| Company | American International Group (AIG) |
| Date Authorized | 11/12/1996 (deal closed 12/31/1996) |
| Project Site(s) | 70 Pine St. (HQ); 72 Wall; 80 Pine; 160 Water; 163 Front; 7 Hanover; 99 John St.175 Water St. & others |
| Competing Sites | Jersey City, NJ |
| Maximum City Subsidy | $58,871,000 |
|
$13,670,000 |
|
$2,000/worker growth credits to a cap of $22,356,000 |
| Type(s) of City benefits |
Energy benefits (BIR)
-- $11,292,000 Sales Tax Benefit -- up to $25,223,000 Real property tax savings (through PILOT) -- up to $22,356,000 PILOT growth credits -- $2,000 per eligible employee Industrial development bonds -- $563 million |
| Benefits from New York State | ? |
| Total Benefits Allowed | ? |
| Benefits Distributed to Date (according to LL69 Report FY 2002) | $9,003,000 |
| Promised Job Retention | 5,180 |
| Promised Job Creation | 1,858 |
| Total Promised Jobs | 7,038 |
| Jobs Reported in LL69 Report FY 2002 | 5,180 |
| Layoffs | ? |
| Length of Contract | 15 years |
| Project Purpose | Insurance giant American International Group (AIG) agreed to expand its operations to 175 Water St (keeping its headquarters at 70 Pine St) rather than moving some jobs to Jersey City. |
| Clawbacks | If the company falls below a certain level of employees as a result of moving them out of the city, the IDA can collect recapture payments with penalty fees. |
| Background/Since then . . . |
The city had already given the company a round of subsidies in 1993 after it threatened to move to Georgia. AIG had used just over $4 million of these subsidies at the time of the 1996 deal. And that wasn't even the first time. In 1979 AIG received tax credits for expanding operations in NYC. The 1979 state incentives to AIG and two other companies totaled more than $10.5 million. In March 2002, AIG changed its agreement from a bond structure to a straight-lease structure. No additional benefits were conferred. |
| Corporate Notes | AIG is one of the biggest international insurance and financial services companies in the world, with operations in approximately 130 countries and jurisdictions. In the United States, AIG companies are the largest underwriters of commercial and industrial insurance, and AIG American General is a top-ranked life insurer. AIG also has one of the largest U.S. retirement savings businesses through AIG SunAmerica and AIG VALIC. |
| 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: 08/4/03 | |