MAYOR GIULIANI ANNOUNCES AGREEMENT WITH THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA TO REMAIN IN NEW YORK CITY
-- 1,475 Jobs Will Remain In Manhattan --
Mayor Rudolph W. Giuliani announced today that The Guardian Life Insurance Company of America, one of the nation's premier providers of personal insurance and financial services, will remain in Manhattan and keep 1,475 jobs here.
The Guardian had considered relocating its headquarters from 201 Park Avenue South to the former PepsiCo Building in Somers, New York. Instead, as a result of an agreement with the City, the company will consolidate its offices and lease 550,000 square feet at 7 Hanover Square in Lower Manhattan.
"We are continuing to create an environment in New York City that encourages business success," said Mayor Giuliani. "With less crime, lower taxes and a more business-friendly atmosphere in New York City, The Guardian Life Insurance and other companies are planning their futures here. In fact, five of the nation's ten largest insurance companies are located in our City, and we are pleased that The Guardian will remain part of our very strong insurance industry. Retaining this company and its 1,475 jobs further solidifies New York City's position as the place where the world does business."
Randy Levine, Deputy Mayor of Economic Development Planning and Administration, said, "The commitment of The Guardian is another example that Mayor Giuliani's efforts to revitalize Downtown Manhattan are working. From financial services to insurance to new media, Lower Manhattan has become a prime location for a wide range of businesses."
Over the term of the agreement, which was approved by the City's Industrial Development Agency (IDA) this morning (Tuesday, January 13), The Guardian will receive a maximum of approximately $7.8 million in City and State sales tax benefits if it retains 1,475 jobs in New York City. This benefits package will help The Guardian make improvements at its new location. As part of the agreement, the City and State will grant $3.5 million in benefits if The Guardian is able to create 1,269 new jobs over the next 20 years. The City's portion of this benefit package is $6.65 million. Of the City's total contribution, 31 percent is linked to job growth. The Guardian generates $29.1 million in direct and indirect annual City tax revenue. The payback period to the City for the agreement is less than 3 months.
"Under Mayor Giuliani's leadership, the City's business environment is the strongest it has been in years. Rather than looking to leave New York City, a record number of companies like The Guardian are choosing to stay and thrive here," said EDC President and IDA Chairman Charles Millard.
Including this agreement, the Giuliani Administration has now retained 37 major companies through its business retention program, representing 81,924 jobs retained and a projected 44,961 new jobs over the next 20 to 25 years.
In the event the company does not maintain the specified job level, the agreement calls for the repayment or reduction of some or all of the benefits taken, as well as penalties, and/or a reduction or elimination of any unused benefits. In addition, the company cannot take advantage of any benefits tied to job growth until it certifies that it has created additional jobs above and beyond those it has agreed to retain.
The Guardian was founded in 1860 and is a premier provider of personal insurance and financial services. The company specializes in investment and group life insurance, variable annuities and mutual funds. It is a mutual company which is owned by its policy owners.
EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, EDC helps develop businesses and create jobs throughout the five boroughs.
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