State Sen. Don White yesterday accused The Bank of New York Mellon of "total disregard and indifference" for halting a $70 million data center expansion in Armstrong County.
The New York financial services firm disclosed its change of plans on Tuesday, saying it had decided to keep open another processing center in New Jersey instead. The company's "continued global business growth" and the rising costs of construction and specialized equipment also were cited as reasons for the switch.
"This decision," Mr. White, R-Indiana, said in a letter yesterday to Bank of New York Mellon Chief Executive Officer Robert Kelly, "has broken the trust of local elected and economic development leaders and only serves to enhance the skepticism with which many working-class communities view corporate America."
Mr. White said he worked with local officials on a property tax abatement package for The Bank of New York Mellon that won approval from South Buffalo Township, Freeport Area School District and Armstrong County. The request for so-called Local Economic Revitalization Tax Assistance "was approved with the expectation [The Bank of New York Mellon] would honor its obligation to the community," Mr. White said in the letter.
The abatement no longer applies now that the company has decided not to pursue its expansion at the Northpointe Industrial Park.
"I hope this unfortunate situation is not indicative of how [The Bank of New York Mellon] will fulfill other significant commitments made to southwestern Pennsylvania," Mr. White said.
The Bank of New York Mellon promised last June to bring 200 new jobs to Armstrong County as part of the expansion. Yesterday, when asked about Mr. White's letter, company spokesman Jeep Bryant said via e-mail that "the change announced this week does not impact our plans to bring an additional 200 technology-related jobs to the Pittsburgh area. Instead of locating the majority of the positions at Northpointe, the majority of them will be in our downtown Pittsburgh offices."
When The Bank of New York agreed in December 2006 to purchase Mellon Financial Corp. and place the combined company in New York, it pledged to create 1,000 to 2,000 local jobs in three to five years. It also predicted that fewer than 10 percent of 6,200 local positions would be cut through dismissals, not filling open positions or normal job attrition.
The company has said little about local job cuts since December 2006, but Mr. Bryant said yesterday that "we continue to make progress toward our commitment of 1,000 to 2,000 new jobs ... We already have announced plans for 620 new jobs and we anticipate making another announcement before the end of May regarding additional new jobs coming to Pittsburgh. Also, since January 1, 2007, our Pittsburgh area net headcount has increased by 482."