Bernadette O'Leary 212-312-3523 (EDC)
MAYOR GIULIANI ANNOUNCES AGREEMENT FOR ZIFF-DAVIS TO REMAIN IN CITY; BENEFITS TIED EXCLUSIVELY TO JOB GROWTH
-- 738 Jobs Retained, 1,332 New Jobs Projected --
Mayor Rudolph W. Giuliani announced today an agreement with Ziff-Davis Inc., technology's only integrated media and marketing company, to remain in Manhattan for the next 22 years. The agreement will keep 738 jobs in the City and create an estimated 1,332 new jobs over the next 22 years. The City will provide sales tax benefits to Ziff-Davis that are entirely dependent on the company's growth.
This is the third exclusively "growth-linked" agreement implemented under Mayor Giuliani which means the sales tax benefits will not be provided unless the company achieves specific employment targets.
"The climate for business in New York City is better than ever, and keeping important corporate players like Ziff-Davis in New York City is a testament to this fact," said Mayor Giuliani. "This agreement also reinforces a precedent we set with our first all-growth agreement -- that we will encourage Ziff-Davis to expand in the City through sales tax benefits which take effect only if the company adds jobs. By retaining Ziff-Davis' strong presence in New York City, we are strengthening the City's position as the international media capital of the world." Ziff-Davis, which publishes such titles as PC Magazine, Computer Shopper, and Yahoo! Internet Life, is primarily located in New York City, San Francisco and Boston. As part of the agreement, the company will lease 400,000 square feet at 63 Madison Avenue, relocating from its 300,000-square-foot location at One Park Avenue. The company had considered adding space and jobs in San Francisco or Boston rather than New York City. Instead, Ziff-Davis will expand its New York City presence.
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), Ziff-Davis will receive a maximum of approximately $4.3 million in sales tax exemptions. The City's portion of these benefits is $2.1 million, 100 percent of which is contingent upon growth by the company.
"At Ziff-Davis we believe in technology. We believe technology will create jobs, advance the educational system and transform business. We are delighted to work with Mayor Giuliani to promote this belief and grow in New York City. Without this agreement, we would have added jobs elsewhere. Instead, we will enhance our presence in New York City, the capital of the world," said Ziff-Davis Chief Financial Officer Timothy C. O'Brien.
EDC President and IDA Chairman Charles Millard said, "As a multi-media publishing company, Ziff-Davis brings together traditional publishing with tomorrow's high-tech concepts. New York City is an international publishing center and the home of Silicon Alley, so it is the ideal location for a company like Ziff-Davis."
Including this agreement, the Giuliani Administration has now retained 36 major companies, representing 80,455 jobs retained and an estimated 43,692 new jobs over the next 23 years. The total tax revenue generated by these companies to the City is $1.39 billion a year.
In the event a 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 the elimination of any unused benefits.
Ziff-Davis generates $11.66 million annually in total City tax revenues. As a result, the payback period to the City is 2.2 months.
Ziff-Davis, a Softbank company, employs more than 3,700 employees worldwide. Ziff-Davis delivers content about computing and the Internet through an integrated system of print, events, Internet, television, education and research. This content attracts the largest audience of business technology users and techno-savvy consumers in the United States and is distributed in more than 100 other countries around the world.
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.
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