Printer Friendly

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 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. Instead, the company will remain in Manhattan at 535 Madison Avenue 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 (EDC) and approved by the City's Industrial Development Agency (IDA), 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 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 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.
COPYRIGHT 1996 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Dillon, Read and Co. Inc.
Publication:Real Estate Weekly
Date:Oct 16, 1996
Words:463
Previous Article:Third quarter slow, but outlook bright for Westchester.
Next Article:Kmart opens in One Penn Plaza.
Topics:


Related Articles
Former Dillon Read chief joins LaSalle Partners.
BRIMHALL PLANS TO QUIT KEY JOB AT CITY HALL; 20-YEAR T.O. MANAGER TO RETIRE.
DILLON FAST PUTTING PAST BEHIND HIM : NO. 21 WASHINGTON (5-2, 4-1) AT USC (5-3, 3-2).
TROJANS CAN'T MUSH WITH HUSKIES : OFTEN HURT BY USC'S RUSH IN THE PAST, WASHINGTON NOW MASTER OF GROUND GAME.
COURT TO HEAR CASES ON FIRINGS AFTER DISABILITY : WORKERS CLAIM DISCRIMINATION.
The City of Ember.
The People of Sparks.
American Financial nets bank branches.
`FACTOTUM' CAPTURES REALITY OF BUKOWSKI, THE BARD OF L.A.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters