Testimony of Richard T. Anderson President New York Building Congress to Empire State Development Corporation on New York Stock Exchange Project

January 8, 2001

The New York Building Congress, with considerable enthusiasm, endorses the proposal for a new facility for the New York Stock Exchange. On few occasions has New York had a single development project of greater importance to the City's economic future. This proposal should go forward with dispatch and with the strong support of government, business and civic leaders.

As a coalition of the design, construction and real estate industry, the Building Congress is especially concerned with the overall economy of New York City. By retaining the New York Stock Exchange in a new facility in Lower Manhattan, the combined efforts of the State and City will assure New York's continued pre-eminence in the global financial markets. It also will strengthen the role of Lower Manhattan in the regional economy by developing Class A office space at a time when New York City is realizing a critical shortage. In fact, the downtown vacancy rate for Class A office space is less than 5 percent.

The Building Congress also is mindful of the construction activity generated by this project. During the period of design and building, the project will create considerable direct and indirect employment in New York City and the surrounding region, as well as $58 million in tax revenue during construction.

Permanent employment will be considerably greater, with an estimated on-site employment of nearly 14,000 at both the Stock Exchange and within the office tower. Projected annual salaries within the combined structure are expected to exceed $2 billion, with over $1.6 billion directly attributable to the NYSE. Salaries directly related to the construction period will approach $275 million in the City and nearly $500 million statewide.

The Building Congress is convinced that the estimated $480 million in public funds contributed to the project for design, development and construction are one of the best investments which the City and State can make. Economic leverage of this magnitude may be unprecedented for a publicly-supported facility, and we are pleased to see that all project revenues from the Stock Exchange and the tower developer, including payments-in-lieu-of-taxes and ground-lease revenues, will inure to the City as a return on the City's site-acquisition investment.

The New York Stock Exchange truly is a one-of-a-kind institution. With three thousand companies listing their shares on the exchange, including an aggregate global market capitalization of almost $17 trillion, the New York Stock Exchange is at the economic core of New York City, the region and the world. We applaud the Empire State Development Corporation and the New York City Economic Development Corporation for their efforts to prepare the general project plan and pave the way for the Stock Exchange's continued stabilizing presence in Lower Manhattan.

The Building Congress and its 1,500 individual members urge that every effort be made to build a new facility for the New York Stock Exchange as expeditiously as possible. All New Yorkers have a stake in this project. We are confident that the proposed plan can and should be implemented promptly.