On November 14, 2006, the New York City Industrial Development Agency approved a deal to let Metropolitan Life escape a $27 million subsidy agreement made with the city in 2001 to relocate 1,750 jobs in Long Island City, Queens. Under the terms of the clawback provision (money back guarantee), the city was eligible to collect $24 million from MetLife for reneging on the deal. Instead, the city chose to fine the company $5 million and obtain a promise from MetLife to retain at least 1,750 workers in New York City until 2026 (rather than 2021 as currently stipulated), and occupy at least 30% of the Queens office building until 2014.
In 2008, however, the IDA did begin to recapture benefits from MetLife. As of the agency's annual report from January 2011, about $17.9 has been recaptured, which is more than the company had received to date.
Read a statement from Good Jobs New York in response to this corporate subsidy news.
This came on the heels of reports that Merrill Lynch, another subsidy recipient, may explore the option of leaving New York City when its current lease expires at the World Financial Center. In this case, Mayor Bloomberg took a hard line stance and stated that he has "always been opposed to subsidies to keep people in New York" and "would not expect Merrill Lynch to ask for any subsidy, nor would I expect the city to give them one."
Both Merrill Lynch and MetLife failed to meet their job commitments in fiscal year 2005 associated with the large subsidy packages they received. As a result, each has had their future benefits reduced.
GJNY takes a close look at the proposed subsidy package--worth nearly $130 million--for Fresh Direct to relocate to the South Bronx. In early 2012, Fresh Direct started a bidding war between New York City and New Jersey officials when it threatened to leave its current home in Long Island City, Queens. Learn more about the subsidies, job promises and the efforts of residents to block the on-line grocery retailer's move to their waterfront.
Good Jobs New York's analysis and recommendations regarding federal state and local resources used in the post-Hurricane Sandy rebuilding.
Our database contains information on thousands of companies that received economic development subsidies in New York City.
Learn about major corporate giveaways to the financial industry, sports facilities and retail developments in New York City.