The Real Deal New York

No tax breaks so JPMorgan Chase cans Hudson Yards move

Bank drops plan to build $6.5B headquarters
October 29, 2014 08:00AM

JPMorgan Chase will not build its new headquarters at Hudson Yards.

After the bank proposed the $6.5 billion idea — which would consist of a 40-story and a 62-story skyscraper and would house 16,000 employees — earlier this month, it has now decided to stay put on the East Side, according to the New York Times.

Chase Chairman Jamie Dimon broke the news to Mayor Bill de Blasio and Governor Andrew Cuomo on Tuesday.

The project, however, couldn’t move forward without coming to an agreement with the city and the state over a subsidy package. Chase would have had to buy the parcels — 50 and 55 Hudson Yards on the north side of 33rd Street between 10th and 11th avenues — from Related Companies. Chase had said that it was looking for $1 billion in tax breaks, something the mayor called a “nonstarter.”

“This is an outcome that validates our approach, and our belief that these deals often come down to factors that have nothing to do with taxpayer subsidies,” Alicia Glen, deputy mayor for economic development, said, according to the newspaper. “We’re glad that JPMorgan has decided to maintain its buildings and its work force right where they are for the foreseeable future.” [NYT] — Claire Moses

  • ralphpetrillo

    Dimon looking foolish. He should be part of the expansion plan and not ask for handouts.

  • Niv21

    If you read the NYT article, it doesn’t say the city and JPMC could not work things out but negotiations had a self imposed deadline because Related had a deal with the Japanese to become a major partner for one of the properties, aka 55 Hudson Yards which according to the article the deal is done. It is more that time ran out and Related had to kill further negotiations to take the other parties offer. I don’t know why the Real Deal left out this pertinent information. Anyway, good news that Chase will remain in the City and would like to add that DeBlasio is for the birds.

  • David Brown

    As Citicorp leases run out ion the East side they will probably reduce space and move functions out of NYC. The city is a high cost location and regulation is driving down return on investment. It is no longer a question of saving 10% moving to Brooklyn but a question of saving 50% moving to Omaha. Yes, there will still be thousands of Citicorp employees in NYC performing high value activities but there will be tens of thousands more outside NYC performing lower value services. I’m not a believer in “corporate welfare” but this is more about Citicorp attempting to offset high costs of remaining in NYC than it is about a specific real estate opportunity.

  • Ronald Edelstein

    JP Morgan, biggest crooks ever. Things happen for a reason. This reason is greed. Not just about this project but because they are sneaky and rip people off. Hope they get the message its not about this project. They should learn how to treat people, not take their clients for granted and of course be ware that a small consumer can foil a big deal.

  • Bullied and Damaged by Rent Re

    Too bad they can’t be persuaded to move to Queens so 7 train commuters can catch a break:

    (use Google browser to get auto translate):