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November 27, 2004
The Times' Sweetheart Deal: The paper gets huge subsidy, then sells old headquarters building for a huge profit
The Village Voice
"The New York Times Company's sale this month of its 43rd Street headquarters at least doubled the profit its executives predicted when they prodded city and state officials for tens of millions of dollars in tax breaks to build a new office tower, records show."
The total cost to taxpayers for the new Times headquarters will be unknown until the cost of the "state condemnation of land on behalf of the Times," has been finalized:
"The deal calls for the Times to get $26.1 million in tax breaks, but the real price for the public depends on the additional cost for the land. Under the deal, the Times and Forest City will buy the property, but get money back from the city for any costs above $85.6 million. They'll do that by deducting the money from payments that substitute for property taxes."
City and State officials from agencies who negotiated the deal with the Times said that the terms would not be revised in light of the jackpot received for the old headquaters:
"Janel Patterson, spokeswoman for the city Economic Development Corp., noted that the city rejected Forest City Ratner's effort to reopen the deal to get low-cost Liberty Bonds financing. 'We stand by the original deal we reached with the company and the developer of its new building, Forest City Ratner,' she said. 'A deal is a deal.'"
Ok, "a deal is a deal." However, maybe The New York Times Company will consider using its windfall by adding NYC and New York State to their "Neediest Cases" campaign during these budget-busting belt-tightening developer-susidizing times.
Posted by lumi at November 27, 2004 6:19 PM