GlobeSt.com UPDATE: State Changes Downtown Transportation Plan

NEW YORK CITY-The state will no longer construct a traffic tunnel on West Street that would have veered traffic in front of a site Goldman Sachs has earmarked for its new base of operations. Last week the financial powerhouse was reportedly reconsidering plans for a two-million-sf headquarters on Site 26—the last commercial parcel in Battery Park City. Goldman Sachs did not respond when reached about the change in plans. If it goes forward, the project, which is projected to cost $1.8 billion to realize, is expected to be completed in 2009 or 2010. It is the first development of headquarters space in Lower Manhattan in 16 years. Goldman Sachs has 425,000 sf at One New York Plaza through September, 2009 and has some operations in Jersey City and in other financial district locations.

Also, the company has a bevy of incentives ready and waiting including an already approved is $1 billion in Liberty Bond financing to go toward development costs. The Battery Park City Authority is expected to provide for up to $13.4 million in sales tax exemptions. The company will also be eligible for Con Edison energy discounts worth an estimated $10.3 million and can apply for up to $25 million in Job Creation and Retention Program grant funds. Goldman’s plan was expected to keep more than 9,000 jobs in the city and add thousands more by 2019.