| Company | Credit Suisse First Boston |
| Date Announced | 1/24/1995 (deal closed 12/22/1995) |
| Project Site | 11 Madison Ave, 300 Park Ave, 315 Park Ave South, 237 Park Manhattan |
| Competing Sites | ? |
| Maximum City Subsidy | $50,501,500 |
|
$27,300,000 sales tax retention benefits |
|
$1,500/employee to a cap of $17,700,000 in sales tax growth credits |
| Type(s) of City benefits |
Energy benefits
(BIR
program) -- $5,500,000 Sales tax benefits -- Up to $45,000,000 PILOT - $12,542,000 |
| Benefits from New York State | ? |
| Total Benefits Allowed | $63,042,000 |
| Benefits Distributed to Date (according to LL69 Report FY 2002) | $31,242,000 |
| Promised Job Retention | 3,704; later raised to 4,397 |
| Projected job growth | 5,550 |
| Total Promised Jobs | 9,947 |
| Jobs Reported in LL69 Report FY 2002 | 6,800 |
| Layoffs | In February 1995, just one month after accepting this $50.5 million "job creation" subsidy package to support its move, investment bank CSFB announced 135 layoffs in New York City. In July 2000, following its acquisition of Donaldson, Lufkin and Jenrette, 2,000 jobs were cut. Soon after, the firm, a leader in underwriting shares of technology companies had cut another 500 employees in response to the precipitous falloff in fundraising by new media and telecom companies. |
| Length of Contract | 20 years |
| Project Purpose | To retain CSFB in New York City and ensure a certain investment in tenant improvements at 11 Madison and 5 WTC. |
| Clawbacks | ? |
| Background/Since then... | CSFB moved into One Madison Avenue, a building which owner MetLife vacated in order to lease it out in 2001. |
| Corporate Notes | In July 2000, CS First Boston acquired Donaldson, Lufkin & Jenrette, a competing investment bank that's also an NYC subsidy recipient. DLJ was formerly the subsidiary of NYC subsidy recipient Equitable Companies. |
| Comments | |
| 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: 7/25/03 | |