Projects will Create and Retain 960 Permanent and
Construction Jobs and Spur $65.4 Million in Private Investment in
Queens and Brooklyn
NYC Industrial Development Agency Provides Financial
Assistance for Medical Equipment Manufacturer
Enabling Projects to Move Forward is Part of the
Administration’s Five Borough Economic Opportunity Plan
The Board of the New York City Capital Resource Corporation (NYCCRC) today gave preliminary approval for the allocation of Recovery Zone Facility Bonds for Albee Development LLC, Arverne by the Sea LLC and Benjamin Beechwood Retail LLC in connection with retail projects located in Downtown Brooklyn and Far Rockaway, Queens. Albee Development plans to use $20 million in tax exempt bond financing to spur construction of its City Point development project. City Point is a 1.6 million square-foot phased mixed-use development that is envisioned to include up to 184,000 square feet of local and national retail and 120 units of affordable residential development, and will create 328 construction jobs and 208 permanent jobs in the first phase. Arverne by the Sea and Benjamin Beechwood propose to use $15 million in Recovery Bonds to finance a 55,000-square-foot supermarket and a 21,500-square-foot retail plaza. These three projects represent more than $65 million in immediate private investment that will create approximately 960 construction and permanent jobs.
“These are exactly the types of projects the American Recovery and Reinvestment Act is intended to assist,” said NYCCRC Chairman Seth W. Pinsky. “In each case, important large-scale projects, stalled by the current economic downturn and lack of conventional financing, will be immediately jump-started to create much needed construction jobs and revenue for the City. The cost to the City of these bonds is a fraction of the income the City will realize from the construction and operation of these projects. For about $500,000 in forgone income tax revenue, the City will gain over $22 million in on-going revenue.”
The three projects these bonds will help to finance will also bring much needed products and services to underserved neighborhoods. The supermarket component of the Arverne by the Sea project will be the only supermarket in the area within a mile in each direction. The retail plaza will include a bank, a restaurant, a dental office, a dry cleaner, and other service providers. Together, they will also provide about 300 parking spaces. All three of these projects have indicated that they have all the required environmental and land use approvals and are on schedule to meet all Recovery Zone Bond Program timeframes.
Each of these projects are components of larger, complex developments that have been unable to acquire conventional financing. Phase 1A of the City Point development will commence in March 2010 and will be the first portion of the eventual 184,000 square-foot retail development. It will be completed March 2012. Phase 1B fills out the retail complex, will include at least 120 units of affordable housing, and will begin construction by March 2011, to be completed by March 2014. The financing approved today will serve to advance the entire 1.6-million-square-foot project which will eventually encompass retail space for local and national retailers, affordable as well as market rate housing, and possibly commercial office space.
The Arverne by the Sea development project is part of the Arverne Urban Renewal Plan that has helped to stabilize the area through the addition of 800 completed housing units. It is a public/private partnership sponsored by the New York City Department of Housing Preservation and Development. The development will ultimately contain about 2,300 middle income residential units, of which approximately 15 percent will be designated affordable, as well as 270,000 square feet of commercial and retail space, a new 600+ seat school, and a 30,000-square-foot YMCA.
The City has nearly $90 million available in Recovery Bond Financing. We will continue to consider the other applications we received and are accepting applications for other projects until October 12, 2009.
In addition, the Board of the New York City Industrial Development Agency today authorized an incentive package for A & L Scientific Corporation totaling up to $823,500 in real estate and sales tax benefits. A & L Scientific, a fabricator and servicer of medical laboratory equipment, proposes to invest $1.85 million to acquire and renovate an approximately 12,000-square-foot industrial facility in Glendale, Queens. Currently located in Crown Heights, Brooklyn, the company will expand its operations and increase its inventory and office space at the new location. It will also enable A & L to add about three new employees to its current staff of 12.
“This transaction by the NYCIDA Board meets a number of Mayor Bloomberg’s criteria for reinforcing specific business sectors to help diversify the City’s economy,” said NYCIDA Executive Director Maureen Babis. “It’s a small, family-owned business; almost half the City’s workforce is employed by small business. It is also a manufacturer and important to the diverse make up of our industrial sector, and it is a bioscience company, a segment that has been identified for excellent growth potential within New York City. I am pleased that NYCIDA is able to help this vital small business to stay and grow in the City.”
About NYCEDC
New York City Economic Development Corporation is the City’s primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC’s mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City’s competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City’s many opportunities.
About NYCCRC
The New York City Capital Resource Corporation (NYCCRC) is a local development corporation administered by New York City Economic Development Corporation. The mission of NYCCRC is to encourage community and economic development and job creation and retention throughout New York City by providing lower-cost financing programs to qualified not-for-profit institutions and manufacturing, industrial, and other businesses for their eligible capital projects.
About NYCIDA
The New York City Industrial Development Agency (NYCIDA) is administered by the New York City Economic Development Corporation and provides financing assistance to businesses, including small industrial and manufacturing companies and not-for-profit organizations. NYCIDA is a conduit agency that issues tax-exempt industrial revenue bonds to assist eligible commercial, industrial, not-for-profit and other qualified entities to finance expansion opportunities. NYCIDA also offers qualified companies abatements on sales, real estate and mortgage taxes.
About the Five Borough Economic Opportunity Plan
The Five Borough Economic Opportunity Plan is a comprehensive strategy to bring New York City through the current economic downturn as fast as possible. It focuses on three major areas: creating jobs for New Yorkers today, implementing a long-term vision for growing the city's economy, and building affordable, attractive neighborhoods in every borough. Taken together, the initiatives that the City has launched to achieve these goals will generate thousands of jobs and put New York City on a path to economic recovery and growth.
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