Company The Hearst Corporation and Hearst Communications, Inc.
Date Authorized 12/10/2002
Project Site 959 8th Avenue, Manhattan (other locations added in post-closing amendments)
Competing Sites Charlotte, North Carolina
Maximum  City Subsidy $23.9 million

(Possible total of $33.2 million if ICIP benefits are approved)

City Amount Tied to Job Retention

 $4.5 million

City Amount Tied to Job Growth

 Growth credits of $2,800 per employee per year for five years with a cap of $8 million
Type(s) of City benefits Preliminarily approval for Industrial Commercial Incentive Program (ICIP) savings -- $9.3 million (NOTE: this program is "as-of-right" rather than "discretionary." This means that any company meeting certain criteria can benefit, rather than having to apply for special approval from the IDA board. The preliminary approval here allows Hearst to be considered eligible.)

Sales and use tax exemptions -- Up to $12.5 million

Mortgage Recording tax exemption -- $7.5 million

Energy cost savings -- $3.9 million

Benefits from New York  State ?
Total Benefits Allowed ?
Benefits Distributed to Date (according to Local Law 69 Report FY) --
 
Promised Job Retention 1,844
Projected job growth ?
Total Promised Jobs ?
Jobs Reported in LL69 Report FY 2002 --
Layoffs ?
Length of Contract 25 years
 
Project Purpose

Hearst promised to retain 1,844 employees for a 25 year period and to construct a new headquarters at 959 8th Avenue designed by Foster.  In the absence of this package, the company threatened to move its headquarters to Charlotte, North Carolina.
Clawbacks ?
Background/Since then... ?
Corporate Notes Hearst Corporation is a communications firm with employees in 23 locations throughout NYC. The company employs 20,000 people worldwide.
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