The Depository Trust & Clearing Corporation (DTCC) today announced plans to relocate a significant portion of the DTCC staff based in the Northeast US to a new location in New Jersey when its current lease expires at the end of 2012.
Under the plan, DTCC will relocate about 1,600 staff members to Newport Office Centre in Jersey City, on the Hudson River waterfront across from Manhattan, with employees expected to move in early 2013.
“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 Donahue, DTCC chairman and CEO. “New Jersey offers us a favourable 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 specialise 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.”
Donahue credited the aggressive outreach and support to Governor Jon Corzine and his economic development team, including chief of the Office of Economic Growth Jerry Zaro and New Jersey Economic Development Authority (EDA) CEO Caren Franzini as the company evaluated its relocation strategy. He also acknowledged the hard work and support of Jersey City Mayor Jerramiah Healy and Hudson County executive Thomas DeGise.
“Governor Corzine and the New Jersey Economic Development Authority actively pursued DTCC and were very responsive to our needs and concerns throughout this process,” Donahue said. “The Governor personally called me several times to discuss the economic and business advantages of relocating to New Jersey and made a persuasive case on the benefits of this move. The process, which began last year, considered a wide range of variables. We looked at numerous options, but in the end we concluded that relocating these operations to New Jersey would allow us to manage our cost structure and position the company for continued business expansion in the years ahead.”
The decision follows more than one year of work with real estate professionals and outside consultants, and involved extensive discussions with New Jersey state officials, New York State officials and officials from the City of New York. DTCC used a broad set of criteria to make the decision, including the competitive costs for a long-term lease, economic incentives, availability of infrastructure support (telecomm, transportation), accessibility to DTCC headquarters, the ease of commuting for our employees, ability to retain and recruit highly-skilled staff to the location and other quality of life issues for DTCC employees.
While the bulk of DTCC’s Northeast-based staff will make the move to New Jersey, DTCC will retain a headquarters location and approximately 700 employees in lower Manhattan, as part of its ongoing and long-standing commitment to New York City and State.
“DTCC has a long history of working with New York and had productive conversations with the Mayor’s Office about our plans for the end of this lease,” Donahue said. “In recognition of the fact that New York remains the principal financial center for the US, we are delighted to be able to maintain a significant presence in lower Manhattan. With support from the City of New York, we are continuing to negotiate for space in lower Manhattan to accommodate our corporate headquarters and a number of new growth businesses. Senator Schumer has been particularly active in these discussions and played an important role in our decision to keep our headquarters and senior management positions in New York.”
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