The New York Stock Exchange (NYSE at www.nyse.com) is only moving across the street. New York economic development officials, however, have deemed the financial giant's expansion important enough to merit $160 million in tax exemptions.
Under the terms of the expansion agreement, New York Mayor Rudolph Giuliani (www.ci.nyc.ny.us) and the state's Empire State Development Corp. (www.Empire.state.ny.us) will be responsible for site acquisition and for construction of the new 650,000-sq.-ft. facility, expected to open in late 2001. The NYSE will then rent the new facility. The agreement's 50-year term calls for an initial facility rent of $10 million per year. Thereafter, building rent will increase by 15 percent at 10-year intervals. NYSE will spend $350 million for technology and trading-floor systems in its new facility.
Once the new trading center is open, NYSE's current operations base, which was built in 1902, will be used for NYSE's executive and administrative offices. In addition, the building will house a city police substation. As part of the deal, the city and state are also planning to build an 800,000-sq.-ft. tower above the NYSE facility, which will create the first new downtown office tower in a decade.
-- The latest and biggest location incentive packages for new facilities and expansions, drawn from Site Selection's exclusive New Plant database, which has tracked corporate expansion patterns for more than 25 years.
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