MAYOR GIULIANI ANNOUNCES RECRUITMENT OF STATE-OF-THE-ART RADIO SERVICE TO NEW YORK CITY FROM WASHINGTON D.C.
-- Company Will Broadcast Directly From Satellites To Motorists --
Mayor Rudolph W. Giuliani announced today an agreement with CD Radio Inc., a radio broadcasting company that is constructing a satellite-to-car national radio broadcasting system, to relocate to New York City from Washington D.C.
"Historically, New York City has always been the place where people come to launch a new idea or product, and as the number one radio market in the country, New York is the perfect location for CD Radio to begin this type of venture," said Mayor Giuliani. "With less crime, lower taxes, and a more business-friendly environment, more companies are looking to come here than ever before. We are very excited that this cutting-edge radio service realizes the many advantages of doing business in New York City and has decided to relocate here."
CD Radio was eager to relocate to the New York area and had considered locations in both New York City and New Jersey. As a result of negotiations with the City, the company will lease approximately 100,000 square feet at 1221 Avenue of the Americas in Manhattan. Although CD Radio currently has 13 employees who will relocate from Washington, D.C., the move will enable the company to expand to 43 employees by the end of this year. In addition, the company projects 291 additional jobs over the next 15 years.
In 1997, CD Radio was one of two successful bidders for a license issued by the FCC to build, launch and operate a national broadcasting system. The company is currently constructing two satellites that it plans to launch into orbit to broadcast its radio service throughout the country. Its new headquarters in New York City will feature a state-of-the-art, high-tech studio that will house 50 different radio stations ranging from Alternative Rock to Jazz, as well as special interest programming. Each station will be broadcast to motorists throughout the United States. The first satellite is scheduled for launch in August of next year. The company has raised almost $500 million to date.
"The commitment of CD Radio to relocate here reaffirms New York City's place at the forefront of the media industry," said Deputy Mayor for Economic Development, Planning and Administration Randy Levine. "Being located here allows for access to top industry talent and resources."
Over the term of the agreement, which was approved today by the City's Industrial Development Agency (IDA), CD Radio will receive a maximum of approximately $939,000 in City and State sales tax and energy benefits if it brings 43 new jobs to New York City. This benefits package will go toward renovations at the new location and the purchase of equipment. As part of the agreement, the City and State will grant $1.12 million in benefits if CD Radio is able to create 291 additional new jobs over the next 15 years. The City's portion of this benefits package is $.75 million. CD Radio will generate $10.8 million in direct and indirect tax revenue to the City annually. The payback period to the City for the agreement is less than a month.
"Under Mayor Giuliani, New York City has become a hotbed of emerging technology," said New York City Economic Development Corporation (EDC) President and IDA Chairman Charles Millard. "More and more companies are realizing that to prepare for success in the future, it is necessary to establish a presence in New York City."
"We are very pleased to be building our national broadcast studio in New York," said David Margolese, CD Radio's Chairman and Chief Executive. "There is no more fitting location for our broadcast facilities, which will be among the world's most sophisticated, than the exceptionally talent-rich environment of New York City."
Since its inception in 1996, EDC's Business Recruitment Division has successfully attracted 18 new companies to New York City, creating 474 new jobs and bringing more than $14.2 million in annual tax revenue to the City.
In the event the company does not reach or 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 the specified number of additional jobs.
CD Radio holds one of two FCC national satellite radio broadcast licenses. The company is building a satellite-to-car 50-channel radio system for the broadcast of music and other programming to motorists throughout the United States.
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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