When it comes to huge city tax deals for corporations, Mayor Giuliani gives first and asks questions later–if ever, according to a new report. Firms who have signed lucrative retention deals over the last three years face little or no sanction when they lay off workers or fail to create new jobs, according State Senator Franz Leichter, an Upper West Side Democrat.
At least nine companies–including the first six that made deals with Giuliani–axed jobs after signing deals. First in line for a 1994 tax break, Republic National Bank agreed to keep 2,400 jobs and create 200 more for $6.4 million in tax breaks. Instead, a year later the bank dropped over 400 employees. The tax break still holds nonetheless.
So far, the city has 32 corporations on the rolls, receiving about $768 million in benefits. Most of this money has been poured into downsizing industries like insurance, banking and television. For a copy of the report, call 212-397-5913.