Governor Pataki, Mayor Bloomberg, Speaker Silver and Goldman Sachs Announce New Headquarters in Lower Manhattan

Investment Bank Makes Renewed Long-Term Commitment to Lower Manhattan, Will Build 2.1 Million Sq-Ft World Headquarters in Battery Park City Across from the World Trade Center Site

Construction of Environmentally Responsible Green Office Tower is Expected to Begin Later This Year

Governor George E. Pataki, Mayor Michael R. Bloomberg and Assembly Speaker Sheldon Silver announced today that the State and City have reached an agreement with Goldman Sachs to move forward with plans for a new world headquarters building on Site 26, the last remaining commercial parcel in Battery Park City. Goldman Sachs is committing to maintaining more than 9,000 employees and a significant part of its trading operations in Lower Manhattan through 2028. In addition, Goldman Sachs anticipates creating approximately 4,000 new jobs by 2019. Construction of the 43-story office tower is expected to begin later this year with initial occupancy scheduled in 2009. The total cost of the project is estimated to exceed $2 billion.

"Goldman Sachs' decision to construct their state-of-the-art environmentally-friendly world headquarters in Lower Manhattan is a powerful demonstration of confidence in Downtown's revitalization from a leader in the financial services community," said Governor George E. Pataki. "Goldman Sachs' plans to locate across from the World Trade Center site and expectation of creating thousands of jobs in the next decade sends a powerful message that not only is the rebuilding on track, but that Lower Manhattan's destiny as a world-class central business district will be achieved. Goldman Sachs' over $2 billion investment is a critical element of the over $9.9 billion Lower Manhattan construction boom that will take place within the next six months and within a three-block radius of the World Trade Center site. I congratulate Goldman Sachs on its decision to continue to make Lower Manhattan its home."

"Goldman Sachs' decision to build their new headquarters in Battery Park City means keeping and creating thousands of permanent and construction jobs in Lower Manhattan," said Mayor Bloomberg. "This project is a shot in the arm for the development of Downtown and means billions of dollars in tax revenue for New York City and State. I am particularly pleased that the City, State and Goldman Sachs were able to produce an agreement that maintains Lower Manhattan as the financial capital of the world and generates so many jobs and so much revenue for New York."

Assembly Speaker Sheldon Silver said, "This is exactly the kind of agreement I envisioned when I called for and negotiated a Marshall Plan for Lower Manhattan earlier this summer. I am certain that this announcement by Goldman Sachs will provide a much-needed boost to the overall rebuilding efforts of Lower Manhattan. Not only will it return the thousands of shoppers and diners who have been missing from the Lower Manhattan economy for almost four years, I am confident that today's announcement will pave the way for future agreements that will ultimately lead to a successful rebuilding of our remarkable community. I applaud the efforts of all those who helped make this important agreement possible, in particular Chairman Henry Paulson and the entire Goldman Sachs organization for their commitment to Lower Manhattan."

The building is being designed to achieve LEED Gold certification[i] by using the latest green building technologies. It is expected to be one of the largest commercial office buildings in the country to achieve such a high rating. The high-tech building is intended to serve as Goldman Sachs' world headquarters, housing its investment banking, investment management, and trading operations.

"Goldman Sachs is proud to be a member of this vibrant community and we are looking forward to maintaining our headquarters in Lower Manhattan, where we've been located for more than 135 years," said Henry M. Paulson, Jr., Chairman and Chief Executive Officer of The Goldman Sachs Group, Inc. "We are grateful to the Governor and the Mayor and their respective staffs for having addressed our concerns, and would also like to thank Speaker Sheldon Silver and Senator Joseph Bruno for the important roles they played in achieving a positive outcome. We believe that, with a coordinated plan for Downtown, the area will continue to grow and prosper and we look forward to playing an active part in its continued success."

Designed by Henry N. Cobb of Pei Cobb Freed & Partners, the new Goldman Sachs headquarters building will rise to a height of approximately 740 feet. Six floors above the ground floor will contain trading facilities. The middle portion of the building will include amenities and meeting facilities while tower floors will house office functions. Located directly across Vesey Street from the World Financial Center and just north of the World Trade Center site across West Street, the building's presence is characterized by a play between angular geometries along West Street and Murray Street—relating to the two dominant planning grids of Lower Manhattan—and a sweeping, curved, west façade facing the Hudson River. The building's stainless steel and glass skin, coupled with three major setbacks as the building rises, will animate the building's form while reinforcing its relationship to its surroundings.

The spaces surrounding the building will be an important contribution to the evolving open space network of Lower Manhattan. The existing mid-block pedestrian walkway between the Goldman Sachs headquarters site and the Embassy Suites Hotel/Regal Cinemas is to be redeveloped, covered with a partial canopy and lined with retail spaces to become an important gathering place and pedestrian link between the World Financial Center and the North Residential neighborhood of Battery Park City. A generous landscape along West Street featuring a full-block canopy of trees, will incorporate Hudson River Park with its bicycle path and walkway extending south to the Battery and north to 59th Street.

