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Metropolitan Life Insurance Subsidy News

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.

Read a statement from Good Jobs New York in response to this recent 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.  See a breakdown of the subsidies received, subsidies used, jobs created, and subsidy reduction amounts for Merrill Lynch and MetLife.