Citigroup Inc. plans to spend about $10 million on new offices for Vikram Pandit, its chief executive, and his lieutenants.
Affidavits filed with the New York Department of Buildings show Citi expects to pay at least $3.2 million for such basic construction tasks as wall removal, plumbing and fire safety.
By the time architect's fees and expenses such as furniture are added, the tally for the offices at the New York company's Park Avenue headquarters will be at least three times that figure, according to a person familiar with the project, who asked not to be identified, because he is not authorized to comment.
Citi said the construction is part of a global space-saving initiative. It plans to reduce office space worldwide by more than 10 million square feet to help save $15 billion over the next few years, according to a company official, who asked not to be identified.
A person briefed on the process said the New York company began planning the renovation in June and obtained demolition permits in September, before it received any bailout funds.
Plans and contractor instructions on file with the city specify the installation of at least one Sub-Zero Inc. refrigerator and icemaker, along with "premium-grade" millwork and Madico Inc. "Safety Shield 800" blast-proof window film.