Lower Manhattan has been in a state of transformation since the horror of September 11th. Many businesses have moved up to Midtown, New Jersey and even farther than that. Meanwhile a slew of buildings have been converted to condominiums and rentals to attract people to live down in the financial district. Out of all the neighborhoods of Manhattan, I think this is the least exciting area when it comes to nightlife and culture. I guess if you are a history buff and like to live amongst the relics of early New York then it would be great. Of course, that isn't the cup of tea many New Yorkers prefer.
The boom in residential units available does not mean the city is giving up on the area from a business perspective. The city and state still want major companies to stay downtown as the rebuilding of the WTC area begins. Though instead of doing smart business with some of the world's corporate giants, Bloomberg and Spitzer have agreed to give away property at rock bottom prices. One example would be the deal just struck with JP Morgan Chase.
From WNYC:
REPORTER: The financial giant will receive $200 million in tax incentives from the city and the state, to move 7-thousand jobs to the 42 story tower downtown. The company will pay the Port Authority $300 million for the 92-year-lease, and in return will receive an unspecified amount of tax incentives and benefits.
Bettina Damiani, of the government watchdog group, Good Jobs New York, is critical of the plan. She says government officials are presenting lower Manhattan as a source of giveaways instead of a business epicenter. She also criticizes the lack of transparency in the subsidies given to the company.
DAMIANI: I'd venture that the state and the city know exactly how much is being provided to JP Morgan Chase. The transparency issue here is very troubling.
The financial powerhouse is allowed to take this charity while keeping its world headquarters at the current tower up on Park Ave. in Midtown. How this can be conceived of as fair to the people of New York is beyond me. Doing the math, JP Morgan Chase is going to pay $100 million for 92 years worth of rent, or slightly over $1 million a year, not including the undisclosed benefits.
For all we know, the building is being given to them for free. Meanwhile the company is free to make billions of dollars at the new site. Imagine if all New Yorkers were given this type of deal to live downtown, living in the city would become a whole lot less expensive.
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