Republic National Bank will keep its data operations in the Big Apple instead of moving more than 1,000 jobs to New Jersey in exchange for a $6.4 million tax break and other incentives from the city.
The financial institution had planned on moving its data center to an undisclosed New Jersey location, but New York City's Economic Development Corp. worked out a deal to help the bank finance a $23 million renovation of its current data center in midtown Manhattan and build a new $55 million addition to its headquarters complex.
The city will also waive $6.4 million in sales taxes on equipment purchases.
In return, the bank agreed to keep 900 jobs in New York City and also create 200 new jobs upon completion of the project in 1996.
"The $6.4 million in sales tax the city is waiving is nothing compared to the $100 billion we will realize from the presence of new employees," New York Mayor Rudolph Giuliani said.
Republic's chairman and chief executive, Walter Weiner, said his decision was partly based on his confidence that the new Republican administration is more friendly to business than the previous Democratic one.
"It's a great atmosphere and we feel more comfortable here," Mr. Weiner said.
Republic National Bank is a subsidiary of Republic National Corp., a $41 billion-asset holding company. The bank has 56 branches in the five boroughs, as well as nearby Nassau, Suffolk and Westchester counties.