| Company | Pfizer |
| Date Approved | 6/10/03 |
| Project Site(s) | 685 Third Avenue, Manhattan |
| Competing Sites | NJ, MI |
| Maximum City Subsidy | $46.1 million |
|
$14.3 million |
|
$19.2 million |
| Type(s) of City benefits |
Sales tax breaks
-- up to $23 million ($10 million for retention, $13 million for growth)
Real estate tax breaks -- $10.5 million ($4.3 million for retention and $6.2 million for growth) Energy benefits -- $12.6 million ($6.5 million in Con Ed BIR energy benefits and $6.1 million in NYCPUS energy benefits) |
| Benefits from New York State | Cash grant from Empire State Development Corporation -- $1.4 million |
| Total Benefits Allowed | $47.5 million |
| Benefits Distributed to Date (according to LL69 Report FY 2002) | -- |
| Promised Job Retention | 5,537 |
| Promised Job Creation | 2,000 |
| Total Promised Jobs | 7,537 |
| Jobs Reported in LL69 Report FY 2002 | -- |
| Layoffs | Since Pfizer's April 2003 acquisition of Pharmacia, over 5,000 Pharmacia jobs (out of a planned total of 6,050) and 463 Pfizer workers have been fired. In April 2005, the company announced a restructuring that may result in up to 10,000 layoffs company-wide. |
| Length of Contract | 15 years |
| Project Purpose |
Pfizer will expand its Manhattan headquarters by transferring 1,000 jobs from New Jersey, Michigan, Missouri and Illinois, and promises to create an additional 1,000 jobs over the next five years. |
| Clawbacks | The deal is reported by IDA officials to contain strong clawback provisions (recapture of twice the benefits distributed) if jobs are not created as promised. |
| Background/Since then . . . |
Recent Update: In 2007 Pfizer announced it would be closing its Brooklyn
plant and laying off 600 workers, but it will not have to pay any penalties. Earlier Background: The Pfizer move would be the largest corporate expansion in NYC in the last two years and the largest expansion project in the state since November, 2000. Pfizer and its subsidiaries had previously received subsidies for locating jobs in New Jersey, Michigan, and Missouri. Read coverage of the impact of Pfizer's move on New York, Illinois, and Michigan. Read a subsidy litigation report from Good Jobs First on Pfizer's attempt to eliminate a Maine program that reduces prescription drug prices for state residents. The same day the move was announced, the AP reported a meeting between Pfizer CEO Hank McKinnell and New Jersey's governor Jim McGreevy in which Mr. McKinnell declared: "Pfizer remains firmly committed to New Jersey, and for that reason, we are planning to stay and make a major investment in the state." Nine people testified
against Pfizer's proposed $46.1 million subsidy at the IDA's 6/9/03 public
hearing, citing the drug giant's inflated prices, high profits, and efforts
to defeat state laws that would reduce drug costs in Medicare and Medicaid
programs. Read testimony from: |
| Corporate Notes |
Pfizer is the largest pharmaceutical company
in the world, after its April 2003 acquisition of Pharmacia Corporation.
|
| 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: 4/6/05 | |