Canadian bank will move U.S. headquarters to new tower.Mayor Rudolph W. Giuliani announced that CIBC CIBC Canadian Imperial Bank of Commerce CIBC Centres Interinstitutionnels de Bilan de Compétences CIBC Commonwealth Institute of Biological Control (Trinidad) CIBC Commercial International Brokerage Company (Canadian Imperial Bank of Commerce The Canadian Imperial Bank of Commerce TSX: CM NYSE: CM, better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). ) World Markets will remain in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and retain its U.S. headquarters here for the next 18 years. Under the terms of the agreement, CIBC World Markets CIBC World Markets is the investment banking division of the Canadian Imperial Bank of Commerce. It helps governments, large companies, and other large institutions obtain capital and credit and is a primary dealer in U.S. Treasury securities. will retain its current 2,712 jobs, and anticipates the possible creation of an additional 2,800 new jobs over the 18-year term of the agreement. CIBC World Markets also plans to consolidate its New York City operations into a 1.2 million SF office tower at 300-310 Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. that is being developed by Brookfield Financial Properties. "Today's agreement with CIBC is important to sustaining the healthy economy of New York City The economy of New York City is one of the largest regional economies in the United States. The city is a global center for business and commerce. It is one of the leading financial cities of the world and a premier headquarters location for leading global financial services and will help the City maintain its position as the Business Capital of the World," said Mayor Giuliani. "CIBC generates approximately $75 million in annual tax revenue to New York City and, with the addition to the thousands of jobs retained and the thousands of new jobs to be created, this is great news for our city." CIBC World Markets is the global marketing name for CIBC's investment banking affiliates and subsidiaries around the world. CIBC had considered moving approximately 2,200 of its current jobs out of New York City and explored several relocation options, including Jersey City and Toronto. However as a result of negotiations with the New York City Industrial Development Agency (IDA Ida (ē`dä), city (1990 pop. 91,859), Nagano prefecture, central Honshu, Japan, on the Tenryu River. It is an agricultural market and railway junction. ), the company has agreed to remain and expand in the City, The company currently occupies four different Manhattan locations, including approximately 500,000 SF at One World Financial Center in Battery Park City. "This transaction demonstrates CIBC's strong commitment to New York City and our determination to gain a greater share of activity in U.S. capital markets," said David Kassie, chairman and chief executive officer, CIBC World Markets. "Eight years ago, we developed a strategy designed to make us a major force in U.S. investment banking, focused on the mid-market. That strategy has worked remarkably well. This transaction will allow us to continue to pursue this growth strategy in an environment that is more efficient and cost-effective. CIBC World Markets is very proud to be a part of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of City's commercial renaissance and this agreement demonstrates our confidence that the city will remain preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae among the world's business and financial centers." CIBC World Markets will consolidate its New York City operations into one location at 300-310 Madison Avenue. CIBC will occupy approximately 850,000 SF within the 35-story building that is scheduled for completion in 2004. Under the terms of the agreement CIBC will receive $13.6 million net present value (NPV NPV See: Net present value ) in sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. exemptions for expenditures associated with base building construction, tenant improvement work and purchase or ease of machinery and equipment for the retention of 2,712 jobs in the City. The company is also eligible to receive discounted energy through Con. Edison's Business Incentive Rate, with an estimated value of $2.44 million (NPV) over a one-year period. In line with 811 other retention agreements negotiated by the Giuliani Administration, the agreement calls for the repayment of some or all of the benefits taken if the company does not maintain this employment level for the 18-year term. CIBC win also be eligible to receive a maximum of $15.9 million (NPV) in additional sales tax exemptions in consideration of its projected creation of 2,800 new jobs in the City. CIBC will be able to earn benefits toward this amount as it certifies that it has added new jobs over its initial retention base. "Mayor Giuliani's commitment to further improving the business climate in New York City has helped us retain a company with an outstanding operating history and international reputation," said Deputy Mayor for Economic Development and Finance, Robert M. Harding. "With access to 20 million potential customers, a high caliber work force and a highly developed business infrastructure, New York City offers the combination of factors that businesses need to succeed. CIBC's decision to keep its U.S headquarters in New York City is evidence of our City's economic strength and robust international business community." |
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