NYT,pg1: Goldman Sachs Decides to Stay at Ground Zero

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Goldman Sachs Decides to Stay at Ground Zero
By JENNIFER STEINHAUER
Published: August 11, 2005


Goldman Sachs has agreed to build a $2 billion new headquarters across the street from the former World Trade Center site, reversing its decision this spring to abandon its building plans, according to city, state and company officials who have been briefed on the investment firm's plans.

The firm had balked earlier at building there after being dissatisfied with the security and traffic plans proposed by the state. Changing Goldman's mind, however, did not come cheap. Both the city and the state had to offer many new inducements that they did not present the first time.

Under the new agreement, which still requires approval of the firm's board, the city comptroller and some state authorities, Goldman would get at least $150 million in new city and state tax credits, as well as $600 million of new Liberty Bonds to add to the $1 billion in previously issued bonds, the officials said. Liberty Bonds, which reduce private borrowing costs at government expense, are intended primarily for commercial tenants in Lower Manhattan.

In addition, the city has agreed to change the streetscape around Site 26, where the two-million-square-foot office tower would rise on West Street. For example, the bike lane and sidewalk on the street would be narrowed to accommodate bollards to protect the building from truck bombs. The direction of traffic on Murray Street would probably be reversed to reduce the number of vehicles whizzing by....The city and state were willing to make the concessions, however painful, because Goldman Sachs is not just any tenant. Officials have considered it crucial to revitalizing commercial downtown. The firm's decision is likely to encourage other businesses that have avoided coming into Lower Manhattan since the attack on the trade center, and officials hope its return will secure Lower Manhattan's primacy as a financial powerhouse.

"This is the biggest shot in the arm for downtown in a very long time," said Senator Charles E. Schumer, Democrat of New York, who has been highly critical of the lack of progress this year in Lower Manhattan. "Hopefully, it is a harbinger of things to come. Businesses have been on hold waiting to see what Goldman would do. The only regret is that it took so long."...


http://www.nytimes.com/2005/08/11/nyregion/11goldman.html