Bloomberg News

Pearson Tax Breaks Lure 600 Jobs to Manhattan, Mayor Says

September 19, 2011

(Updates with New Jersey offer in sixth paragraph.)

Sept. 19 (Bloomberg) -- Pearson Plc, owner of the Financial Times, intends to add 600 media and technology jobs in offices near its current operations in Lower Manhattan’s Hudson Square, Mayor Michael Bloomberg said.

The company, whose U.S. businesses also include publisher Penguin Group US, will receive at least $13.5 million in city- arranged discounted electricity bills and state tax credits over 10 years starting in 2014 when it moves into 270,000 square feet (25,000 square meters) of space at 330 Hudson Street, the mayor’s office said in a news release.

The city’s Economic Development Corp. arranged $4.5 million in “Business Incentive Rate” energy savings, and the state’s Empire State Development Corp. granted $9 million in tax credits over 10 years to counter efforts by New Jersey to keep the jobs, the news release said. Other city incentives for the company and the building’s developer may be available, the mayor’s office said.

“Pearson’s relocation to and expansion at Hudson Square and its long-term investment in New York City is the latest example of the private sector’s confidence in the direction of our city and future growth of our local economy,” Bloomberg said in a statement.

The expansion includes relocation of employees from Upper Saddle River, New Jersey, and White Plains, New York, with an average salary of $72,000 a year, the mayor’s office said. Pearson will invest an additional $21 million in the renovation.

New Jersey Jobs

New Jersey’s Economic Development Authority approved more than $66 million in tax credits to help Pearson move 646 employees to Hoboken from offices in Upper Saddle River, with an additional $16.5 million offered in the event the company creates 800 more jobs in the state, said Timothy Lizura, the authority’s senior vice president for finance. The state tax- credit program is intended to encourage development of a $90 million company facility in a $240 million building near Hoboken’s train station, Lizura said.

“It’s about bricks and sticks, not just jobs,” Lizura said in an interview.

Upper Saddle River Mayor Kenneth Gabbert, whose municipality stands to lose more than 1,200 jobs, didn’t immediately return a telephone call.

Bloomberg announced the move at a news conference today attended by Will Ethridge, CEO of Pearson Education, city officials, and Beacon Capital Partners Founder and Chairman Alan Leventhal, the developer and leaseholder who invested $113 million to renovate the eight-story structure.

Hudson Square has attracted media companies including New York Magazine and Viacom Inc.’s MTV, and advertising agencies including Saatchi & Saatchi and Omnicom.

The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP.

--Editors: Stacie Servetah, Mark Tannenbaum

To contact the reporter on this story: Henry Goldman in New York at hgoldman@bloomberg.net

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net


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