JP Morgan will not be building a $US6.5 billion campus on the west side of Manhattan, reports Charles Bagli of the NY Times.
It was going to be a thing of beauty. Two high rise towers at Hudson Yards over looking the river, accelerating the transformation of 10th Avenue from a wasteland of warehouses to another part of the city’s pulse.
There were two problems with the deal.
Firstly, Mayor Bill de Blasio said that the $US1 billion package of tax breaks and incentives JP Morgan asked for was a “non-starter.” The bank, in exchange, would keep 16,000 people working in the city.
“There was a discussion put forward to the city of a substantial amount of subsidy and, as deputy mayor (Alicia) Glen made very clear publicly, that’s not on the table from the city’s point of view,” de Blasio said last week.
So there was that.
Secondly, and perhaps more importantly, was the deal for the land JP Morgan’s headquarters would occupy. The two parcels in question were owned by Related Companies.
But (from the NYT)…
Ultimately, Chase was unable to strike a deal with Related for the two parcels, known as 50 and 55 Hudson Yards. Related set an Oct. 15 deadline during weeks of negotiations. Rather than wait, Related struck a deal to sell a major stake in 55 Hudson Yards to a Japanese company.
Related suggested that the bank build one tower and occupy half of a second skyscraper that Related is building nearby for Time Warner.
And that would not do for JP Morgan. So the bank will stay where it is for now.