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In an election season event that reached far into the future, Gov. Jon Corzine joined officers of the Manhattan-based Depository Trust & Clearing Corp. Tuesday to announce the company is moving its business operation and 1,600 jobs across the Hudson River to Jersey City – in 2013.
Under the terms of the long-term lease, Depository Trust will relocate to the Newport Office Center on the city's Gold Coast waterfront with employees expected to begin work there in early 2013. Depository Trust will occupy a total of 415,000 square feet of space.
"After lengthy deliberations with officials in New York and New Jersey, we have concluded that a move to New Jersey is the right decision," said Donald F. Donahue, Depository Trust chairman and CEO.
"New Jersey offers us a favorable business climate, convenient access to our customers in the greater metropolitan area and also allows us to disperse our staff more widely for business continuity purposes. New Jersey will benefit from an infusion of 1,600 highly skilled professionals who specialize in financial services, information technology and operations. We are also excited to tap into New Jersey's skilled workforce as our business grows in the future.""We are thrilled that DTCC (Depository Trust) has recognized the advantages to doing business in our state, and we applaud its decision to bring its people and operations to New Jersey," Corzine said in Jersey City. "We have been working very closely with the firm to bring these professional, well paid jobs to New Jersey, and today, we have an agreement in place."
Donahue credited support from Corzine and the state's economic development officials.
Officials said a factor in the company's decision, include what it sees as the competitive costs for a long-term lease, availability of infrastructure support, accessibility to Depository Trust Manhattan headquarters and the ability to recruit highly-skilled staff.
Officials said the company will also benefit from economic incentives offered by the state Economic Development Authority, including the Business Employment Incentive Program (BEIP) and the newly authorized Economic Redevelopment and Growth grant program, which Corzine signed into law in July as part of his economic recovery effort.
The grants will support Depository Trust's relocation of a portion of its corporate staff functions in finance, legal, regulatory, human resources, specialized IT and product development from its Manhattan headquarters to Jersey City.
Depository Trust, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, the company is a processor of mutual funds and insurance transactions, linking funds and carriers with financial firms and third parties that market these products.
Depository Trust's depository provides custody and asset servicing for more than 3.5 million securities issues from the United States and 117 other countries and territories, valued at $27.6 trillion. Last year, Depository Trust settled more than $1.88 quadrillion in securities transactions. The company has operating facilities in multiple locations in the United States and overseas.
In September, the Corzine administration announced that since 2006, the Economic Development Authority had finalized over $2.4 billion in financing assistance, business incentives and tax credits, and supported nearly 1,330 projects across the state.
The assistance is expected to leverage more than $6 billion in total public and private investment and lead to the creation of more jobs. Since that announcement, the EDA has finalized an additional 9 projects, including Depository Trust.
-- TOM HESTER SR., NEWJERSEYNEWSROOM.COM
