JPMorgan Is Planning To Build Massive New $6.5 Billion Headquarters In NYC

JPMorgan Chase plans to build two towers in Hudson Yards that will cost the bank $US6.5 billion.

The New York Times’ Charles Bagli reports that in June the bank proposed to build a 62-story tower and a 40-story tower that would occupy as much space as two Empire State Buildings.

It is negotiating a massive incentives package with the city for its new headquarters, and at one point sought as much as $US1 billion in concessions.

The list of concessions included lower sales tax on construction materials, job-training grants, and an underground passageway between both towers that would alter the design of a new subway station.

But for the city, approving the new construction could contradict Mayor Bill de Blasio’s stance against corporate subsidies, while rejecting it may hurt his administration’s relationship with one of the city’s largest companies. The bank has said the benefits of the new buildings outweigh the concessions it wants.

The bank has sought fewer concessions in the last few days.

“There’s no way that the city would entertain a demand for a billion dollars in additional incentives at Hudson Yards,” Alicia Glen, the deputy mayor for economic development, told The Times.

About 16,000 JPMorgan employees would work in the new headquarters.

The buildings would be located on 33rd street between 10th and 11th avenue. The area is an industrial hub with many warehouses, and has transformed in the eight years since former mayor Mike Bloomberg rezoned it for high-rise developments.

Last year, the bank sold Chase Manhattan Plaza to a Chinese group for $US725 million.

The company’s leaked third quarter earnings showed that it posted net income of $US5.6 billion, or $US1.36 per share, missing the expectation of $US1.38 per share.

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