| Company | Empire Insurance Group (See also Empire HealthChoice & FC Myrtle deal) |
| Date Announced | 10/11/1996 (deal closed 7/11/96) |
| Project Site | Brooklyn Renaissance Plaza (350 Jay Street) |
| Competing Sites | Valley Forge, PA |
| Type of transaction/ Company type | Commercial Retention / Insurance |
| Maximum City Subsidy | $8.74 million |
|
? |
|
$0.3 million |
| Type(s) of City benefits |
Mortgage recording
tax waiver - $4.8 million
Sales tax exemptions - $2 million Tax credits for job growth at $1,500 per new job for five years - $300,000 Property tax breaks - $1.2 million |
| Benefits from New York State | ? |
| Total Benefits Allowed | ? |
| Benefits Distributed to Date (according to Local Law 69 Report FY) | $64,000 |
| Promised Job Retention | 736 |
| Projected job growth | 50 |
| Total Promised Jobs | 786 |
| Jobs Reported in LL69 Report FY 2002 | 736 |
| Layoffs | ? |
| Length of Contract | 20 years |
| Project Purpose | Empire agreed to move to Brooklyn Renaissance Plaza and to remain in NYC for the next 16 years. |
| Clawbacks | ? |
| Background/Since then . . . |
Brooklyn Renaissance Plaza is a development in
which Empire's parent company, Leucadia National Corp., is the principal
investor. Empire threatened to move to
another Leukadia-owned complex in Valley Forge, Pa., if it did not get the
subsidies.
The complex deal was brokered by lawyer Michael Bailkin, dubbed "Mr. Incentive" by Crain's New York Business (6/17/96). |
| Corporate Notes | Empire Group is a wholly owned subsidiary of Leukadia National Corp. The Empire Group comprises five firms, of which Empire Insurance Company is the leader. The companies, which also include Allcity Insurance Company, Centurion Insurance Company, Gould Dente Agency and Oscar Katz Corp., write property and casualty insurance as well as insuring livery cabs, broker taxi medallions and fill other specialized insurance and financial service niches. |
| 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: 07/07/03 | |