FOR IMMEDIATE RELEASE
June 2, 2005
MAYOR BLOOMBERG AND GOVERNOR PATAKI ANNOUNCE MORGAN STANLEY TO MOVE 2,300 JOBS DOWNTOWN
Signed Leases for 648,000 Square Feet of Space at One New York Plaza and Announced Plans to Add Nearly 600 More Jobs Over Next Five Years
Mayor Michael R. Bloomberg and Governor George E. Pataki today announced that Morgan Stanley, one of the world's leading financial services companies, has decided to move 2,300 employees downtown, consolidating at least 2,700 employees in Lower Manhattan. The company signed leases for about 648,000 square feet of space at One New York Plaza and accepted a federally-funded Job Creation and Retention Program (JCRP) grant worth up to $16 million from the City and State that commits the company to the employee consolidation and to expanding its workforce by adding nearly 600 jobs over the next five years.
"Morgan Stanley's decision to expand its workforce in New York City and bring at least 2,300 jobs downtown is a powerful demonstration of the financial sector's confidence in the revitalization of Lower Manhattan," said Mayor Bloomberg. "While we have been successful in diversifying Lower Manhattan's economy by attracting companies from multiple industries, we should never forget that Lower Manhattan is and always will be the financial center of the world. Morgan Stanley has been a valuable contributor to New York City's economy for many years and I am proud the company will once again play an integral role in the fabric of Lower Manhattan. I thank the people of Morgan Stanley for their continuing support of the incredible recovery we're seeing downtown."
"As one New York City's largest employers, Morgan Stanley's commitment to downtown is yet another boost to the revitalization of Lower Manhattan," said Governor Pataki. "The State and City have been working together to encourage companies like Morgan Stanley to make downtown their home. We have succeeded in keeping or creating thousands and thousands of jobs in Lower Manhattan thanks to the commitment of both large and small firms to our rebuilding efforts. I want to thank Morgan Stanley for consolidating 2,700 members of their workforce in Lower Manhattan and for their confidence in the future of downtown."
Morgan Stanley, founded in New York City in 1935, will receive an $11 million JCRP grant to move 2,300 jobs downtown, which it will combine with 400 employees it already has in Lower Manhattan. The company can earn another $5 million in grant money for increasing its workforce by 578 over the next five years. As part of this transaction, Morgan Stanley commits to retain its New York workforce of more than 9,700 employees at locations throughout the City. The company is also eligible to receive energy discounts through Con Edison's Business Incentive Rate program.
"The development of our One New York Plaza location reflects our continued commitment to New York City and to the downtown area," said Philip J. Purcell, Morgan Stanley Chairman and CEO. "The move will effectively meet both the short- and long-term occupancy needs of our expanding New York workforce."
Since September 11, 2001, the NYC Economic Development Corporation (EDC) and the Empire State Development Corporation (ESDC) have jointly approved more than $290 million in JCRP grants to 76 companies to support Lower Manhattan's recovery. The program, which is federally-funded, has helped retain and create more than 83,000 jobs in New York City. Of this total, 67,400 jobs have been retained and 6,800 jobs will be created in Lower Manhattan, with an additional 9,000 New York City jobs retained outside Lower Manhattan. The program is designed to stabilize the job base in Lower Manhattan, restore the vibrancy of the downtown community and diversify its economy, encourage the creation of new jobs and attract new businesses. The program targets large companies because they account for more than half of all the private sector jobs in Lower Manhattan, which in turn support thousands of smaller-sized businesses.
While Lower Manhattan remains the financial capital of the world, companies from a variety of industries such as health care, media, telecommunications, legal and publishing are making long-term commitments downtown. Together with the other World Trade Center grant programs, JCRP has proven a powerful tool in securing companies from a range of sectors. These companies include the Health Insurance Plan of Greater New York (HIP), which recently opened new corporate headquarters at 55 Water Street; Media Planning Group, a strategic communications company that signed a lease at 195 Broadway; and the law firm Cadwalader, Wickersham & Taft, which signed a 450,000-square-foot lease at the World Financial Center last year.
"By working closely with our partners at the state and federal levels, we have been able to attract and retain more than 74,000 jobs and keep critical businesses in Lower Manhattan," said EDC President Andrew M. Alper. "I congratulate Morgan Stanley on its decision to return jobs downtown, which will provide a major boost to the area's economy."
"Morgan Stanley's decision to consolidate and grow its workforce downtown shows a strong commitment to the rebuilding and revitalization of Lower Manhattan, the nation's third largest central business district," said ESDC Chairman Charles A. Gargano. "For the past three and a half years, we have worked in partnership with the city to retain and bring new jobs to downtown as part of our responsibility to restore vibrancy to the community. We are making an investment in the future of our state and our city."
Edward Skyler/Jennifer Falk (212) 788-2958
Lynn Rasic (Governor) (212) 681-4640
Michael Sherman (EDC)
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