JP Morgan Chase, the famous financial institution, is reportedly in talks to build a massive office building at the Hudson Yards Development in New York City.
JP Morgan wants to build two towers at the upcoming project on the far west side of Manhattan and has reportedly approached the city for a considerable tax break, according to several outlets that are quoting people familiar with the deal.
Sources told Bloomberg that the buildings would together span an area of 4 million square feet and JP Morgan is pushing for at least $1 billion in tax exemptions.
In return for the property tax exemptions, JP Morgan is promising 16,000 new jobs in the city. Since the financial downturn, several big banks have moved jobs from the prime Manhattan area to other places where taxes and real estate costs were lower. JP Morgan said that even with the tax incentives, the buildings would generate a good amount of revenue, according to The Wall Street Journal.
Talks between the bank and the government have been picking up momentum. Though the administration hasn't agreed to the billion-dollar tax exemption, they are reportedly willing to make counteroffers and accommodate some demands.
"There's no way that the city would entertain a demand for a billion dollars in additional incentives at Hudson Yards. We have always been willing to engage with them in a dialogue about how we could be helpful in making a move more feasible," Alicia Glen, deputy mayor for economic development, was quoted by The New York Times.
Approved or unapproved, JP Morgan Chase will have to purchase land from developers Related Companies and have to come to a consensus on which developer will build the structures. Related is apparently "eager" to strike a deal with the bank but everything depends on the government approval.
"We don't have a deal yet. I don't know if we can make one. A lot depends upon the city and the state," Stephen M. Ross, chairman of Related told the Times.
Earlier in August, it was reported that JP Morgan was exploring options as to where it could shift its head office from NYC. Over the years, it has moved several back-end employees to Delaware, New Jersey and Florida to cut down on expenses and the latest plan is just another step towards minimizing costs.
JP Morgan currently takes up 1.3 million square feet of space at 270 Park Ave. - a 707-foot tall glass building spanning 52 floors. The building was recently renovated and has a LEED platinum certification.
