Company Aon Service Corporation
Date Authorized 9/10/2002 
Project Site 55 East 52nd Street (Park Avenue Plaza) and 199 Water Street, Manhattan
Competing Sites ?
Type of transaction/ Company type Straight lease, commercial retention / Insurance
Maximum  City Subsidy $15 million

City Amount Tied to Job Retention

$4.2 million

City Amount Tied to Job Growth

$4,000 per employee per year to a cap of $5.2 million
Type(s) of City benefits

Sales tax exemption -- $9.4 million

PILOT savings -- $5 million

Energy savings -- $600,000

Benefits from New York  State Community Development Block Grant (part of the WTC Job Creation and Retention Program) -- $5.3 million
Total Benefits Allowed $20.3 million
Benefits Distributed to Date (according to Local Law 69 Report FY) --
 
Promised Job Retention 1,309 (700 downtown)
Job recruitment  
Projected job growth  
Total Promised Jobs 1,309
Jobs Reported in LL69 Report FY 2002 --
Layoffs ?
Length of Contract 15 years
 
Project Purpose

To retain AON in NYC following the loss of its WTC 2 offices and almost 200 of its employees in the attacks of September 11th. The subsidy will help renovate and equip offices at the two project sites. 

Clawbacks Comments from city development officials indicate that all companies receiving post 9/11 CDBG funds must agree to keep a base number of employees in NYC for at least seven years or face a double recapture penalty.
Background/Since then... Aon employees began moving into new downtown office space in June 2003.
Corporate Notes Aon is a Fortune 500 company headquartered in Chicago. It provides a broad range of insurance services including risk management, retail, reinsurance and wholesale brokerage, claims management, specialty services, and human capital consulting services. Aon employs 55,000 people in more than 125 countries.
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: 07/24/03