Goldman will consolidate it's existing downtown buildings into a single 9,000-person office
Downtown's largest employer is consolidating its headquarters under one Battery Park City roof.
Goldman Sachs, the investment bank founded on Pine Street in 1869, announced plans this week to erect a 43-story office tower at West and Vesey Streets. The plan follows negotiations between the bank, state, and city to secure the location and finance the $2 billion building through Liberty Bonds and other incentives.
Goldman Sach's commitment assures that its 9,000 employees and the bulk of its trading operations will stay in Lower Manhattan through 2028. It also signifies the bank's investment in the downtown recovery, with approximately 4,000 new jobs expected to be added by 2019.
"Goldman Sachs' plans to locate across from the World Trade Center site and expectation of creating thousands of jobs in the next decade sends a powerful message that not only is the rebuilding on track, but that Lower Manhattan's destiny as a world-class central business district will be achieved," Governor George E. Pataki said. "Goldman Sachs' over $2 billion investment is a critical element of the over $9.9 billion Lower Manhattan construction boom that will take place within the next six months and within a three-block radius of the World Trade Center site. I congratulate Goldman Sachs on its decision to continue to make Lower Manhattan its home."
"Goldman Sachs' decision to build their new headquarters in Battery Park City means keeping and creating thousands of permanent and construction jobs in Lower Manhattan," said Mayor Michael Bloomberg in Tuesday's announcement. "This project is a shot in the arm for the development of downtown and means billions of dollars in tax revenue for New York City and State. "I am particularly pleased that the city, state, and Goldman Sachs were able to produce an agreement that maintains Lower Manhattan as the financial capital of the world and generates so many jobs and so much revenue for New York."
"I am certain that this announcement by Goldman Sachs will provide a much-needed boost to the overall rebuilding efforts of Lower Manhattan," Assembly Speaker Sheldon Silver said. "Not only will it return the thousands of shoppers and diners who have been missing from the Lower Manhattan economy for almost four years, I am confident that today's announcement will pave the way for future agreements that will ultimately lead to a successful rebuilding of our remarkable community."
The bank's new world headquarters will rise in Battery Park City's last remaining commercial plot, known as Site 26. Designed by Henry N. Cobb of Pei Cobb Freed & Partners, the 740-foot-tall tower will earn Leadership in Energy and Environmental Design (LEED) Gold certification by incorporating "green" building technologies, such as water and energy conservation, and use of recycled materials.
Planned to face the World Trade Center site across West Street, the steel-and-glass building will serve as Goldman Sachs' world headquarters, housing its investment banking, investment management, and trading operations.
"In keeping with Governor Pataki's vision of creating harmony between the built and natural environment, Goldman Sachs will be adding two million square feet of LEED Gold-certified commercial construction to Battery Park City's existing two million square feet of LEED Gold certified residential construction -- making Lower Manhattan the world leader with the highest concentration of sustainable construction per square foot," said Battery Park City Authority Chairman James Gill.
Around the building's ground-level exterior, the bank will develop a landscaped pedestrian area lined with retail spaces. The bank also will redevelop the mid-block pedestrian walkway between the new headquarters and the Embassy Suites Hotel and Regal Cinemas, as well as the connection to Hudson River Park and the West Street bicycle path and walkway.
The new tower will be partly financed with up to $1.65 billion in Liberty Bonds, which were made available by the federal government after September 11, 2001, to spur construction projects downtown. Goldman Sachs has agreed to a $161 million, 64-year lease with Battery Park City Authority for the two-acre plot.
The bank also is eligible for up to $25 million in Job Creation and Retention Program funds, as well as a sales-tax exemption on construction costs, initial fit-out expenses, and equipment purchases.
Meanwhile, the city and state expect Goldman Sachs to generate nearly $8 billion in direct and indirect taxes over the life of the deal. The announcement stated, "The total discretionary incentive package provided to Goldman Sachs is worth $115 million, independent of PILOT payments, in state and city funds over the same period. This is a fraction of the revenue that Goldman Sachs generates in taxes for the city and state in a single year."
As an additional pledge to the neighborhood, Goldman Sachs will contribute $3.5 million to a New York Public Library branch planned for a site at Murray Street and North End Avenue. The bank also is offering $1 million for a community center in a new residential development in Battery Park City.
Work on the new tower is expected to begin by the end of the year, with the first tenants moving in by 2009.