Thanks, Sweet Government Incentives!
Chase Will Be Building at Ground Zero

After months of negotiations, JP Morgan Chase will announce plans to build a 42-story tower at Ground Zero. Government officials had been trying to entice the third-largest bank in the world to move downtown, as a sign the area would flourish once all the construction is complete. Chase wanted incentives and subsidies, much like the $650 million Goldman Sachs incentive deal, in order to be convinced to move downtown, but officials were wary. From the NY Times:

Officials in both the Spitzer and Bloomberg administrations have privately renounced the Goldman deal, blaming former Gov. George E. Pataki. They wanted to avoid similar recriminations in coming to an agreement with Chase.

One official familiar with the Chase deal said that the city and the state ultimately agreed to provide the bank with tax breaks, discounted electric power and rent subsidies worth about $100 million, most of which are available to tenants moving to the trade center site.

But it depends on how the dollars are counted. For example, Chase will get a rent subsidy worth about $50 million a year for about 15 years, or $5 a square foot for 750,000 square feet. Tenants at the developer Larry Silverstein’s recently rebuilt 7 World Trade Center got the same deal.

JPMorgan Chase will pay the Port Authority $300 million for a 99-year lease.

The bank will keep its world headquarters at 270 Park Avenue, but will move its investment bank headquarters from 277 Park Avenue to the new $1.3 million office tower. The building would be partially situated on the spot where the Deutsche Bank sits. The Daily News reports that the new tower will open in 2013.

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on June 14, 2007 10:00 AM

Comments [rss]

bigtimetopbanana

#6 Investment Bank HQ is now at 277 Park. Over the street from World HQ 270 Park.

One irony here is that Deutsche moved into the former JPMorgan building at 60Wall after the JPMorgan Chase merger. Now JPMorgan Chase moving into the former Deutsche space.

guest

#22, it's hate speech. Don't try to turn it into nothing.

Drew

Does anyone know where that graphic came from? I'm curoius about the "Extent of possible/potential sub-surface tie-backs on privately owned property." I'm no civil engineer, anyone know what this means? (As some who lives on that privately owned property, I'm a little concerned!)

guest

oh boo hoo! they said something that offended me; get over it you whiny little bitches

matty

it's 1.3 billion not million.

Outter Burrougher

#19, you can't call him out on being "ironic" if you're going to be anonymous yourself!

guest

#18, ironically posted by an anonymous commenter.

Another beautiful day in NY!

guest

I think it's time to ban anonymous comments, Gothamist. It just brings out the Nazis.

guest

why are you calling the world trade center site ground zero? is this blog now called touristist?

and why does gothamist allow these anti-semetic comments that show up on every thread? can't you block that hateful idiot's IP?

guest

What did the Bible called them? besides usury.

JMH

[10], I think you may as well wish ass cancer on [4] while you're at it.

Why the fuck does Chase, with all their billions upon billions of dollars, get a subsidy to move down here? How about the city government gives ME a subsidy to move into lower Manhattan.

guest

#8, I hope you get ass cancer. Anti-semitic prick.

Tim N.

Turning off guest comments now...

guest

$1.3 Million, what a deal, can I buy it as a condo!!

guest

Why is the third largest investment bank in the world getting any kind of incentive or discount? Chase should be ashamed of themselves for being such parasites, especially where Ground Zero is concerned.

Typical investment banking mentality, doing whatever it takes to save a few bucks. These people are disgusting.

Reality Czech

screw them! They should get nothing and like it! Thwey should be happy to be in NYC. If they want to go somewhere else let them, there are plenty of aother companies who want to be here. It's not like they don't steal enough money as it is, now they have to steal from NYC. Give me a break!