The Real Deal New York

JPMorgan Chase in talks to build $6.5B HQ at Hudson Yards

Bank seeking tax breaks, job-training grants from city

October 17, 2014 08:20AM

From left: Jamie Dimon, Hudson Yards and 270 Park Avenue

From left: Jamie Dimon, Hudson Yards and 270 Park Avenue

JPMorgan Chase is in talks with state and city officials to reach an agreement that would enable the bank to build a $6.5 billion corporate campus, including two skyscrapers, at Hudson Yards.

Chase was reportedly looking for $1 billion in concessions from the city and the state, according to the New York Times. Chase would build its towers on the north side of 33rd Street, between 10th and 11th avenues on two sites that are owned by Related Companies, according to the newspaper. The towers would house 16,000 employees.

Chase proposed — among other things — to cut the mortgage recording tax, transfer tax and sales taxes on construction materials. The bank also asked for job-training grants, a discount on power from the state and an underground passageway between the towers, for which the new no. 7 subway stop would have to be altered.

According to the newspaper, negotiations nearly fell through last week, but have regained momentum. An agreement, however, is far from certain.

“There’s no way that the city would entertain a demand for a billion dollars in additional incentives at Hudson Yards,” Alicia Glen, the deputy mayor for economic development told the newspaper. “We have always been willing to engage with them in a dialogue about how we could be helpful in making a move more feasible.”

Chase maintains that the deal would benefit New York, because the bank would have to buy development rights from the city and make annual payments to build the towers.

Chase’s corporate headquarters are currently divided between 270 Park Avenue and 383 Madison Avenue. [NYT] — Claire Moses

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