JPMorgan Chase couldn’t reach HQ deal with Related, either

Lack of subsidies wasn't only reason bank nixed plan to move to Hudson Yards, report says

New York /
Oct.October 30, 2014 08:30 AM

JPMorgan Chase abandoned its plans to build $6.5 billion headquarters in Hudson Yards because the city and the state were unwilling to provide the subsidies the banking giant requested. But apparently, there was a second reason the plan fell through: the bank couldn’t come to an agreement with the complex’s developer, Related Companies.

The bank was looking to build two towers — at Related’s 50 and 55 Hudson Yards — on Manhattan’s Far West Side. That plan depended on JPMorgan Chase reaching a deal with Related to acquire the parcels. Reportedly, the bank was unable to reach an agreement with the developer.

Meanwhile, Mayor Bill de Blasio defended the city’s decision not to grant tax breaks and subsidies to the bank. “We took an approach that was focused on respecting the role our employers play in this city but moving away from the historic focus on government subsidies, which I think has been proven to be often ineffective, Mayor Bill de Blasio said, according to Capital New York. “We try to be helpful in other ways.”

Chase Chairman Jamie Dimon told de Blasio and Governor Andrew Cuomo on Tuesday that the company would stay put on the East Side.

De Blasio and Deputy Mayor Alicia Glen had already opposed the proposed subsidy package.

In New Jersey, the bank has been able to secure $22.5 million in annual tax breaks from the state. JPMorgan is building out a regional technology and operations hub in Jersey City. [Capital NY] — Claire Moses 


Related Articles

arrow_forward_ios
Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)
Owners of some residential properties can’t hide behind LLCs anymore
Owners of some residential properties can’t hide behind LLCs anymore
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)
Related is the latest developer to target the Rockaways
Related is the latest developer to target the Rockaways
Governor Andrew Cuomo and 538 Johnson Avenue in Brooklyn (Credit: Google Maps and Getty Images)
Landlords take another hit: Cuomo signs expanded Loft Law
Landlords take another hit: Cuomo signs expanded Loft Law
City Council greenlights Gowanus, Blood Center rezonings
City Council greenlights Gowanus, Blood Center rezonings
City Council greenlights Gowanus, Blood Center rezonings
Mayor Bill de Blasio, Hotel Trades Council's Rich Maroko and Council member Rafael Salamanca (Getty, iStock)
Hotel development blocker now one step from de Blasio’s desk
Hotel development blocker now one step from de Blasio’s desk
New buildings may have to go electric as gas ban gains momentum
New buildings may have to go electric as gas ban gains momentum
New buildings may have to go electric as gas ban gains momentum
Governor Kathy Hochul (Getty)
Hochul downsizes Cuomo’s Penn Station plan
Hochul downsizes Cuomo’s Penn Station plan
Bet against retail costs investor big-time
Bet against retail costs investor big-time
Bet against retail costs investor big-time
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...