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Construction of New Modern Facility Will Allow Home Grown Business, Founded in 1958, to Remain in New York City
New York City Economic Development Corporation (NYCEDC) today announced the selection of Krinos Foods, Inc., a Greek and Mediterranean specialty food importer, distributor, and manufacturer, to develop a new approximately 100,000-square-foot national headquarters at 1734 Bathgate Avenue, in the Bathgate Industrial Business Zone in the Bronx. Krinos was selected based on their response to an RFP issued in April 2012, and will purchase the site from the City for $3.5 million. Krinos will invest an additional $17.3 million to construct their new headquarters—creating approximately 32 construction jobs—and expects to open the facility in early 2014. Once open, Krinos plans to add five new jobs in addition to their existing 85 employees.
“The commitment by Krinos to establish a new national headquarters and expand production in the Bronx is another vote of confidence in the future of the City’s food manufacturing sub-sector and the larger industrial sector,” said New York City Economic Development Corporation President Seth W. Pinsky. “Through tens of millions of dollars in private investment, this long vacant site will now be home to dozens of important jobs, stimulating economic activity and benefiting the Bronx for decades to come.”
“In 1981 we invested in a then state-of-the-art facility in Long Island City that allowed the company to prosper for nearly 30 years. Now, through internal expansion and acquisitions we've outgrown that facility. We are thrilled to make this investment in New York City that will allow us to retain our trained and skilled employees, to continue to grow, and to efficiently serve our local, regional and national customers," said Eric Moscahlaidis, Krinos Foods President.
“I am thrilled to hear that Krinos Foods will make the Bronx its new home with its forthcoming move to our borough’s Bathgate Industrial Business Zone. I strongly believe that Krinos Foods will be an asset to our industrial sector and will help strengthen our economy by creating much needed jobs. I thank Krinos Foods for investing in the Bronx and look forward to seeing its future success here in God’s country,” said Bronx Borough President Ruben Diaz Jr.
“After a long search, we look forward to welcoming Bathgate’s newest resident the headquarters of Krinos Food, Inc. to the neighborhood. This is a positive change for Krinos and for the Bronx. By Krinos’ relocation they in turn are contributing to our efforts in revitalizing the Bronx, bringing new jobs to the community and revamping an underutilized lot in the Bathgate Industrial section,” said Councilman Joel Rivera.
Krinos was founded in Tribeca in 1958 under the name “Arista Olive Company”. The company now carries over 2,500 products and services over 5000 customers across North America through facilities in New York, Chicago, and California. The Bathgate site will allow Krinos to construct a new modern national headquarters while remaining in New York City. Once constructed, the new facility will have a more efficient layout, state-of-the art-equipment, and 36 foot high ceilings, nearly double the height of their existing Long Island City facility, thereby allowing Krinos to increase capacity and operational efficiency. Krinos also plans to seek NYCIDA assistance as part of its relocation.
The reactivation of vacant and underutilized industrial property is a key component of the City’s 22 initiatives, announced in June 2011, by Mayor Bloomberg, in partnership with the City Council, that will revitalize, modernize, and preserve up to 9 million square feet of underutilized industrial space, and create and retain up to 30,000 direct and indirect industrial jobs, generate annual payroll earnings of more than $900 million and more than $150 million in City tax revenue. The industrial sector is an integral part of the City’s economy that has faced serious challenges in recent decades, but now offers real opportunities for growth and development.
The initiatives resulted from an inter-agency review of the City’s industrial policies, led by Deputy Mayor for Economic Development Robert K. Steel, New York City Economic Development Corporation President Seth W. Pinsky, Department of Small Business Services Commissioner Robert W. Walsh and City Planning Commissioner Amanda M. Burden. The review found that while the City’s industrial sector has been declining in line with national trends of 8 percent annually over the past 10 years, there are certain subsectors showing stability and growth. As offshoring costs increase, it is anticipated that industrial activities will continue to grow nationwide. New York City in particular offers unique location-based advantages for industrial activity, including a population of about 8.4 million, access to a large workforce and highly-skilled labor, and one of the nation’s busiest ports based on import volume. The review also found that industrial businesses in the City are challenged by a lack of building stock appropriate for modern industrial uses, higher costs, and difficulty maneuvering City processes. Industrial sectors account for 15 percent of New York City’s overall private employment and more than 23 percent of employment outside of Manhattan, and industrial jobs have a mean wage of $67,000.
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. Find us on Facebook or follow us on Twitter, or visit our blog to learn more about NYCEDC projects and initiatives.