New York City Halts $9.6 Million Incentive Package for Aetna Headquarters
January 10 2018 - 6:55PM
Dow Jones News
By Joseph De Avila and Keiko Morris
New York City is shelving a $9.6 million incentive package
offered to Aetna Inc. while the insurer reassesses whether to move
its headquarters to the city.
The company said in June it would move its headquarters and 250
jobs from Hartford, Conn. to New York City. Those plans, however,
were put on hold following CVS Health Corp.'s December announcement
that it would buy Aetna for $69 billion. Aetna said at the time the
merger was announced that all of its locations will be evaluated as
part of its integration with CVS.
An Aetna spokesman said Wednesday that evaluation is
ongoing.
The city said the uncertainty was the reason it is not
proceeding with a formal approvals to finalize the $9.6 million
incentive package announced last year.
"We are unable to move forward with the proposed assistance
package at this time," said a spokesman for the city's Economic
Development Corp.
Aetna had planned to move into a 170,000-square-foot Chelsea
building developed by Vornado Realty Trust and Aurora Capital
Associates.
A spokeswoman for Empire State Development, New York state's
economic development arm, said its offer of $24 million in
performance-based tax credits is still on the table. The company
would have to meet and maintain job count and investment
requirements before the state would pay out the credits, the
spokeswoman said.
The news was earlier reported by Crain's New York Business.
Write to Joseph De Avila at joseph.deavila@wsj.com and Keiko
Morris at Keiko.Morris@wsj.com
(END) Dow Jones Newswires
January 10, 2018 19:40 ET (00:40 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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