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Mayor Bloomberg And Governor Pataki Break Ground On Goldman Sachs New World Headquarters In Lower Manhattan

November 29, 2005

Environmentally Responsible 43-Story Office Tower to Open in 2009

Mayor Michael R. Bloomberg, Governor George E. Pataki, Assembly Speaker Sheldon Silver and The Goldman Sachs' Group, Inc. Chairman & CEO Henry M. Paulson, Jr. today broke ground on Goldman Sach's new world headquarters in Lower Manhattan.  The environmentally responsible, 43-story building will be located on Site 26, the last remaining commercial parcel in Battery Park City.  Site 26 is located on West Street between Vesey and Murray Streets.  The building will serve as the firm's world headquarters, housing investment banking, investment management, and trading operations.  Initial occupancy is scheduled for 2009. 

"With this new building, Goldman Sachs is making the kind of commitment that ensures that Lower Manhattan will remain a center of global commerce in the 21st Century," said Mayor Bloomberg.  "Today's groundbreaking is yet another important step in the revitalization of Lower Manhattan as Goldman Sachs commits to retaining 9,000 employees in our City and intends to add 4,000 additional jobs in years to come.  I commend Goldman Sachs' sound business decision to remain rooted at the center of the financial service industry and their willingness to serve as a catalyst for the diverse commercial and residential community that is certain to be the future of Lower Manhattan." 

"Today's start of construction on Goldman Sachs' new state-of-the-art world headquarters directly across the street from the World Trade Center site is yet another powerful demonstration of Lower Manhattan's resurgence," said Governor Pataki. "Goldman Sachs building their new headquarters and maintaining 9,000 employees with the expectation of creating thousands of jobs in the next decade reinforces Lower Manhattan's destiny as a world-class central business district and the financial capital of the world. The construction of the World Trade Center Transportation Hub, the Fulton Transit Center and the deconstruction of 130 Liberty Street are already underway. In the next few months $9.9 billion worth of construction will be underway and we will commence construction on the remaining signature projects--the Freedom Tower and "Reflecting Absence", the memorial to our nearly 3,000 lost heroes. I again congratulate Goldman Sachs on its decision to continue to make Lower Manhattan its home and on its new world headquarters."

"Working with Goldman Sachs and working together as New Yorkers, we can recapture and enhance Lower  Manhattan's stature as the financial and business capital of the world,"  said Assembly Speaker Sheldon Silver.  "By breaking ground here today in Battery Park City, we are not only writing the next chapter in the story of partnership between a  remarkable corporation and a remarkable city, we are also sending a loud  and clear message to the business world that Lower Manhattan is still  the place to be and grow."

"Goldman Sachs has called Lower Manhattan its home for136 years and we are proud to reaffirm our commitment to this neighborhood and to the City of New York," said The Goldman Sachs Group Chairman and Chief Executive Officer Henry M. Paulson, Jr.  "This event marks an historic moment for us and we are most grateful to everyone who worked so hard to make it possible."

"Today's Goldman Sachs groundbreaking will serve as a beacon for lower Manhattan's continuing growth and re-building. Goldman's decision to stay and invest in Lower Manhattan means 13,000 good-paying jobs for New Yorkers and is a prime example of how we can defeat the culture of inertia when we all pull together," said Senator Charles E. Schumer.  "As one of the leading financial services companies in the world, Goldman's presence will play a critical role in increasing the forward momentum of downtown development."

"Following the tragic events of September 11th, I was proud to have worked with my colleagues in Congress to secure $20 billion in federal aid for New York," said Senator Hillary Rodham Clinton.  "Major employers like Goldman Sachs needed to know they had a partner in government to ensure that Lower Manhattan could continue to sustain their businesses in the area, I am pleased to be an ongoing partner in supporting economic development in Lower Manhattan and thank Goldman Sachs for their commitment to the future of Lower Manhattan and New York City."

"Goldman Sachs' decision to build their world headquarters right here in Battery Park City is the right one," said Battery Park City Authority Chair James F. Gill.  "New York City is the financial capital of the world and Lower Manhattan is its epicenter.  I want to congratulate, Governor Pataki, Mayor Bloomberg, Hank Paulson and the scores of people who worked to make this ground breaking a reality.  This day marks another positive step forward in the recovery of this neighborhood after the September 11th attacks."

The new Goldman Sachs world headquarters is to be located on West Street between Vesey Street and Murray Street.  Designed by Henry N. Cobb of Pei Cobb Freed & Partners, the building will rise to a height of approximately 740 feet and will house state-of-the-art trading facilities, amenity spaces, meeting facilities and office floors.  With a sweeping, curved façade facing the Hudson River, a stainless steel and glass exterior, and three major setbacks as the building rises, the building's form reinforces its relationship to its surroundings.

The project will be partially financed with up to $1.65 billion in Liberty Bonds which were made available by the Federal Government after September 11th, 2001 to spur construction projects Downtown.  Goldman Sachs is also eligible for up to $25 million in Job Creation and Retention Program funds. Under the Lower Manhattan incentives legislation and the ground lease with Battery Park City Authority, a sales tax exemption on construction costs, initial fit-out expenses and equipment purchases is also available. Goldman Sachs will generate at least $8 billion a year in direct and indirect economic activity in the City over the life of the deal. The total discretionary incentive package provided to Goldman Sachs is worth $115 million, independent of PILOT Payments, in State and City funds over the same period.  This is a fraction of the revenue that Goldman Sachs generates in taxes for the City and State in a single year.

In addition to ground rent, Goldman Sachs is expected to pay approximately $150 million in civic facilities fees to the Battery Park City Authority during the term of the lease.  In addition, as a contribution to the new neighborhood, Goldman Sachs has pledged $3.5 million to the New York Public Library branch planned for a site at Murray Street and North End Avenue, and an additional $1 million to be used for a community center in a new residential development in Battery Park City.

Edward Skyler / Silvia Alvarez

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Joanna Rose
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