JPMorgan abandons plans for new headquarters in NYC

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Jamie Dimon,  CEO of JPMorgan Chase
Jamie Dimon, CEO of JPMorgan Chase

The New York Times reported that JP Morgan Chase has decided to stay put after it could not gain $1 billion in incentives to build a new headquarters on the far west side of the city.

Crains New York Business  speculated that if a deal is not struck for the package jobs could move to Delaware and New Jersey.

The  Times earlier reported New York City  and state officials are in talks   with JPMorgan Chase over a potential deal in which the nation’s largest bank would build a $6.5 billion corporate campus with two high-rise towers in the new commercial district on the far West Side of Manhattan.

The deal is significant for Delaware, which has seen additional jobs from Chase, which has been working to move jobs to lower cost areas. Chase may be the state’s largest banking employer eclipsing Bank of America, with a headcount of more than 7,000.

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While JPMorgan Chase indicated it would remain in Manhattan, the decision would appear to be good news for Delaware, a state has seen JP Morgan add staff.

JPMorgan Chase, earlier this year, acquired the AstraZeneca South Campus, near Wilmington for future expansion and moved into space in the Ogletown area south of Newark at the old MBNA site.

While many of the JPMorgan Chase jobs have gone to New Jersey, Delaware remains a favored location for the company, based on public statements.

But the Times reports a deal with the bank poses political risks for both the state and the city. Chase had initially sought, by one account, more than $1 billion in concessions from the city and the state while it continues to pare its payroll in the city. However, it has pared down that number.

At the same time, the Times reports the complex, beyond construction costs, would not mean additional jobs for Chase in Manhtattan, as it focuses on lower cost areas. Chase has been low key in discussing job moves out of the city.

In Delaware, the financial services giant has not sought tax breaks.  It did receive approval for a state  program that helps pay for equipment at new or upgraded sites. New Jersey has far deeper pockets than Delaware and has come up with major incentives for smaller projects in southern New Jersey.

 

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