City and State Award Job Retention and Creation Program Grant to Encourage Financial Services Firm to Expand in Lower Manhattan
SecondMarket to Receive up to $1.2 Million for Adding 367 Employees over Four Years
Maintaining the City as the Global Financial Services Capital and Promoting Entrepreneurship Is Part of Mayor Bloomberg’s Five Borough Economic Opportunity Plan
New York City Economic Development Corporation (NYCEDC) President Seth W. Pinsky and Empire State Development Corporation (ESDC) Chairman & CEO-designate, Dennis M. Mullen announced today that SecondMarket, Inc. and its affiliate, Pluris Valuation Advisors, will receive a $1.2 million grant from the WTC Job Creation and Retention Program (JCRP) in exchange for creating up to 367 new jobs over the next four years in Lower Manhattan.
The HUD-funded JCRP was approved in 2002 to assist businesses in Lower Manhattan that committed to remaining or expanding in Downtown after the events of September 11, 2001. The program is administered by ESDC in cooperation with NYCEDC. Earlier this year NYCEDC and ESDC announced that the City and State would target up to $30 million of unused JCRP funds to reinforce efforts to solidify Lower Manhattan as the heart of the financial services industry and to attract financial services companies from overseas. The expanded program will now support projects creating at least 75 jobs in order to encourage growth in smaller businesses. Companies will receive up to $4,000 in grants for each new job created, with the exact amount depending on the project’s economic impact on both the City and State and the firm’s demonstrated need for public funds. Grant recipients will commit to maintaining the newly created jobs for at least 10 years.
“The current economic downturn has struck at the heart of the Financial Service sector in Lower Manhattan, and this program seeks to restore and strengthen the financial services ‘eco-system’ by encouraging businesses like SecondMarket to grow, contributing to the recovery of the financial district and the City as a whole,” said NYCEDC President Pinsky. “We are now actively working with other firms to encourage them to expand their operations in Lower Manhattan.”
“The economic challenges of our great state have hit the financial services sector in Lower Manhattan especially hard. However through the retargeting of the Job Creation & Retention Program we have been able to attract businesses like SecondMarket, which will contribute to the revitalization of Lower Manhattan," said Dennis M. Mullen, Empire State Development Chairman & CEO-designate. "Together with EDC, we are positioning New York to recapture the next wave of growth in the Financial Services industry. We must continue to make smart investments and utilize our shared assets to foster sustainable growth, create jobs, revive our economy and expand opportunities for all New Yorkers.”
“We are thankful for this opportunity and look forward to working with the NYCEDC and ESD over the next several years,” said SecondMarket Founder and CEO Barry E. Silbert. “SecondMarket is proud to take a leadership role in helping New York City maintain its rightful place as the center of the financial services industry.”
SecondMarket and Pluris Valuation Advisors currently have 90 employees in Lower Manhattan and have already outgrown their shared space at 26 Broadway. Their growth projections of 367 new employees in the next five years include expanding their in-house team of programmers and development support members in Lower Manhattan. Under the terms of the agreement, the companies will receive funds upon verification of significant job creation in two to four years or sooner if their job-growth warrants.
The two companies already generate an estimated $2.3 million in tax revenue annually for the City, and $1.5 million for the State of New York. Increasing their employment by 367 workers could increase the City tax revenue to $11.8 million and State tax revenue to $2.1 million a year.
Founded in 2004, SecondMarket is the largest marketplace for illiquid assets, including private company stock, limited partnership interests in hedge funds and private equity, auction-rate securities, bankruptcy claims, structured products, whole loans and restricted securities in public companies. The company’s trading platform currently has over 3,000 varied participants such as global financial institutions, hedge funds, private equity firms, mutual funds, corporations and other institutional and accredited investors. Collectively they have more than $1 trillion in assets under management.
Since its inception in 2002, JCRP grants totaling $256 million have helped gain the commitment of 70 companies to remain or move to Lower Manhattan, creating and retaining nearly 68,000 Lower Manhattan jobs.
New York City Economic Development Corporation is the City’s primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC’s mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City’s competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City’s many opportunities.
Empire State Development is New York’s chief economic development agency. ESD also oversees the marketing of “I LOVE NY,” the State’s iconic tourism brand. For more information, visit www.nylovesbiz.com
About the Five Borough Economic Opportunity Plan
The Five Borough Economic Opportunity Plan is a comprehensive strategy to bring New York City through the current economic downturn as fast as possible. It focuses on three major areas: creating jobs for New Yorkers today, implementing a long-term vision for growing the city's economy, and building affordable, attractive neighborhoods in every borough. Taken together, the initiatives that the City has launched to achieve these goals will generate thousands of jobs and put New York City on a path to economic recovery and growth.