| Company | Fahnestock & Company |
| Date Announced | 5/20/1997 (deal closed 8/28/1997) |
| Project Site | 125 Broad St, 110 Wall St, 780 & 805 Third Ave, Manhattan |
| Competing Sites | Secaucus, N.J. |
| Maximum City Subsidy | $1,151,500 |
|
$500,000 in sales tax retention benefits |
|
$1,500/employee to a cap of $250,000 |
| Type(s) of City benefits |
Sales tax breaks -- Up to $750,000 Energy discounts (BIR program) -- $400,000 |
| Benefits from New York State | Cash grants from the Empire State Development Corporation -- $440,000 |
| Total Benefits Allowed | $1,591,500 |
| Benefits Distributed to Date (according to LL69 Report FY 2002) | $442,000 |
| Promised Job Retention | 398 |
| Projected job growth | 125 |
| Total Promised Jobs | 523 |
| Jobs Reported in LL69 Report FY 2002 | 400 |
| Layoffs | ? |
| Length of Contract | 16 years |
| Project Purpose | This package was designed to convince Fahnestock & Company to stay in Manhattan rather than move to New Jersey as it threatened to do. Up to $250,000 are available only if the company adds jobs above a base level of approximately 400. |
| Clawbacks | ? |
| Corporate Notes | Fahnestock & Co. Inc. is a securities firm with 89 branch offices throughout the US, a member of "all principle exchanges and Securities Investor Protection Corporation (SIPC)." Through its subsidiary, Freedom Investments, Inc., the company sells online discount brokerage and dollar-based investing services. |
| Comments | According to Charles Millard, then President of the New York City Economic Development Corp., Fahnestock had been "aggressively" courted by the New Jersey Department of Commerce and Economic Development, on behalf of the owners of One Harmon Meadow Boulevard, a five-story office building in Secaucus. New Jersey had offered about "four times" the New York package, said Millard (New York Times, 5/21/97). |
| 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: 8/11/03 | |