WPCNR THE DEVELOPER NEWS. From the Office of Connecticut Governor Jodi M. Rell.Associated Press Reports November 19, 2009 (EDITED): Connecticut Governor M. Jodi Rell announced Wednesday that Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) will relocate its global corporate headquarters from White Plains to Stamford, by the year 2012, moving millions of dollars in investments and 800 jobs from 1111 Westchester Avenue in White Plains to Connecticut.
“For months I have worked with Starwood executives and my economic development team to make this deal – and the jobs and investments it brings – a reality for the people of our state,” Governor Rell said. “I am thrilled to see a company of Starwood’s stature make the business decision to move here and invest here. It is a triumph for Connecticut – and it speaks volumes about what our state has to offer businesses."
Starwood has headquartered on White Plains Miracle Mile since 2001, and takes 800 jobs out of the Westchester economy. The Governor cited major advantages Connecticut gives companies over New York State in announcing the shocker of the move.
In an announcement, Reader's Digest of Pleasantville, New York, in a news release said it would move 525 of its employees from its now-rented Chappaqua Headquarters to White Plains in the downtown.
“This project exemplifies the economic development philosophies I have championed,” the Governor said. “Not only does it add to the state’s employment base, it is a responsible and environmentally sensitive use of an existing structure in the heart of a downtown district with access to Interstate 95 and the Metro-North commuter rail line. New jobs, open space preservation, transit-oriented development, ‘green buildings’ – all of these goals are embodied in this one project.”
The company’s move from White Plains, New York, to Stamford’s waterfront Harbor Point development is planned for January 2012. Harbor Point is already home to major employers such as Pitney Bowes and Deloitte & Touche. The company’s new headquarters will be certified under the “LEED” (Leadership in Energy and Environmental Design) standards program.
Starwood Hotels & Resorts is one of the world’s leading hotel and leisure companies, with 982 hotels in nearly 100 countries and nine renowned brands including Sheraton, Westin, St. Regis and W Hotels. Plans call for Starwood to partner with the landlord to invest $40 million into renovating the existing facility.
The company, which plans to occupy 250,000 square feet of space by January 2012, will create more than 800 full-time Connecticut-based positions within two years. Newmark Knight Frank’s Neal Golden, Ross Perlman and John Goodkind represented Starwood Hotels in the transaction.
“After an extensive search for new office space for our worldwide headquarters, it became clear that this particular space in Stamford was an ideal choice,” said Frits van Paasschen, President and CEO of Starwood. “Not only did the State of Connecticut provide meaningful incentives that translate to a savings of 20 percent per year in rent, but we will also have the opportunity to design office space that reflects Starwood’s leadership in global hospitality, design and brand-building, as well as our commitment to the environment and our communities.”
The Department of Economic and Community Development will assist the project with a $9.5 million loan and up to $75 million in Urban and Industrial Site Reinvestment Tax Credits. In addition, Starwood expects to receive up to $5 million in sales tax exemptions on building materials through the Connecticut Development Authority. The exemption is subject to approval by CDA’s Board of Directors.
“Starwood’s decision to relocate its headquarters to Harbor Point validates our decision to invest in the redevelopment of Stamford’s South End as an ideal ‘smart-growth’ community,” said Carl R. Kuehner, President and CEO of Building and Land Technology. “These kinds of developments have been at the top of Governor Rell’s agenda and we very much appreciate the efforts of state and local officials who worked with us to make this happen.”
Mayor Dannel Malloy of Stamford told The Stamford Advocate, Stamford had been working on convincing Starwood to move for three and a half years. He indicated more major tenant signings would be forthcoming for the Harborpoint development, promoting Stamford's "work force, strong tax base, transportation system. Malloy saluted Stamford's Economic Development Director, Michael Freimuth, for his work in luring the hotel giant.
