| Company | Prudential Securities |
| Date Authorized | 12/18/1992 (deal closed 8/1/1995) |
| Project Site | One New York Plaza (Water and Broad) and One Seaport Plaza (Water and Fulton) Manhattan |
| Competing Sites | Houston, San Francisco, Los Angeles and Jersey City |
| Maximum Subsidy | $106.2 million |
|
$29,500,000 in sales tax retention benefits |
|
? |
| Type(s) of City benefits |
Sales tax exemptions -- $29.5 million Property and commercial rent tax breaks -- $24.1 million Mortgage recording fee waiver -- $4.2 million Energy benefits -- $48.4 million |
| Benefits from New York State | Sales tax breaks and mortgage recording fee reductions -- $16.7 million |
| Total Benefits Allowed | $122.9 million |
| Benefits Distributed to Date (according to LL69 Report FY 2002) | $26,844,000 |
| Promised Job Retention | 5,000 |
| Projected job growth | 0 |
| Total Promised Jobs | 5,000 |
| Jobs Reported in LL69 Report FY 2002 | "Company has not granted NYCEDC permission to publish job numbers." |
| Layoffs | In the last quarter of 2000, Prudential Securities decided to get out of the corporate finance business altogether. Shuttering most of its investment banking operations in favor of focusing on its brokerage business, Prudential sent nearly 600 employees packing in the last two months of 2000. |
| Length of Contract | 22 years |
| Project Purpose | In exchange for the subsidy package, Prudential promised to keep its headquarters and a certain number of employees in lower Manhattan for 22 years. |
| Clawbacks | ? |
| Background/Since then... | In 2003, Prudential Financial and and Wachovia Corporation combined their retail brokerage businesses to form the third largest full service retail brokerage ($532.1 billion in client assets as of March 2003) in the US: Wachovia Securities, LL. |
| Corporate Notes | Prudential provides customers with a wide variety of financial, real estate, and insurance services, particularly life insurance. |
| 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: 08/7/03 | |