Development Plans for Philadelphia Stock Exchange

  

PHILADELPHIA (AP) - June 9, 2006 -- - The Philadelphia Stock Exchange says it hopes to build a new $25 million to $30 million computing center at the old Navy Yard.

Exchange officials say they plan to keep their downtown offices but could shift 60 positions - 15 percent of the work force of 395 - to a new building on land next to the Navy Corporate Center.

Officials will make the case that because the land is in a Keystone Opportunity Zone, the exchange should not be taxed on revenue from trades cleared on those computers, said Meyer "Sandy" Frucher, the bourse's chairman and chief executive officer.

Frucher, who declined to say how much tax savings were anticipated, said he was negotiating with developer Liberty Property Trust, which declined comment. He said if not for Opportunity Zone, the technology hub would be built outside the city.

"The economics argued for us to build at the Navy Yard," Frucher said. "As our business has grown ... we can no longer function without a backup business-recovery center."

Kevin Ortiz, spokesman for the state Department of Community and Economic Development, said the department was working with the exchange on the project.

John Grady of the Philadelphia Industrial Development Corp., which is responsible for converting the former base to civilian use, said it was important "to retain the stock exchange in Philadelphia, and to allow it to grow and thrive here."

Keystone Opportunity Zones exempt businesses from the city business privilege tax, the net-profit tax, and sometimes from the state's personal income tax. Participation requires the approval of the city and state.

--- Information from: The Philadelphia Inquirer,

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