NYCIDA Approves Fresh Incentives for Supermarket in the Bronx
New York City Industrial Development Agency (NYCIDA) approved today 3462 Third Ave. Food Corp. to receive Food Retail Expansion to Support Health (FRESH) financial incentives of approximately $449,000 to construct a $1.1 million, 17,000-square-foot Associated Supermarket in the Morrisania section of the Bronx. The project is the third to be approved for FRESH incentives and is expected to create 28 new permanent jobs. NYCIDA also approved a growth-based financial assistance package for Deloitte LLP and an industrial incentive package for J & J Johnson General Contracting Co., Inc. NYCIDA also approved an amended benefits agreement for Thomson Reuters LLC, a successor to Reuters America Inc.
“The purpose of the FRESH program is to provide healthy food options to all New Yorkers, particularly in neighborhoods that are severely underserved by fresh food retail,” said NYCIDA Chairman Seth W. Pinsky. “Today’s approval of a new full-service grocery store in Morrisania is the third designation of a FRESH beneficiary in the last six months – a clear sign that the program is making progress on its goals.”
“For a number of years, the New York City Council has been working to address many of the challenges facing New Yorkers who want to eat a healthier diet. A lack of nutritious food options in many communities has made it virtually impossible for many New Yorkers to access the food they need and has been the target of much of our work,” said City Council Speaker Christine C. Quinn. “The FRESH initiative marked the first time any city in the country used zoning as a way to support supermarket expansion, creating incentives for developers to include grocery stores in new construction. Today’s approval is not only great news for Morrisania residents but also excellent news for the local economy.”
3462 Third Ave. Food Corp. plans to enter into a long-term lease and to furnish and equip an approximately 17,000-square-foot retail supermarket facility located on the ground floor of “La Casa de La Luna,” an approximately 135,000-square-foot affordable residential building currently under construction at 3462 Third Avenue in the Bronx. Benefits will come in the form of land, building, and sales tax exemptions. The site is located within the FRESH program area, making it eligible for zoning and financial incentives to aid in the development of a neighborhood grocery store.
3462 Third Ave. Food Corp. is a retail supermarket operating company run by Mr. Teofilo De Jesus, who owns and operates six other retail supermarkets in the metro area under the Associated Supermarket and Compare Foods banners.
NYCIDA also approved today a growth-based incentive package of up to $10.6 million in net present value for Deloitte LLP and a $1.6 million tax incentive package for J & J Johnson General Contracting Co., Inc.
The Deloitte package will assist the company in relocating and expanding its headquarters in up to 630,000 square feet of space at 4 World Financial Center in Lower Manhattan. Deloitte is not entitled to, but can earn an estimated $10.6 million (NPV) in growth benefits if it increases its employment in Lower Manhattan by 2,100 above its current employment count of 4,211 in New York City. Deloitte will be required to maintain its 4,211 existing New York City employee count, any new growth employees in New York City and the Company’s headquarters in Lower Manhattan for the 18-year-term of this project agreement.
Deloitte LLP and its subsidiaries are among the nation’s leading professional services firms providing, audit, tax, consulting and financial advisory services through a workforce of approximately 40,000 people spread over 90 cities within the United States.
The J & J Johnson incentive package will assist in the acquisition, renovation and construction of an approximately 20,000-square-foot industrial facility located on an approximately 17,000-square-foot parcel of land at 42-26 13th Street in the Long Island City section of Queens. As a direct result of the incentive package, J & J will retain 28 full time jobs and projects it will create six new permanent positions in the next three years.
J & J Johnson is a furniture manufacturer and distributor.
The amendment to an existing 1998 agreement with Reuters America Inc. allows the recently merged company Thomson Reuters to access benefits in exchange for a number of enhancements that benefit the City. The new agreement requires Thomson Reuters to increase its base employment commitment from 1,800 to 3,744, and grow its overall employment count in New York City above 4,210 to access the full $20.77 million (NPV) in benefits. Thomson Reuters will also be required to locate its corporate headquarters in New York City and report project information under Local Law 48 until the end of the agreement in 2025.
Thomson Reuters is a leading business information company in both the media and financial services industries.
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 to learn more about NYCEDC projects and initiatives.
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.