$138m building set for Chelsea.

IAC/InterActiveCorp announced that the Company's new headquarters, designed by Frank Gehry, will rise in the Chelsea district of Manhattan.

The IAC Building will begin construction by early 2004 and is expected to be fully completed by end of year, 2006.

IAC is developing the $138 million, 190,000-square-foot building on Eleventh Avenue between 18th and 19th Streets in Chelsea in partnership with The Georgetown Company (TGC), a privately-held diversified real estate company based in Manhattan.

Barry Diner, Chairman and CEO of IAC/InterActiveCorp, said, "As our need for space grew, we began to think it might be advantageous to create our own working environment. While much about the future is always unknown, we're confident that InterActiveCorp is at its early growth in a business sector that is at its beginning ... and we're at a stage where it's sensible to put down roots in a buoyant and exuberantly imaginative way.

"With more than 25,000 employees 116 locations in 31 states and 20 countries, and operations spread oat across Manhattan, we wanted one place where all our activities could find common ground tailored to the particular needs of a company engaged in the cutting edges of Internet ecommerce life. Three things came together that made the decision for us. The first was being able to work with Frank Gehry, the second was finding a unique location, and the third was finding a trusted building partner in The Georgetown Company.

"After months of planning, we have a design for a new building we believe will not only be great to work in, but will delight all who come within sight of it, in an area of the city that is just beginning its reformation."

As part of the building's core concept there will be a ground floor public space and a restaurant that will reflect and utilize all of the IAC brands.

Architect Frank Gehry said, "We're really excited to be working in New York City with Barry Diller and The Georgetown Company to create the new global headquarters of InterActiveCorp. The chance to create a culturally relevant corporate presence in Chelsea is a great opportunity for all of as and we intend to do something really special."

To help with financing, last week, the New York City Industrial Development Agency announced that HTRF Ventures LLC, a wholly-owned subsidiary of InterActiveCorp, has received preliminary approval for $80 million in Liberty Bond financing for the construction of a new headquarters building.

In addition to Liberty Bond financing, NYCIDA agreed to provide InterActiveCorp up to $2.55 million in sales tax exemptions, most of which will be earned through employment growth. InterActiveCorp will also be eligible for up to $500,000 in discounted energy through Con Edison's Business Incentive Rate Program. The company plans to be the sole tenant of the new budding and will locate more than 250 employees there and create almost 500 new jobs over ten years.