The Real Deal New York

JPMorgan’s proposed $1B in tax breaks a “nonstarter”: mayor

Bank in talks to build $6.5B headquarters at Hudson Yards
October 20, 2014 02:53PM

Mayor Bill de Blasio has flatly rejected JPMorgan Chase’s request for $1 billion in tax breaks to build its headquarters in New York.

The bank is currently in talks with city and state officials about potentially building two towers at Hudson Yards to house 16,000 employees. The project would cost $6.5 billion.

De Blasio, however, called the proposal a “nonstarter.”

He added that “there was a discussion put forward to the city of a substantial amount of subsidy, and as Deputy Mayor [Alicia] Glen made very clear publicly, that’s not on the table from the city point of view,” Mr. de Blasio said at a press conference in Broad Channel, Queens, on the city’s Sandy relief program. “But we value J.P. Morgan as a major employer for this city, for sure, and we certainly look forward to their long-term presence here as they’re looking to switch locations, and if we can find appropriate ways to be helpful, we certainly will.”

If not on the far West Side of Manhattan, Chase may relocate to New Jersey or Delaware, according to Crain’s. De Blasio said he is not against tax incentives in general, but that he is against the $1 billion figure. [Crain’s] — Claire Moses

  • Niv21

    to flat out deny it is a big mistake by D B administration. Those 2 sites owned already owned by Related Cos is already getting $600 m tax break, therefore Chase is asking for $400m more to reach the $1B figure it is requesting. Hopefully both parties can agree somewhere in the middle to get this going. Chase does mean a lot to the city and the city stands to make a pretty good income from Chase for developmental rights and other payments that would be required.

    • realposter

      he’s a populist – what did you expect him to do? what does he understand about business?

  • noclist

    They’ll go to Jersey City and get their tax breaks. They can take the ferry over and have lunch at the Hudson Yards and the city will be scratching it’s collective heads wondering where the tax revenues went.

  • Crawdad

    If only a Bill DeBlasio mayoral term were a “nonstarter”, then we wouldn’t be in this mess. At least he’s a guaranteed one-termer.

  • jake

    Tax breaks…. stop giving all this out and just pay the damn taxes!

  • jimmy

    Theyre not going anywhere. Think about recruiting. No hotshot, Ivy leaguers w/econ degrees want to work in Delaware, NJ or CT. Ask UBS how it worked out in Stamford.