deloitte public hearing package_v2
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NYCIDA PROJECT COST/BENEFIT ANALYSIS
July 29, 2010
APPLICANT PROJECT LOCATION
Deloitte LLP 4 World Financial Center
1633 Broadway 250 Vesey StreetNew York, NY 10019 New York, NY 10080
Deloitte LLP is the United States member firm of Deloitte Touche Tohmatsu (DTT), a Swiss Verein(association) of globally connected member firms. In the New York Tri-State (New York, New Jersey andConnecticut) region, Deloitte LLP and its subsidiaries (collectively Deloitte) have approximately 6,000employees, of which over 4,200 are located in New York City. Deloittes current headquarters is located at1633 Broadway in Midtown Manhattan.
Deloitte is in the process of negotiating a lease for approximately 390,000 square feet at 4 World FinancialCenter (the Initial Space). Subject to execution of the lease and the availability of Agency assistance, thisspace will house Deloittes U. S. headquarters and the most of its New York City operations. It is also
expected to house the global headquarters of DTT. The Initial Space will be occupied in two phases. Thefirst phase will consist of approximately 110,000 square feet and will accommodate the relocation ofDeloittes U.S. headquarters. This space is scheduled for occupancy in the third quarter of 2012. The secondphase will consist of approximately 280,000 square feet and will house the most of Deloittes New York Cityworkforce and operations. This space is scheduled for occupancy in the third quarter of 2013.
In addition to the Initial Space, Deloitte also has an option to lease at 4 World Financial Center: a) prior to thedate it occupies any space in the Initial Space, an approximately additional 120,000 square feet; and b)approximately 120,000 additional square feet as the need may arise during specified time periods. Deloitteanticipates fully consolidating its existing New York City operations at 4 World Financial Center byDecember 31, 2017. With its move to Lower Manhattan, Deloitte will also maintain a conference center inMidtown for the convenience of its clients located nearby.
The Agency benefits will assist Deloitte in connection with the renovation of office space, as well as theacquisition and/or leasing and installation of machinery, equipment, furniture, fixtures and other tangiblepersonal property to be used at 4 World Financial Center. The maximum Agency benefits to be earned andreceived by Deloitte is $21,000,000 (nominal) in growth credits that can only be received and used if Deloitteincreases its overall New York City employment by up to 2,100 new employment in Lower Manhattan aboveits current New York City employment of 4,211. In order to receive the maximum Agency benefits, Deloittewill be required to maintain these new employees in New York City, its 4,211 existing New York Cityemployees, and its headquarters in Lower Manhattan, during the 17-year project term.
B. Cost to the City
NYC taxes to be exempted:Sales and Use Tax Exemption $10,648,000
Total Cost to NYC $10,648,000
C. Benefits to the City Estimated New York City additional taxes to be generated by project with 2,100 incremental jobs (NPV, 17
years, 6.25%): 535,660,000*
* Including the one-time impact of renovation of $15,322,000
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