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NBC Universal Subsidy News

NBC Universal, Inc. (formerly the National Broadcasting Company) seeks a $1.5 million property tax abatement and permission to use previously authorized City and State sales tax exemptions in connection with the renovation of approximately 1,380,000 square feet of office space at 30 Rockefeller Plaza in Manhattan.  In exchange for the additional benefits, NBC Universal has agreed to:

    * extend its overall New York City job commitment by 13 years (to December 31, 2023);

    * increase its required job commitments from 2,250 total jobs to 3,850 total jobs by June 30, 2009, and

    * relocate MSNBC headquarters currently based in Secaucus, New Jersey (421 jobs). 

According to New Jersey Policy Perspective, New Jersey gave MSNBC $7.8 million in tax breaks and sold $167.5 million in bonds to purchase equipment it then leased to MSNBC—forfeiting about $8 million in sales tax revenue. In return for these breaks granted in 1996, MSNBC was supposed to remain in the state for 15 years (it is leaving after 10).

* Read the New York City Industrial Development Agency project materials regarding the deal.

* Read the press release issued by New Jersey Policy Perspective.

* Read testimonies submitted by Good Jobs New York and New Jersey Policy Perspective.

* Read news coverage about how the deal could facilitate the replacement of existing, union employees with nonunion, potentially part-time employees from New Jersey.

Background

The initial sales tax breaks from New York City were secured in 1988 when NBC received one of the most generous corporate subsidies in the city’s history, securing $72 million in PILOT (payment in lieu of taxes) savings, sales tax exemptions, and commercial rent tax breaks.  The IDA also agreed to issue $800 million in tax-exempt bonds to finance the project.  NBC received a second offering of subsidies from the Giuliani administration in 1998.