New York City Mayor Rudolph W, Giuliani last week said the city has reached an agreement with Smith Barney Inc. that will help keep the firm and 9,000 of its employees in New York City.
The agreement came after the city allowed Smith Barney's parent, Travelers Inc., to finance the renovations at several of the firm's offices by issuing up to $550 million of tax-exempt bonds through the city's industrial development agency.
By issuing securities through the agency, Travelers was able to lower its financing costs due to the lower interest rates on the bonds, the city said in a press release.
The deal also gave Travelers up to $6.8 million in sales tax credits, and $15.3 million in sales tax exemptions for new machinery and equipment, the city said.
The large Wall Street firm, which has served as a senior manager on New York City Water Authority bond issues, has agreed to renovate and upgrade several of its offices in Manhattan and Brooklyn.
As part of the agreement, Smith Barney will lease an additional 20,000 square feet of space at the Brooklyn Army Terminal.
-- Charles Gasparino, New York