Archives of the Mayor's Press Office

Date: Wednesday, March 21, 2001

Release #089-01

Contact: Sunny Mindel/Curt Ritter
  Gregory Miley/Janel Patterson 212-312-3523 (EDC)


Premier North American Investment Bank to Become Anchor Tenant of New Midtown Office Tower; Projects Creation of 2,800 New Jobs

Mayor Rudolph W. Giuliani announced today that CIBC (Canadian Imperial Bank of Commerce) World Markets will remain in New York City and retain its U.S. headquarters here for the next 18 years. Under the terms of the agreement, CIBC World Markets will retain its current 2,712 jobs, and anticipates the possible creation of an additional 2,800 new jobs over the 18--year term of the agreement. CIBC World Markets also plans to consolidate its New York City operations into a 1.2 million--square--foot office tower at 300-310 Madison Avenue that is being developed by Brookfield Financial Properties.

"Today's agreement with CIBC is important to sustaining the healthy economy of New York City and will help the City maintain its position as the Business Capital of the World," said Mayor Giuliani. "CIBC generates approximately $75 million in annual tax revenue to New York City and, with the addition to the thousands of jobs retained and the thousands of new jobs to be created this is great news for our City."

CIBC World Markets is the global marketing name for CIBC's investment banking affiliates and subsidiaries around the world. CIBC had considered moving approximately 2,200 of its current jobs out of New York City and explored several relocation options, including Jersey City and Toronto. However, as a result of negotiations with the New York City Industrial Development Agency (IDA), the company has agreed to remain and expand in the City. The company currently occupies four different Manhattan locations, including approximately 500,000 square feet at One World Financial Center in Battery Park City.

"This transaction demonstrates CIBC's strong commitment to New York City and our determination to gain a greater share of activity in U.S. capital markets," said David Kassie, Chairman and Chief Executive Officer, CIBC World Markets. "Eight years ago, we developed a strategy designed to make us a major force in U.S. investment banking, focused on the mid--market. That strategy has worked remarkably well. This transaction will allow us to continue to pursue this growth strategy in an environment that is more efficient and cost--effective. CIBC World Markets is very proud to be a part of New York City's commercial renaissance and this agreement demonstrates our confidence that the City will remain pre-eminent among the world's business and financial centers."

CIBC World Markets will consolidate its New York City operations into one location at 300--310 Madison Avenue. CIBC will occupy approximately 850,000 square feet within the 35--story building that is scheduled for completion in 2004. Under the terms of the agreement, CIBC will receive $13.6 million net present value (NPV) in sales tax exemptions for expenditures associated with base building construction, tenant improvement work, and purchase or lease of machinery and equipment for the retention of 2,712 jobs in the City. The company is also eligible to receive discounted energy through Con Edison's Business Incentive Rate with an estimated value of $2.44 million (NPV) over a 15--year period. In line with all other retention agreements negotiated by the Giuliani Administration, the agreement calls for the repayment of some or all of the benefits taken if the company does not maintain this employment level for the 18--year term.

CIBC will also be eligible to receive a maximum of $15.9 million (NPV) in additional sales tax exemptions in consideration of its projected creation of 2,800 new jobs in the City. CIBC will be able to earn benefits toward this amount as it certifies that it has added new jobs over its initial retention base.

"Mayor Giuliani's commitment to further improving the business climate in New York City has helped us retain a company with an outstanding operating history and international reputation," said Deputy Mayor for Economic Development and Finance Robert M. Harding. "With access to 20 million potential customers, a high caliber work force and a highly developed business infrastructure, New York City offers the combination of factors that businesses need to succeed. CIBC's decision to keep its U.S. headquarters in New York City is evidence of our City's economic strength and robust international business community."

IDA Chairman Michael G. Carey said, "The Giuliani Administration has made job creation and retention one of its top priorities, and this agreement represents a major achievement for the City. The impact that CIBC has on our City's economy is significant, not only from the immediate tax revenues the company generates, but also from the ripple effect from the companies that serve CIBC and its employees."

The IDA is the City's primary vehicle for providing financial assistance to businesses, including small industrial and manufacturing companies. The IDA is a conduit agency that issues tax--exempt industrial revenue bonds that assist eligible industrial, not--for--profit and other qualified entities to finance expansion opportunities in New York City. The IDA also offers qualified companies exemptions on sales, real estate and mortgage recording taxes.

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