In June 2006, Royal Bank of Scotland (RBS) broke ground for a new facility in Stamford, Connecticut. The new facility will expand RBS’s presence in Connecticut, housing the firm’s RBS Greenwich Capital office as well as its Manhattan corporate banking operation. By the time construction is completed in late 2008 or early 2009, the facility will contain 500,000 square feet, including a 95,000 square-foot trading floor. The trading floor will accommodate 1,400 traders, making it the second largest in the world.
The project represents an investment of $400 million. It is expected to retain 700 existing jobs and create 1,150 new jobs in Connecticut in the next five years. The project’s other benefits include nearly $196 million in net new state tax revenue and $44 million in net new local revenue generated over a ten-year period. The project will also indirectly create employment opportunities in the state for 2,488 workers. Annual real disposable income is estimated to increase by $71.8 million directly and $101.2 million indirectly.
“Our state, and Fairfield County in particular, is a hub for some of the world’s leading financial institutions,” said Connecticut Governor M. Jodi Rell. “To have a company of RBS’s prominence … further demonstrates that we are making the right investments in our industries, workers, and education, and transportation systems.”
Direct government incentives to make help make the project a reality came primarily from two sources. The Connecticut Department of Economic and Community Development (DECD) pledged up to $100 million in Urban and Industrial Sites Reinvestment Tax Credits to support the project. In addition, the Connecticut Development Authority is providing a $9 million sales and use tax exemption on construction materials over three years.
In addition to benefiting from these incentives, and finding a site that meets its expansion needs, RBS has found a location that satisfies the transportation needs of its commuting employers. RBS Greenwich Capital also saw the benefit of retaining its highly skilled workforce in Connecticut.