August 12, 2005

After months of looking elsewhere for office space, Goldman Sachs has decided to build its $2 billion headquarters at Ground Zero after all, according to a report yesterday in The New York Times.

On April 4 the financial firm had halted the planned construction of its 40-story glass building, located just northwest of the 1,776-foot Freedom Tower. The company had been worried about a now-scrapped plan to submerge West street near the building’s entry. Goldman had also expressed concerns about its financial incentives and the state of other projects at Ground Zero. The new building, which will consolidate the firm’s many area offices and give the company much more trading space, sits on the last vacant commercial parcel in Battery Park City. The tower is being designed by Pei Cobb Freed architects.

Goldman officials could not be reached for comment, but according to the Times the firm had been enticed back to the area with a slew of financial incentives, including at least $150 million in new city and tax credits, as well as $600 milion of new Liberty Bonds to add to $1 billion in already-issued bonds. The move gives Lower Manhattan, whose viability as an office center has been facing recent scrutiny, a boost. But some have said the price is too high, pointing to what they call exorbitant tax breaks for the company.

Sam Lubell