| Company | Metropolitan Life Insurance |
| Date Authorized | 5/10/2001 (deal closed 1/3/02) |
| Project Site(s) | 27-01 Bridge Plaza North, Long Island City, Queens |
| Competing Sites | Newark, NJ; Jersey City, NJ |
| Type of transaction/ Company type | Commercial retention / Insurance & Financial |
| Maximum City Subsidy | $16,506,250 |
|
$10,722,250 in sales tax retention benefits |
|
$3,800/employee to a cap of $3,460,000 |
| Type(s) of City benefits |
Sales tax breaks
-- up to $14,182,250
Energy benefits (BIR program) -- $1,523,000 Mortgage Recording Fee Waiver -- $801,000 |
| Benefits from New York State | Grants and loans for worker training and renovation costs -- $4.3 million |
| Total Benefits Allowed | $20,806,250 |
| Benefits Distributed to Date (according to LL69 Report FY 2002) | $3,323,000 |
| Promised Job Retention | 1,750 (1,000 to Brewster building in Long Island City) |
| Job recruitment | |
| Projected job growth | 558 |
| Total Promised Jobs | 2,308 |
| Jobs Reported in LL69 Report FY 2002 | 1,876 |
| Layoffs | ? |
| Length of Contract | 20 years |
| Project Purpose | This subsidy induced Met Life to move up to 1,000 workers to Long Island City (A possible 1,700 altogether, 700 more projected pending a zoning ruling that would allow the construction of an addition to building.) |
| Clawbacks? | ? |
| Background/Since then . . . |
Approximately 1,800 employees must vacate Met
Life's property at One Madison Ave. in order for the building to be leased
out to Credit Suisse First Boston, another subsidy recipient. Westchester offered Met Life $307,000 in sales tax savings for the same employees. The company later moved 100 employees there in exchange for subsidies. |
| Corporate Notes | MetLife is one of the largest insurers in the US. It also sells other financial services to groups and individuals. Insurance affiliates include GenAmerica, Metropolitan Property and Casualty, and Texas Life. Its subsidiary, State Street Research sells asset management services. The company entered the retail banking business in 2001 when it purchased New Jersey-based Grand Bank and renamed it MetLife Bank. |
| Comments | "Offering to recite train schedules from Penn Station to Newark, MetLife chairman and chief executive Robert Benmosche said his company was serious about considering New Jersey's offer. 'Without the money, we would be in New Jersey,' Benmosche admitted." (Katia Hetter, Newsday, 5/31/01) |
| 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: 07/25/03 | |