Maximum City Subsidy | At least $28 million |
|
$16,900,000 (IDA spreadsheet) |
|
$3.3
million (news clips) $1,000/employee with no listed cap (IDA spreadsheet) |
| Type(s) of City benefits |
Sales tax exemptions
-- Up to $20.2 million Energy savings (NYCPUS program) - $7.4 million PILOT savings - ? $428,000 given out by FY 2002 according to Local Law 69 Report |
| Benefits from New York State | ? |
| Total Benefits Allowed | ? |
| Benefits Distributed to Date (according to LL69 Report FY 2002) | $11,281,000 |
| Promised Job Retention | 1,950 |
| Promised Job Creation | 1,162 |
| Total Jobs | 3,112 |
| Jobs Reported in LL69 Report FY 2002 | "Company has not granted NYCEDC permission to publish job numbers." |
| Layoffs |
A few months after accepting the subsidy
package, DLJ closed its municipal bond unit, cutting 125 jobs. Following the acquisition by CSFB, 2,000 jobs were eliminated in July 2000. Soon after, an additional 500 jobs were cut in response to the precipitous falloff in fund-raising by new media and telecom companies. |
| Length of Contract | 20 years |
| Project Purpose | Investment bank Donaldson, Lufkin & Jenrette, a leader in junk-bond financing, threatened to move operations from two New York City locations to Jersey City, but agreed to consolidate them on Park Avenue in exchange for this subsidy package. DLJ agreed to keep its corporate headquarters in NYC for at least 20 years and retain 1,950 employees. The deal also called for creation of 1,162 jobs over 12 years. |
| Clawbacks | ? |
| Background/Since then... | In addition, DLJ continued to play both sides of the river: DLJ execs joined New Jersey Gov. Christine Whitman to praise New Jersey's Business Employment Incentive Program saying the incentive program had been a key factor in their decisions to remain and expand in New Jersey. ( New York Times 5/29/97). |
| Corporate Notes | DLJ was a subsidiary of the Equitable Companies when the Equitable received a $9.3 million retention package in 1995, just one year after this deal. In November 2000, DLJ was acquired by and changed its name to Credit Suisse First Boston, another subsidy recipient. |
| A note on sources -- Information in this deal comes from GJNY's examination of project agreements obtained through Freedom of Information Law requests, as well as news reports, minutes and notes taken at board meetings, and communication with our allies. The entries are a work in progress. For more information about the documentation behind GJNY's database, or to let us know about any developments that are not yet reflected here, please contact us at gjny@ctj.org or (212) 414-9394. | |
| Date last updated: 8/13/03 | |