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NYSE Abandons Downtown Plan

NEW YORK CITY-Richard Grasso officially slams the brakes on plans to build a $1.6-billion Downtown trading floor and office building. The new plan is to build a second trading floor somewhere outside of Lower Manhattan.

By Glen Thompson | Updated on September 05, 2002

NEW YORK CITY-A week after revealing that a search is under way for a spot to build a second trading floor for the New York Stock Exchange, the exchange’s chairman, Richard Grasso, yesterday revealed that negotiations for a new Downtown facility are officially kaput.

An NYSE spokesman confirmed the decision for GlobeSt.com, saying the impact of Sept. 11 had forced the city to back down on its original deal with the exchange and that plans for a new Downtown trading floor have been scrapped. The arrangement had included a $1 billion subsidy for a trading floor topped by a 900-foot office tower at 23 Wall St., across the street from the NYSE’s current headquarters. Financial constraints and the current lack of enthusiasm for tall office properties scuttled the $1.6-billion deal, the spokesman said.

That deal received considerable criticism from advocacy groups across the city since it first came to light. Opponents said a lack of public input and too much closed-door negotiating made the process suspect. In addition, many questioned the need for a new trading floor and protested the amount of the subsidy. Among the plan’s most vocal critics is Bettina Damiani, project director for watchdog group Good Jobs New York. “If, indeed, the deal has fallen apart because the Bloomberg administration has not budged on their last offer, then kudos to the mayor,” she tells GlobeSt.com.

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