In addition to ground rent, Goldman Sachs is expected to pay approximately $150 million in civic facilities fees to the Battery Park City Authority during the term of the lease. In addition, as a contribution to the new neighborhood, Goldman Sachs has pledged $3.5 million to the New York Public Library branch planned for a site at Murray Street and North End Avenue, and an additional $1 million to be used for a community center in a new residential development in Battery Park City.

Governor Pataki's Chief of Staff John P. Cahill said, "Goldman Sachs' new commitment to Lower Manhattan is a significant expression of renewed confidence and another indication of the collaborative spirit that is driving Downtown's revitalization. Today's announcement is the result of another successful partnership between the State and the City under the leadership of Governor Pataki and Mayor Bloomberg. Goldman Sachs' world headquarters, directly across the street from the World Trade Center site, Verizon's World Headquarters and global giants American Express and Merrill Lynch reinforces Lower Manhattan's position as the financial capital of the world. Goldman Sachs' over 9,000 employees will also further transform Lower Manhattan into a mixed-use community, vibrant day and night, by offering critical support to our small businesses, restaurants, shops, and entertainment establishments."

Deputy Mayor Daniel L. Doctoroff said, "This fantastic project clearly demonstrates that when the federal, state and city governments work with leaders of New York City's financial community we can make great strides toward full economic recovery. I thank the people of Goldman Sachs for their renewed and reinforced confidence in New York City and Lower Manhattan as the heart of the international financial community."

Empire State Development Chairman Charles A. Gargano said, "This announcement, which could not have been realized without the leadership of Governor Pataki and Mayor Bloomberg, marks another critical milestone in the rebuilding and revitalization of Lower Manhattan. Goldman Sachs' commitment is further proof that Downtown is the place to do business and secures its position as the financial capital of the world. I congratulate Goldman Sachs on its dedication to preserving jobs Downtown and its loyalty to our great city."

James F. Gill, Chairman of the Battery Park City Authority said, "It is our great pleasure to welcome Goldman Sachs into the Battery Park City family. In keeping with Governor Pataki's vision of creating harmony between the built and natural environment, Goldman Sachs will be adding two million square feet of LEED Gold certified commercial construction to Battery Park City's existing two million square feet of LEED Gold certified residential construction - making Lower Manhattan the world leader with the highest concentration of sustainable construction per square foot. I applaud Governor Pataki and Mayor Bloomberg for their leadership and guidance that resulted in keeping Goldman Sachs and their employees Downtown where they belong."

William C. Rudin, Chairman of the Association for a Better New York said, "ABNY applauds both Governor Pataki and Mayor Bloomberg for their unrelenting campaign to ensure that Goldman Sachs, one of the premier investment firms in the world, remains in Lower Manhattan. We also thank Goldman Sachs Chairman and CEO Hank Paulson for his dedicated leadership in committing to the future of downtown. The construction of a new world-class headquarters is essential for the continued revitalization of Lower Manhattan, helping to attract even more new commercial tenants and to retain current businesses. This deal only further strengthens the downtown's status as the financial capital of the world."

Robert Douglass, Chairman of the Alliance for Downtown New York said, "We are elated that Goldman Sachs will remain Downtown. They are Downtown's largest employer and a primary reason that Lower Manhattan remains a premier business district. Today's announcement is a tremendous step forward in the effort to revitalize the Lower Manhattan business community."

Julie Menin, Chair of Community Board 1 said, "The Community Board is extremely pleased that Goldman Sachs has decided to build their headquarters building here in Lower Manhattan. Goldman has long been one of the largest employers in the Financial District and we hope that their commitment to remain in Lower Manhattan will serve as a catalyst for additional commercial tenants to relocate here and be part of the continued revitalization of our district."

The project will be partially financed with up to $1.65 billion in Liberty Bonds which were made available by the Federal Government after September 11th, 2001 to spur construction projects Downtown. Goldman Sachs is also eligible for up to $25 million in Job Creation and Retention Program funds. Under the Lower Manhattan incentives legislation and the ground lease with Battery Park City Authority, a sales tax exemption on construction costs, initial fit-out expenses and equipment purchases is also available.



Joanna Rose (Governor Pataki) (212)681-4640
Edward Skyler/ Jordan Barowitz (Mayor Bloomberg) (212)788-2958
Andrea Raphael (Goldman Sachs) (212)902-5400

[i] The LEED (Leadership in Energy and Environmental Design) Green Building Rating System® is a voluntary, consensus-based national standard developed by the U.S. Green Building Council for the design and construction of high-performance, sustainable buildings. The LEED Building Rating System takes into account the sustainability of a project's site, its water efficiency, energy efficiency and impacts on the atmosphere, material resources, indoor environmental quality, and innovation in its design.