GOVERNOR AND MAYOR OPEN NEW HIP HEADQUARTERS IN LOWER MANHATTAN HIP
Cuts Ribbon for Relocated Headquarters, Relocates 2,000 Employees One of Largest
Corporate Relocations to Lower Manhattan Since 9/11
Governor George E. Pataki and Mayor Michael R. Bloomberg today joined the
Health Insurance Plan of Greater New York ("HIP") for the opening of their new
corporate headquarters in Lower Manhattan. This relocation represents one of
the largest corporate relocations to Lower Manhattan following September 11th,
2001. HIP is relocating 2,000 jobs to Water Street and will create up to 500
new jobs at its new offices.
"Today's relocation by New York's largest HMO is another significant step in
our efforts to revitalize Lower Manhattan," said Governor Pataki.
"Immediately following September 11th, we helped 14,000 hard hit small
businesses with more than 140,000 workers. At the same time, we've used our
financing programs to help attract and retain more than 100,000 jobs, like the
jobs here at HIP. Thanks to our joint efforts with Mayor Bloomberg, we are
strengthening Lower Manhattan's economy, partnering with top corporations like
HIP to invest and bring jobs here. I want to thank HIP for its commitment to
New York and its decision to relocate its corporate headquarters in the center
of the world's financial district."
"HIP's decision to move to Lower Manhattan sends a strong signal to the entire
New York City business community that downtown's recovery is well underway,"
said Mayor Bloomberg. "Since it was established after September 11, the Job
Creation and Retention Program has played a pivotal role in keeping or bringing
75 companies to Lower Manhattan, and I look forward to many similar
announcements that will undoubtedly be made in the near future. I want to thank
HIP for its support of New York City and its enormous contribution to the
recovery of Lower Manhattan."
Anthony L. Watson, Chairman and CEO of HIP, said, "When the time came for HIP
to move its headquarters and consolidate operations, we were offered many
opportunities in other locations, but HIP was not about to move out of this
city. HIP is synonymous with New York. We were founded here 57 years ago, and
have been serving New Yorkers continuously since then. Our hearts, our spirit
and our energy are here. We wanted to bring all of that and more to a place
that has meaning. Downtown Manhattan is that place. HIP is grateful to the City
and the State for its support."
Empire State Development Corporation Chairman Charles A. Gargano said, "Thanks
to Governor Pataki's leadership, New York is experiencing a remarkable
commitment from the business community. The State and City's efforts have
brought tens of thousands of new and existing jobs back to Lower Manhattan. In
the past three years, we have made great strides in our recovery efforts for
downtown, but our work and progress continues."
New York City Economic Development Corporation President Andrew M. Alper said,
"This is great news for the business community of Lower Manhattan. By treating
businesses as valued clients, we can help companies make important decisions
about where to locate their operations. We're elated with HIP's decision to
bring jobs and investment to Lower Manhattan."
HIP, founded in 1947, is a private, not-for-profit managed care company. It is
the largest HMO in the New York metro market with more than a million members
and more than 2,800 employees. The company provides medical care through the
traditional medical groups and through an extensive provider network of
approximately 22,000 providers in more than 33,000 locations offering a variety
HIP received $10,882,500 in Job Creation and Retention Program (JCRP) funds and
is eligible to apply to Empire State Development for an additional $1.2 million
Since September 11th, 2001, Empire State Development (ESD) and the New York
City Economic Development Corporation (EDC) have disbursed almost $1 billion to
assist in the economic recovery of businesses, large and small. Through
initiatives such as the Job Creation and Retention Program (JCRP) and Small
Firm Retention and Attraction Grants (SFARG), ESD and EDC continue to assist
companies with returning to Lower Manhattan.
New York has used a two pronged approach to help businesses. Both JCRP, which
has provided funds to 75 large firms, and SFARG, which has assisted more than
1,800 small companies, have helped to create and retain more than 105,000 jobs
in Lower Manhattan since September 11, with an investment of nearly $400
JCRP --jointly administered by EDC and ESDC - is designed to stabilize the job
base in Lower Manhattan, restore the vibrancy of the downtown community,
encourage the creation of new jobs, attract new businesses and diversify the
downtown economy. The program targets large companies because they account for
more than half of all the private sector jobs in Lower Manhattan, which in turn
support thousands of smaller-sized businesses.
The grant terms of JCRP are discretionary but require the commitment of the
companies to a minimum seven-year stay in Lower Manhattan. The grant
determination is based on criteria such as proximity to the World Trade Center
site, economic and fiscal impact, early commitment, number of jobs retained,
number of jobs created, and risk of relocation.