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IDA Announces It Closed 50 Transactions in 2006, Helping Retain and Create More than 11,000 Jobs throughout New York City.
New York City Industrial Development Agency (IDA) approved financing assistance for three industrial companies and two not-for-profit organizations with locations in all five boroughs. IDA ends 2006 having closed on 50 transactions, up from 48 in 2005, helping to spur more than $2.6 billion in private investment, retain about 8,260 jobs and create about 2,800 new ones. IDA is administered by the New York City Economic Development Corporation.
“Not-for-profit organizations and industrial companies are thriving in New York City, and IDA continues to help them expand their operations,” said IDA Interim Chairman Joshua J. Sirefman. “IDA had a tremendous year, closing on major projects like new stadiums for the Yankees and Mets, which together won Bond Buyer’s Deal of the Year award, as well as a wide variety of smaller projects to help industrial companies and not-for-profits expand and add jobs in each of the five boroughs. I would like to thank IDA’s Board and staff for their hard work and diligence over the past year, and I expect IDA to have as much success in 2007.”
IDA approved about $46.5 million in tax-exempt bonds for the American Cancer Society, Eastern Division Inc. to help finance the acquisition, renovation and equipping of a 77,000-square-foot condominium unit on West 32nd Street in Manhattan that will serve as a 60-room Hope Lodge facility. American Cancer Society’s Hope Lodges’ are free, temporary residential centers for out-of-town adult cancer patients undergoing treatment in New York City and their caregivers. In addition to lodging, Hope Lodges provide a full spectrum of services to individuals affected by cancer and their families. The facility will also serve as administrative offices for the organization’s Manhattan operations. The approximately $53 million project will retain and create 77 jobs.
IDA approved about $3.96 million in tax-exempt bonds and about $5.2 million in real estate and sales tax benefits for Tri-State Biodiesel LLC. Bond proceeds and tax benefits will be used to construct and equip a 12,900-square-foot manufacturing and warehouse facilities for converting cooking oil into biodiesel fuel in the Red Hook section of Brooklyn. Biodiesel is a renewable, bio-sustainable alternative fuel that be used in any diesel engine that burns cleaner than traditional diesel fuel. All fuels made at the Tri-State facility will be made from waste restaurant grease. Pacific Biodiesel, a Hawaii-based company, will construct the Red Hook facility, its 11th facility and its first “urban” facility in the United States. The project will retain and create 26 jobs. In addition to tax benefits, the company may also qualify for about $13,000 in discounted energy from the Business Incentive Rate (BIR) program and about $24,000 from the City’s Energy Cost Savings Program (ESCP).
“The Hope Lodge and Tri-State Biodiesel projects represent the best of what IDA finance assistance can help achieve,” said IDA Executive Director Kei Hayashi. “Not only do these two projects spur investment and create new, high-quality jobs, they serve the communities where they are located and improve the quality of life of all New Yorkers.”
YMCA of Greater New York, a community service organization that includes numerous branches and program sites throughout the five boroughs, will receive about $39 million in tax-exempt bond financing to refund outstanding IDA bonds from 1997 and 2002. The savings realized from this refunding will allow the YMCA to continue serving 38,000 New York City youth. The projects previously financed are creating more than 80 jobs and retain 809 existing ones.
Apthorp Cleaners Inc., a wholesale dry-cleaning and laundry processor, will receive real estate and sales tax benefits of about $451,000 and a mortgage recording tax waiver of about $26,000 to acquire and equip a 5,700-square-foot facility on East 149th Street in the Bronx. The new facility will provide needed expansion space to offer additional in-house services not available at its current Upper Manhattan location, as well as increased space for new, state-of-the-art equipment that will enable the company to remain in New York City and expand its clientele. As a result of the project, Apthorp anticipates to add 11 employees to its existing staff of 13 over the next three years. In addition to tax benefits, the company may also qualify for about $12,000 in BIR benefits and about $21,000 in ESCP benefits, as well as $146,000 in Empire Zone Wage Tax Credits.
IDA approved real estate and sales tax benefits of about $45 million and a mortgage recording tax waiver of about $2.5 million for Federal Express Ground Package System to help it expand its operations in New York City. The global parcel shipping company and development partner Steel Equities will construct a new 225,265-square-foot facility in Astoria, Queens that will serve as Fed Ex’s eighth overnight transfer center in the United States and allow an expansion of its service in New York, New Jersey, Pennsylvania and Connecticut. The project will retain 70 jobs and create 99 new ones.
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. To request information and details on IDA programs, call (212) 312-3600 or e-mail email@example.com.