The city and state have prepared a package of approximately $50million worth of incentives to be distributed to Nasdaq over aperiod of about two decades. The stock exchange created by theNational Association of Securities Dealers will itself payBrookfield Properties Corp. $50 per sf in rent. Nasdaq will bepaying for the top two floors of One Liberty Plaza where Long TermCredit Bank of Japan had recently been paying $40 per sf. With atotal of 260,000 sf in space, Nasdaq will be paying $13 million peryear.

At the same time, the city's Economic Development Corp., theEmpire State Development Corp., the city itself and the state areplanning to join together to raise approximately $1.15 billion tobuild a new trading facility for the NYSE. Two years ago when MayorGiuliani and Governor Pataki announced the plan, the estimatedconstruction cost was $400 million. Now that figure has jumped to$540 million. Just to buy the property at the corner of Wall andBroad streets will cost $350 million, now including payments toJ.P. Morgan and Rockrose Development Corp.

The NYSE plans also call for the EDC to have a 1.3-million-sfoffice tower built at $765 million. When first announced, the mayorand governor explained the project as being a 650,000-sf tradingfacility. Now the project has become a total of 1.9 million feet.One of the developers reportedly in the running for the project isBrookfield Properties, the owner of the Nasdaq's new space.