Cities sometimes fall over all themselves to attract and retain businesses.
Even in such hot locations as New York City, on the island of Manhattan.
This is what the city (and state) are giving up in order to encourage life science and biosciences companies to relocate to the East River Science Park (one of the new developments, scheduled for completion in 2009):
[Developer] Alexandria Real Estate Equities … negotiated a land lease with the city for 49 years with two 25-year options. The parcel holds a parking lot and an old laundry building that is part of the Bellevue Medical Center campus.
Once construction is complete, Alexandria will pay the city $2 million a year, a figure that will escalate over time, said the New York City Economic Development Corporation.
Alexandria will also receive subsidies. Infrastructure work, like relocating a sewer and other utilities and cleaning up the site, will be paid for with $13.9 million from the city, $27 million from the state and possibly $2 million in federal money. There will also be property tax abatement over 25 years worth $251 million, and breaks on city and state sales tax and recording taxes worth about $22.7 million.
I’ll leave it up to you to decide whether or not spending that much money (or, giving up that much money, I should say) is worthwhile, or sustainable.
Bringing Laboratory Space Back to New York – By Alison Gregor, The New York Times