Bear Stearns cancels Jersey City move

**NYguy** · February 26th, 2003, 09:31 AM

Daily News...
Bear Stearns seen staying in B'klyn *

After threatening city officials it would relocate 1,500 employees to New Jersey unless it got new tax breaks, Bear Stearns may keep them in Brooklyn after all.

The investment bank, headquartered at 383 Madison Ave. at E. 46th Street, also has 320,000 square feet in Brooklyn's MetroTech complex, where it houses administrative operations. In December, Bear Stearns said those functions would head across the Hudson without new money from the city.

The city balked, citing 1991 and 1997 deals that gave Bear $100 million. The 1991 deal brought Bear to Brooklyn in the first place, giving the company $30 million for not moving the 1,500 jobs to Whippany, N.J.

Real estate execs say Bear Stearns is now likely to stay in MetroTech anyway. Their lease expires next year, and the company is negotiating a new deal with landlord Forest City Ratner, headed by Bruce Ratner. Though a lease has not been finalized, they're discussing rents starting slightly above $20 per square foot, sources said.

Spokesmen for Bear and Forest City declined to comment. Bear's broker, Insignia/ESG vice chairman David Levinson, insisted no decision had been made.

"Everything's on the table right now," Levinson said.

The Jersey option is less attractive now. Gov. Jim McGreevey recently cancelled his state's Business Employment Incentive Program, which gave generous tax breaks to companies which relocated there.

**dbhstockton** · February 26th, 2003, 12:25 PM

Gov. Jim McGreevey recently cancelled his state's Business Employment Incentive Program, which gave generous tax breaks to companies which relocated there.

I wasn't paying attention when he did this (I'm a new jersey resident). *It seems budget pressures will make politicians do remarkably short-sited things. *It seems to be going against the grain of our great Garden State. *What's more new Jerseyean than tax incentives to corporations? *(no sarcasm intended)

**Kris** · February 26th, 2003, 02:36 PM

The state can't afford it anymore. Not enough benefits.

**billyblancoNYC** · February 26th, 2003, 03:03 PM

I say AMEN to that. *

I'd love to see the tide turn back to NYC (Bk and LIC especially).

If there is, in fact, a mini-exodus, then it seems to prove that it really is all about the money and not NJ itself.

**Agglomeration** · February 26th, 2003, 08:40 PM

The New Jersey State Government is facing a budget deficit as large as New York City's. Trenton had no choice but to end the program because of a shortage of money and growing hostility from the City. Maybe now Jersey will have enough sense to get its own house back in order rather then skimming from across the Hudson. *

**NYatKNIGHT** · February 27th, 2003, 11:12 AM

Skimming from across the Hudson? More like a safety net. At least when companies relocated to NJ they stayed within our economic metro area. This doesn't necessarily mean that businesses will now stay in the city, it means they will go farther away. Companies don't leave the city so they can go to NJ, they leave because they can't afford the city. Never mind New Jersey, the city has to get ITS house in order.