MAYOR ANNOUNCES AGREEMENT WITH
MAJOR INTERNATIONAL INVESTMENT BANK TO REMAIN IN CITY
841 JOBS RETAINED, 870 NEW JOBS PROJECTED; ALL BENEFITS TIED TO GROWTH
Mayor Rudolph W. Giuliani today announced an agreement with ING Barings, a division of ING Group, a major international financial institution specializing in banking and insurance, to remain in Manhattan for the next 15 years. The agreement, which retains the company's U.S. headquarters, keeps 841 jobs here and creates a projected 870 new jobs during this 15-year period, and offers benefits to ING that are entirely dependent on the company's growth. In the first exclusively growth-linked agreement implemented under Mayor Giuliani, the benefits will not be provided unless the company achieves specific employment thresholds.
ING Barings, whose current New York City leases expire in 1999, 2003 and 2005, sought to consolidate cost-effectively in New York City, or to move many office functions outside the City. The company identified space in Stamford, Conn., where it planned to relocate 500 back-office jobs. However, with this agreement, company decision-makers have agreed to keep those jobs, along with an additional 341 positions, in the City. The company is consolidating and relocating its offices, currently at 135 East 57th Street and 667 Madison Avenue, to 55 East 52nd Street.
"In addition to keeping a high-profile financial institution and its 841 jobs in New York City, we are encouraging the company to grow by offering tax benefits that will kick in only as ING increases its work force," said Mayor Giuliani. "We also are strengthening New York City's position as a global financial center by demonstrating that the City is serious about keeping and growing companies in this industry."
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), ING will receive a maximum of approximately $5 million in sales tax exemptions as well as energy discounts according to the company's rate of job growth. The City's portion of these benefits is $1.65 million, 100 percent of which is contingent upon growth by the company.
"We are very pleased to be able to consolidate our two New York locations at Park Avenue Plaza and remain in New York City," said Lane Grijns, chairman of ING Barings for the Americas. "This agreement enables us to continue to operate in one of the world's most important financial centers and to expand our work force by drawing on the City's talented labor pool. These changes, facilitated by the City, will enhance our industry position."
"Under Mayor Giuliani's leadership, we have created another win-win situation for New York City: ING receives incentives to grow by tapping into New York City's talented and highly-educated labor force, and the City retains hundreds of jobs, with prospects for hundreds more new positions for New York City residents," EDC President and IDA Chairman Charles Millard said. "The agreement will eventually mean more than a thousand financial services jobs for New York City, adding to our strength in this sector."
Including this agreement, the Giuliani Administration has now retained 26 major companies through its business retention program representing 57,450 jobs retained in New York City and a projected 20,804 new jobs over the next 10 to 20 years. The total tax revenue generated by these companies to the City is $835.2 million a year.
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 an elimination of any unused benefits.
ING Barings generates $16.3 million annually in total City tax revenues. As a result, the payback period to the City is 1.2 months.
ING Barings is the U.S. office of ING Group, which is headquartered in Amsterdam. From its New York City offices, ING Barings specializes in advising clients and institutional investors on emerging markets, including the Asia Pacific region, Latin America and selected European markets.
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 established to encourage business development and expansion and contractually administered by EDC.
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