Bernadette O'Leary (212) 312-3523(EDC)
MAYOR GIULIANI ANNOUNCES AGREEMENT WITH NEW YORK NATIONAL BANK TO RELOCATE HEADQUARTERS IN SOUTH BRONX AND REMAIN IN NYC
37 Jobs Retained -- 73 New Jobs Created
Mayor Rudolph W. Giuliani today announced an agreement with New York National Bank, the only minority-owned commercial bank chartered in the State of New York, to relocate its corporate headquarters and open a branch in the Third Avenue Hub section of the South Bronx. The agreement also ensures that the bank will remain in the City for the next 20 years. New York National Bank had considered moving its headquarters to Westchester County.
"This agreement ensures that New York National Bank will continue to serve the City for another 20 years," said Mayor Giuliani. "New York National Bank has been successfully meeting the banking needs of inner-city residents, businesses and community-based organizations for the past 15 years. The bank's inner-city branches play an important role in spurring economic activity in these neighborhoods. Its new headquarters will be located in a revitalized and prime location in the Bronx -- the Third Avenue Hub."
New York National Bank will relocate its headquarters from 960 Southern Boulevard to 369 East 149th Street, in the South Bronx. The bank's anticipated expansion prompted a search for more space. New York National Bank will move its 37 corporate employees to the new location. In addition, the bank will open a new branch in the East 149th Street building, replacing a Chase Manhattan Bank branch that closed in March. The bank estimates the creation of 73 new jobs over the 20-year agreement. The New York National Bank branch on Southern Boulevard will remain open.
New York National Bank is a privately held bank with 67 employees including personnel at two Bronx and two Upper Manhattan branches. The bank was founded in 1982 as a collaboration between Hispanic and African-American bankers and focuses on small business, low-income housing and commercial development within the South Bronx, Harlem, East Harlem and Washington Heights.
"This agreement demonstrates Mayor Giuliani's commitment to small and medium-sized companies throughout the City," said EDC President and IDA Chairman Charles Millard. "As a result, New York National Bank will create more jobs and help stimulate the economy in the South Bronx. The City wishes New York National Bank continued success in offering Bronx and upper Manhattan residents and businesses vital commercial banking services."
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), New York National Bank will receive a maximum of approximately $448,000 in sales tax exemptions, as well as $75,000 in energy discounts, if it is able to maintain its current headquarters staff of 37 in New York City. The City's portion of these benefits is $217,200. The agreement also offers a maximum of an additional $195,000 in sales tax exemptions if New York National Bank is able to create the 73 projected new jobs. Of the City's total contribution to National Bank's benefits package, 37 percent is contingent upon growth by the company.
New York National Bank will invest approximately $1.1 million in capital improvements for the new headquarters. The bank will occupy 10,000 square feet of the 30,000-square-foot building later this year. As the company expands, it will use the entire building. IDA assistance will help defray the cost of purchasing and equipping the space on East 149th Street.
"After completing 15 successful years in business with our headquarters in the Bronx, we are pleased that we have identified a site that will ensure our ability to keep our headquarters and back office personnel here in the South Bronx," said Serafin Mariel, President and Chief Executive Officer of New York National Bank. "The City's Economic Development Corporation has been instrumental in making this possible.
" Including this agreement, the Giuliani Administration has now retained 34 major companies, through its business retention program, representing 77,917 jobs retained and a projected 40,012 new jobs over the next 10 to 50 years. The total tax revenue generated by these companies to the City is $ 1.3 billion 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/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.
New York National Bank generates $430,000 annually in total City tax revenues. As a result, the payback period to the City is just over six months.
As a preferred small business lender, New York National Bank makes low-cost interest loans available to start-up companies in the area it serves. The bank also has helped not-for-profit organizations such as Southeast Bronx Corporation and Banana Kelly finance housing developments.
EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, it helps develop businesses and create jobs throughout the five boroughs.
Contact Us | FAQs | Privacy Statement | Site Map