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New York City, March 8, 2005 –New York City Industrial Development Agency (IDA) today approved financing assistance for four not-for-profit organizations, including an independent college and a special education elementary school. The IDA also approved assistance for three industrial companies in Queens, Brooklyn and Manhattan. IDA is administered by the New York City Economic Development Corporation.
“These seven projects represent the broad range of organizations the IDA helps expand in New York City,” said IDA Chairman Andrew M. Alper. “These diverse organizations in the Bronx, Manhattan, Brooklyn and Queens are growing and adding valuable jobs. The projects are expected to retain 438 jobs, create more than 50 new ones, and promote more than $66 million in private investment.”
The IDA authorized the sale of $15 million in Civic Facility Bonds on behalf of Mercy College, a non-sectarian, independent college with locations in Manhattan, the Bronx and other parts of the New York metropolitan area, to help finance the renovation of its Manhattan campus and a new Bronx facility. In February 2002, the IDA board approved about $5.7 million in bond financing to help Mercy renovate its Manhattan campus. The transaction approved today helps refinance that project as well as the renovation of about 125,000 square feet of space on Waters Place in the Bronx. When Mercy outgrew its previous Bronx campus it rented overflow space at three other locations. The move to Waters Place allows Mercy to unify its campus. The new facility provides 52 instructional areas, including classrooms and science and computer laboratories, faculty and administrative offices, an auditorium, a library, a kitchen and cafeteria, and student and staff lounges. The $15 million project is expected to help Mercy add 10 new jobs to its staff of 75.
The Reece School, the oldest not-for-profit special education elementary school in New York City, plans to build a 22,000 square-foot building on East 104th Street in Manhattan. The IDA authorized the sale of $12 million in Civic Facility Bonds on behalf of Reece and granted the school a mortgage recording tax waiver of about $300,000 to help finance the project. The building will have 12 classrooms, eight quiet alcoves, a library, a gymnasium, and administrative and clinical offices. The new facility will serve 90 children with learning and emotional disabilities between the ages of 5 and 13. The project, which will cost about $12.2 million, is expected to retain 47 jobs and create seven new ones.
The IDA Board also approved financing assistance for Highbridge-Woodycrest Center, a not-for-profit nursing facility in the Bronx that provides nursing and rehabilitative services to people with AIDS. The organization will sell about $6.6 million in Civic Facility Bonds and receive a mortgage recording tax waiver of about $180,000 to renovate and equip its current facility on Woodycrest Avenue near Yankee Stadium in the Bronx. The project includes renovations to its existing facility, the purchase of new furnishings and equipment for common areas and individual units, and the purchase of a new emergency generator, which will allow the facility to remain operational in the event of a power outage. The project is expected to cost about $9.8 million, and will add 5 jobs to the organization’s current workforce of 117.
The IDA authorized the sale of $10.3 million in Civic Facility Bonds on behalf of Palladia Inc., a Manhattan-based not-for-profit organization that provides social services and supportive housing, to buy a six-story, 29,000-square-foot facility in East Harlem. The organization will also receive a mortgage recording tax waiver of about $280,000. Palladia, one of the largest not-for-profit, multi-service agencies in New York City, serves about 1,300 people each day in over 15 different facilities. The new building will serve as Palladia’s administrative headquarters, where about 100 of its employees will be based. The new facility will also house a homeless prevention and outreach program focused on East Harlem called HomeBase. The $10.5 million project will help Palladia retain 100 of its employees and add seven new ones.
The IDA Board also voted to approve financing assistance to help three industrial companies expand. Radhaswamy, Inc., known as Raja Foods, will receive a mortgage recording tax waiver of about $320,000 and sales tax benefits of about $300,000 to buy a 110,000-square-foot parcel of land and build a 90,000-square-foot distribution center in Maspeth, Queens. The company, which imports and distributes South Asian foods, has outgrown its current facility, also in Maspeth. The company considered moving its operations to lower-cost facilities in New Jersey, where much of its inventory is shipped. The IDA benefits will allow the company to stay and expand in Maspeth. Raja Foods may also receive $53,000 in discounted energy benefits through the Business Incentive Rate (BIR) program and $89,000 through the Energy Cost Savings Program (ECSP). The company plans to add 12 jobs to its workforce of 38 as a result of the $15.5 million project.
Comfort Bedding Inc., a Brooklyn-based manufacturer of mattresses, box springs and bed frames, will receive real estate and sales tax benefits of about $660,000 to buy and renovate two adjacent buildings totaling 21,000 square feet and nearby land for parking and storage in East New York. Its current facility is inadequate for expansion, which the company must do to remain competitive and grow its business. Comfort Bedding considered moving its operations to facilities in New Jersey, including East Brunswick, Newark and Jersey City due to the higher cost of expanding in New York City. The IDA benefits will allow the company to stay in New York, retaining 31 jobs and adding six new ones. In addition to the tax benefits, Comfort may receive energy benefits of $25,000 through BIR and $42,000 through ESCP. The project is expected to cost $1.9 million.
The IDA Board also approved financing assistance for G&G Electric Supply Company, Inc., which distributes electrical supplies to contractors, builders, architects and designers. The Manhattan-based company plans to renovate its building on West 24th Street, as well as buy the first and basement floors of the adjacent building, adding 3,500 square feet to the 15,300 square feet in occupies now. To help finance the roughly $1.5 million project, G&G will receive about $425,000 in real estate and sales tax benefits. The company may also receive energy benefits of $8,900 through BIR. The project is expected to help add 4 employees to its current workforce of 30.
The New York City Industrial Development Agency provides financing assistance to businesses, including small industrial and manufacturing companies and not-for-profit organizations. IDA 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. IDA also offers qualified companies abatements on sales, real estate and mortgage taxes. IDA is administered by the New York City Economic Development Corporation. For more information go to http://www.nycedc.com/nycida.