City Approves Subsidy Deal Over Union Objections

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Reuters never used most of a $26 million set of Giuliani administration tax breaks, in large part because it never met its goal of maintaining 1,800 workers in the city.

Photo by: bgilliard

Reuters never used most of a $26 million set of Giuliani administration tax breaks, in large part because it never met its goal of maintaining 1,800 workers in the city.

The city’s Industrial Development Agency on Tuesday approved $21 million in subsidies to Thomson Reuters, the news and information company, despite objections from a union that has complained to the National Labor Relations Board about the company’s practices.

As Neil deMause reported last week, Reuters received approval for $26 million in tax breaks from the Giuliani Administration, but never used most of them, in large part because it never met its goal of maintaining 1,800 workers in the city.

The new offering would essentially tear up Thomson Reuters’ old deal and set out a new job goal of 3,744 workers; if it falls short, it would forfeit some of the cash, and if it exceeds that threshold it would be eligible for bonus credits.

A spokesman for the IDA says the final subsidy amount was $20.77 million, slightly smaller than the $24 million original proposal.

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