Contact: Colleen Roche (212) 788-2958 ,Deirdra L. Picou (212) 788-2971 or Bernadette O'Leary(212) 312-3523 (EDC)
Mayor Rudolph W. Giuliani announced today that Banco Popular de Puerto Rico, the largest Hispanic Bank in the United States has agreed to keep its executive offices in Manhattan for the next 20 years maintaining 309 jobs here and creating a projected 277 new jobs during this 20 year period.
Banco Popular had considered relocating its 224 back office employees to Weehawken, New Jersey. Instead, the company has agreed to keep those jobs in Manhattan consolidating several of its offices at 120 Broadway in Lower Manhattan. In addition, Banco Popular has agreed to retain 85 positions at its executive offices at 7 West 51st Street.
Over the term of the agreement, negotiated through the New York City Economic Development Corporation (EDC) and approved by the City's Industrial Development Agency (IDA), Banco Popular will receive a maximum of approximately $953,000 in sales tax exemptions as well as energy discounts if it is able to maintain its current 309 jobs in New York City. The City's portion of these benefits is $216,000. The City is also offering a maximum of an additional $202,000 in real estate tax benefits if Banco Popular is able to create the 277 projected new jobs. Of the City's total contribution to Banco Popular's benefits package, 48 percent is contingent upon growth by the company.
"Banco Popular has been a vital part of New York City's banking community -- particularly for Hispanic New Yorkers -- since 1961, when it opened its first branch in the South Bronx," said Mayor Giuliani. "My Administration was committed to retaining Banco Popular in New York City, not only because of the company's contribution to the City's position as the banking capital of the world, but because of the dedication it has shown to City residents with its 29 branches that employ hundreds of New Yorkers."
"Mayor Giuliani's commitment to business, as well as his Administration's dedication to the revitalization of the City's economy, encouraged us not only to remain in New York City, but also to expand our operations for the future," said Orlando Berges, Banco Popular Senior Vice President, New York District.
"With this agreement, Banco Popular has demonstrated its commitment to New York City's financial community -- a community that has long been a pillar of the City's economy," said Fran Reiter, Deputy Mayor for Economic Development and Planning. "As one of the most diversely populated cities in the United States, as well as the City with one of the largest banking communities, New York City is the logical place for companies like Banco Popular. This agreement shows that the Giuliani Administration is succeeding in getting this message out to the business community."
"With today's announcement, Banco Popular helps further bolster Lower Manhattan, which continues to attract businesses as a result of Mayor Giuliani's commitment to revitalize the City's financial district," EDC President and IDA Chairman Charles Millard said. "We are excited at the prospect of Banco Popular continuing to grow in New York City, and we look forward to a long and prosperous future with this very important financial institution."
Banco Popular will consolidate several of its Manhattan offices at 120 Broadway, including its recently expired leases at 650 Avenue of the Americas and 135 West 50th Street. The Bank also has offices at 75 Varick Street and 629 West 54th Street, which the company will eventually relocate to 120 Broadway.
Including this agreement, the Giuliani Administration has now retained 24 major companies, representing 55,791 jobs retained and a projected 19,631 new jobs over the next 20 years through its corporate retention program. The total tax revenue generated by these companies to the City is $809.12 million a year for the next 10 to 20 years.
In the event the company does not maintain the specified job level, the agreement calls for the repayment 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 above and beyond those it has agreed to retain.
Banco Popular de Puerto Rico, its employees and suppliers generate economic activity, which results in more than $2.14 million annually in total City tax revenues. As a result, the payback period to the City is about 2.3 months.
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.
IDA is a public benefit corporation contractually administered by EDC and established to encourage business development and expansion.