Westchester County grants tax breaks for Morgan Stanley renovation in Harrison

Financial services firm Morgan Stanley secured backing last week from the Westchester County Industrial Development Authority for a $200 million renovation project in Harrison.

Board members of the county IDA voted to grant a sales tax exemption ranging from $6.5 million to $13 million for a project without finalized costs at 2000 Westchester Ave. 

Morgan Stanley, which took over the former Texaco headquarters on Westchester Avenue in 2002, is also seeking a property tax incentive for the 750,000-square-foot office complex from the Town of Harrison.

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The financial services firm aims to consolidate part of its operations at the office complex in Harrison.

“If the project does not proceed as currently envisioned, there is a possibility that existing jobs currently located at the Westchester campus could be relocated out of New York state and the planned investment on the amenities and infrastructure occurring elsewhere,” said Michael Grella, an economic development consultant, in a letter to the Westchester IDA in July.

The Westchester IDA did not share the application for tax incentives requested by Morgan Stanley. But an executive summary of the project by Grella said Morgan Stanley could create up to 1,100 new jobs.

Created in 1976, the IDA promotes and encourages economic development in Westchester by helping create or retain jobs. A public benefit corporation, the agency can issue low-cost and tax-exempt financing for projects that meet state and federal guidelines.

Mario Marroquin covers real estate and economic development. Click here to see his latest stories. He can be reached at mmarroquin@gannett.com or @mars3vega