| Company | Bank of New York (see separate entry on FC Hanson, developer of the building that will house BONY) |
| Date Approved | 9/10/2002 |
| Project Site | Atlantic Terminal (at Flatbush) |
| Competing Sites | ? |
| Type of transaction/ Company type | Commercial retention/Finance |
| Maximum City Subsidy | |
|
$37.5 million |
|
0 |
| Type(s) of City benefits |
Special Community Development Block Grant (CDBG) from
the Federal allocation to
the Empire State Development Corporation (ESDC) following the September 11th
attacks. To learn more about these funds, check out
Reconstruction Watch
publication #4. $37.5 million in CDBG funds Possible additional $2.5 million in CDBG funds and $2 million in city sales tax exemptions IF the city hasn’t found a tenant for half the space at 100 Church Street, which BONY must vacate due to government securities clearance requirements, by the end of 2003. [NOTE: BONY's decision to sell the lease at 100 Church Street back to the building's landlord releases the city from this commitment.] |
| Benefits from New York State | 0 |
| Total Benefits Allowed | $37.5 million |
| Benefits Distributed to Date (according to Local Law 69 Report FY) | -- |
| Promised Job Retention | 1,400 in Atlantic terminal; 6,160 in Lower Manhattan; and 140 in Midtown |
| Job recruitment | |
| Projected job growth | 0 |
| Total Promised Jobs | 7,700 |
| Jobs Reported in LL69 Report FY 2002 | -- |
| Layoffs | ? |
| Length of Contract | At least seven years, according to comments made by EDC president Andrew Alper |
| Project Purpose |
To retain the Bank of New York in New York City after the Federal government ordered the company, which clears a significant amount of Federal securities, to leave lower Manhattan following the attacks of September 11th. |
| 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... |
The deal to retain the Bank of New York in
Brooklyn was facilitated by the provision of $113.9 million in
Liberty Bonds to
finance the construction of a new office tower where BONY will be housed.
The tower is being developed by FC Hanson, a
division of Forest City Ratner Company.
In December 2003, BONY sold the space it is giving up in lower Manhattan (1 Hudson Square and 100 Church Street) back to the buildings' landlords, rather than subleasing it. This move frees the city from its commitment to find a tenant for 100 Church Street or provide additional subsidies. |
| Corporate Notes | The Bank of New York, founded in 1784 by Alexander Hamilton, is the United States’ oldest bank. It provides a broad range of financial services to individual clients, other banks, and government. |
| 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: 12/16/03 | |