Dillon Read to keep 620 jobs in the city.Mayor Rudolph W. Giuliani has announced an agreement by one of America's oldest and most prestigious investment bank, Dillon, Read & Co. Inc., to 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. for the next 20 years, keeping its 620 jobs here and creating a projected 664 new jobs. Dillon Read has considered relocating to Stamford, Connecticut Stamford is a city in Fairfield County, Connecticut, United States. According to 2006 Census Bureau estimates, the population of the city is 119,261, making it the fourth largest city in the state. . Instead, the company will remain in Manhattan at 535 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. and will keep its emergency disaster recovery center in Long Island City. Over the term of the agreement, negotiated through the New York City Economic Development Corporation Overview New York City Economic Development Corporation (NYCEDC) is a non-profit local development corporation that promotes economic growth across New York City's five boroughs. (EDC EDC See: Export Development Corp. ) and approved by the City's 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. ), Dillon Read will receive a maximum of approximately $3.65 million in benefits if it is able to maintain its current 620 jobs in New York City. The City's portion of these benefits is $1.15 million. The City is also offering a maximum of an additional $2.15 million if Dillon Read is able to create the projected 664 new jobs. The company generates about $16.6 million annual in total City tax revenue. As a result, the payback period Payback Period The length of time required to recover the cost of an investment. Calculated as: to the City is 2.4 months. "Dillon Read is an important part of the City's financial community, and we are very glad it has decided to stay here and grow for the next 20 years," said Mayor Giuliani. "This agreement shows that Dillon Read is willing to commit to the future of New York City. It is because of companies like Dillon Read that New York City is able to maintain its status as the financial capital of the world." Including this agreement, the Giuliani administration has now retained 19 major companies, representing 48,564 jobs retained and a projected 16,434 new jobs over the next 20 years through its corporate retention program. The total tax revenue generated by these companies to the City is $724.3 million a year for the next 10 to 20 years. Of the City's total contribution to Dillon Read's benefit package, 65 percent is contingent upon growth by the company. The maximum $3.65 million in benefits linked to the retention of Dillon Read's 620 current jobs includes 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 as well as energy discounts. The benefits for the projected 664 new jobs would include a maximum real estate tax benefit of approximately $2.15 million. In the event the company does not maintain the specified job level, the agreement calls for the repayment of some or all of the benefits taken, as well as penalties, and/or a reduction or elimination of any unused benefits. In addition, the company cannot take advantage of any benefits tied to job growth until it certifies that it has created the specified number of additional jobs above and beyond those it has agreed to retain. |
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