| Company | National Association of Securities Dealers, Inc. (NASD), NASDAQ, and the American Stock Exchange |
| Date closed | 12/19/2000 |
| Project Site |
86 Trinity, 1 Liberty, 65 Broadway, 1500 Broadway |
| Competing Sites | New Jersey |
| Maximum City Subsidy | $52 million ($70.1 million with possible project expansion) |
|
$43.9 million |
|
$18.1 million (tied to project expansion option - not taken) |
| Type(s) of City benefits |
Without project expansion -- $52 million o $8.1 million in capital grant savings (must be used by 6/30/2004 or it is forfeited) o $3.4 million in energy cost savings o $7 million in sales tax savings o $33.5 million in real property tax savings With project expansion -- $70.1 million (NOT TAKEN) o $10 million in capital grant savings (must be used by 6/30/2004 or it is forfeited) o $3.4 million in energy cost savings o $1.6 million in Mortgage Recording Tax Savings o $10 million in sales tax savings o $45.1 million in real property tax savings |
| Benefits from New York State | ? |
| Total Benefits Allowed | ? |
| Benefits Distributed to Date (according to Local Law 69 Report FY 2002) | $8,759,000 |
| Promised Job Retention | 760 |
| Job recruitment | 19 "key" employees to be transferred from Washington DC |
| Projected job growth | 779 |
| Total Jobs | 1558 |
| Jobs Reported in LL69 Report FY 2002 | 1,012 |
| Layoffs | ? |
| Length of Contract | 20 years |
| Project Purpose | The package provides incentives for the NASDAQ and the American Stock Exchange, two financial markets owned by the National Association of Securities Dealers, to build a new trading floor and combined HQ. As part of the deal, NASD agreed to move its HQ from Washington. NASD Chairman Frank Zarb reportedly told city and state officials that he wanted to reopen the negotiations on his package, given the far larger subsidy package proposed for the New York Stock Exchange (New York Times, 2/26/99). |
| Clawbacks | Up to 8% (62 people) can be fired or transferred with no penalty. If between 8% and 20% of workers are laid off, future benefits will be reduced. If over 20% are laid off, the agreement can be terminated. |
| Background/Since then... |
Under
the leadership of chairman Frank G. Zarb, the National Association of
Securities Dealers (NASD), has moved to build a financial market that he
hopes will replace the older New York Stock Exchange as the world's
premier securities market. NASD, which already runs the NASDAQ exchange,
has acquired the American Stock Exchange and is planning to build a new
headquarters for both in Times Square, in part to differentiate the
exchanges from the Wall Street-based New York exchange. At the 12/9/03 IDA board meeting, the three-company deal was split into three separate deals to recognize the spin-off of NASDAQ and buy-out by members of AMEX. Revised terms include: Forfeit $21.58 million in benefits. As of July 03 agree to new base numbers: AMEX – 350; NASD – 285; NASDAQ – 184. They will collectively pay IDA $1.7 million fee for the restructuring. In March 2004, the members of Amex voted to repurchase the exchange from the NASD. |
| Corporate Notes | At the time this deal was signed, NASD owned both the NASDAQ and the American Stock Exchange. |
| 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: 2/4/04 | |