Bloomberg News reports that the largest U.S. bank wants to build two towers totalling 4 million square feet (372,000 square meters), which would cost about $6 billion, a person with knowledge of the discussions said.
The company is in talks with developer Related Cos., New York City and the state for a deal, which could fall apart as the sides negotiate subsidies and costs.
The bank has requested at least $1 billion in property-tax abatements in the form of payments in lieu of taxes, or PILOT, and other subsidies, which city officials have rejected, said Wiley Norvell, a spokesman for Mayor Bill de Blasio. The city already has invested more than $1 billion in the far west side area, where Related is planning a $20 billion development, to make the neighborhood commercially viable, he said.
If the deal goes forward as proposed, the bank probably would sell its 1.3 million-square-foot headquarters building at 270 Park Ave. as well as 383 Madison Ave., a tower completed in 2001 as the headquarters of Bear Stearns Cos., which JPMorgan took over when it bought that firm in 2008, the person said.
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