Bank of America

One of the world's most profitable financial institutions, Bank of America has received two subsidy packages. In 2004 it received $42 million in Liberty Bonds and other subsidies from the city and state and a special lease arrangement with the Empire State Development Corporation worth up to $40 million for a Midtown Manhattan office tower that was developed by the Durst Organization and anchored by the bank.  Details about the Bank of America's 2004 subsidy and its terminated 1993 deal with the Industrial Development Agency is in our Database of Deals.

Major developments in the 2004 deal

• December 2003 - Durst Organization and Bank of America secured a settlement with remaining property owners at One Bryant Park, clearing the way for a proposed new office tower to be financed with $650 million in Liberty Bonds.
• February 2004 - NYC Industrial Development Agency announces strengthened money-back guarantees if Bank of America fails to grow jobs over 25-year life of deal. Read coverage of public hearing in the Daily News.  Read testimony from the public hearing on $42 million in city tax breaks for Bank of America from State Senator Liz Krueger, and Good Jobs New York. The subsidy was approved by the IDA board on February 10, 2004.
• February 2004 - NYC Industrial Development Agency approves $42 million in discretionary tax breaks for the Bank of America: $32.5 million in growth benefits available on a per-employee basis; $6.0 million in sales and use tax exemptions; and up to $3.5 million in Con Ed's Business Incentive Rate. These benefits can be used both at 1 Bryant Park and at existing offices at 100 West 33rd Street, 335 Madison Avenue, 9 West 57th Street, and 40 West 57th Street. They are in addition to the $650 million in Liberty Bond financing approved earlier for 1 Bryant Park.
• August 2005 - NYC Industrial Development Agency holds a hearing on Bank of America's proposed transfer of its tax benefits from 1 Bryant Park to existing office space located at 50 Rockefeller Center.  Read GJNY's testimony.

November 2003 State Subsidies: up to $40.6 million

Benefits to be conveyed through the ground lease held by the Empire State Development Corporation (ESDC) include Payment In Lieu Of Taxes (PILOT) savings of up to $26.2 million on real property taxes and a $14.4 million waiver of mortgage recording taxes associated with the Liberty Bond financing.

The ESDC held a public hearing on the condemnation of property at One Bryant Park, general project plan, draft environmental impact statement, and ground lease terms on November 20, 2003.

Read testimony from State Senator Liz Krueger, (then State Assemblymember) Scott M. Stringer, Good Jobs New York.

September 2003 City Subsidies: up to $42 million

Subsidies proposed by the Industrial Development Agency for BofA.

Testimony from:

• State Assemblymember Scott M. Stringer
• City Council Speaker Gifford Miller
• Good Jobs New York
• New York Industrial Retention Network
• The Manufacturing Woodworkers Association of Greater New York

The subsidies were approved and include:  $32.5 million in growth benefits is available to be earned on a per-employee basis. Additional benefits include $6.0 million in sales and use tax exemptions and up to $3.5 million in Con Ed's Business Incentive Rate. These benefits can be used both at 1 Bryant Park and at existing offices at 100 West 33rd Street, 335 Madison Avenue, 9 West 57th Street, and 40 West 57th Street. 

$650 million in Liberty Bond financing for the project received preliminary approval from the NYC Industrial Development Agency. Read news accounts in The New York Times and The New York Post.