MAYOR ANNOUNCES AGREEMENT WITH INTERNATIONAL INVESTMENT BANK TO REMAIN AND GROW IN CITY
581 JOBS RETAINED, 400 NEW JOBS PROJECTED; ALL BENEFITS TIED TO GROWTH
Mayor Rudolph W. Giuliani announced today his Administration's second retention agreement tied exclusively to job growth. The agreement with Furman Selz LLC, an international investment banking, financial services and securities firm, keeps the company's U.S. headquarters in the City for the next 16 years, retains 581 jobs and creates a projected 400 new jobs in New York City during this period. The company will be eligible for benefits only after it achieves specific employment thresholds.
In order to accommodate its planned expansion, Furman Selz considered an attractive benefits package from New Jersey that would entail relocating 215 support positions to a site in Weehawken. Instead, the company will keep 85,000 square feet of space at 230 Park Avenue, its current location, and will rent 205,000 square feet of additional space at 280 Park Avenue.
"This is another win for New York City, the business capital of the world," said Mayor Giuliani. "This agreement keeps 580 jobs here and encourages Furman Selz to grow in the City by offering tax benefits only as the company increases its staff. Furman Selz has been in New York City for almost 25 years, and I'm very pleased my Administration is helping the company plan its future here."
Over the term of the agreement, negotiated through the New York City Economic Development Corporation (EDC) and approved by the Industrial Development Agency (IDA), Furman Selz will receive a total benefit package of $2.4 million in sales tax exemptions as well as energy discounts according to the company's rate of job growth. The City's portion of these benefits is $955,000.
"Furman Selz was founded in New York City almost 25 years ago as a small investment boutique by five Wall Street analysts," said Furman Selz Chairman and CEO, Edmund A. Hajim. "Since then we have successfully expanded our New York offices to approximately 600 professionals and the firm provides a full range of products and services to the international investment community. We are pleased that this agreement enables Furman Selz to continue our expansion in New York City, the center of the world's financial community."
Including this agreement, the Giuliani Administration has now retained 31 major companies, through its business retention program, representing 71,939 jobs retained and a projected 26,420 new jobs over the next 10 to 20 years. The total tax revenue generated by these companies to the City is $1.15 billion a year. This City's first retention agreement tied exclusively to job growth was completed this past April with ING Barings.
In the event the company does not maintain the specified job level, the agreement calls for the repayment or reduction of some or all of the benefits taken, as well as penalties, and an elimination of any unused benefits.
Furman Selz generates $10 million annually in total City tax revenues. As a result, the pay-back period to the City is 1.1 months.
Furman Selz is a subsidiary of Furman Selz Holdings LLC. The company was started in 1973 as a research-driven investment boutique. It now offers financial services, investment banking, institutional brokerage, research and money management services.
Furman Selz has six seats on the New York Stock Exchange and a capitalization of more than $200 million. The company has more than $15 billion in assets under management and administration, and its annual revenue is more than $400 million.
EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, EDC helps develop businesses and create jobs throughout the five boroughs.
IDA is a public benefit corporation contractually administered by EDC and established to encourage business development and expansion.
Contact Us | FAQs | Privacy Statement | Site Map