The report states that Morgan would pay the Port Authority of New York and New Jersey $300 million for rights to the building, which is set for completion in five years. It would take a 90-year lease on the space.
The program is the result of long negotiations between the bank and the city, with sticking points revolving around incentives. Apparently the bank had threatened to relocate from the city--possibly to New Jersey of Connecticut, if "an acceptable deal" could not be struck.
Clearly incentives are no longer an issue, and the deal includes tax breaks as a well as a reduction of power costs. New York State Governor Eliot Spitzer is expected to formally unveil the deal this morning, the AP report stated.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
