| Company | Morgan Stanley |
| Date Authorized | 12/1/1993 (deal closed 5/15/1995) |
| Project Site | 1585 Broadway, Manhattan |
| Competing Sites | Stamford, Conn. |
| Maximum City Subsidy |
$49,372,000 plus PILOT
savings (Exact amount of PILOT unknown. Estimates based on news sources put
total benefits at $70.8 million) NOTE: On June 2, 2005, the city and state announced that an additional $16 million in Federal 9/11 funds from the Job Creation and Retention Program would be made available to Morgan Stanley for moving 2,878 employees downtown and retaining 9,700 jobs citywide. |
|
? |
|
0 |
| Type(s) of City benefits |
PILOT savings - ? $8,516,000 listed already provided in LL69 report. $21.4 million in real estate tax incentives listed in news accounts. Sales Tax Abatement - $49,372,000 |
| Benefits from New York State | ? |
| Total Benefits Allowed | ? |
| Benefits Distributed to Date (according to LL69 Report FY 2002) | $66,465,000 |
| Promised Job Retention | 4,300 |
| Job recruitment | |
| Projected job growth | |
| Total Promised Jobs | 4,300 |
| Jobs Reported in LL69 Report FY 2002 | "Company has not granted NYCEDC permission to publish job numbers." |
| Layoffs | Over 2001, Morgan Stanley trimmed about 6% of its total workforce. The CEO stated publicly in March of 2002 that he believed no more layoffs would be necessary. However, In November 2002, Morgan Stanley reportedly fired 950 brokers. |
| Length of Contract | 18 years (terminates 12/31/2011) |
| Project Purpose | Morgan Stanley agreed to extend its lease, make certain improvements to project property, and not move employees to Stamford, CT. |
| Clawbacks | Yes, under certain circumstances recapture payments are required. |
| Background/Since then... |
On September 11, 2001, Morgan Stanley lost 15
employees working in WTC 2. The remaining 3,700 located there were
transferred to existing Morgan Stanley offices in NYC and New Jersey. In
October 2001, Morgan Stanley sold its new building at 745 7th Avenue to
Lehman Brothers, which also had workers displaced by the destruction of the
World Trade Center.
On June 2, 2005, the Mayor and Governor announced that Morgan Stanley would be accepting a grant of up to $16 million in Federal 9/11 funds to move 2,300 employees to Lower Manhattan, grow an additional 578 positions there over the next five years and retain 9,700 workers citywide. The company may also receive additional savings through Con Edison's Business Incentive Rate Program. |
| Corporate Notes | Investment banking giant Morgan Stanley merged in 1997 with retail broker Dean Witter. As of 2003, the company has $421 billion in assets under its management, and over 600 offices in 27 countries. |
| 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: 6/10/05 | |