NYCIDA does not provide loans or grants, but instead acts as a conduit organization for financing in the bond market and it conveys certain tax reductions.
A project size of $1 million or greater is generally where the break-even point occurs, from the Company’s perspective. NYCIDA staff will work with you to determine if it is in a company’s interest – as well as in the City’s – to apply for NYCIDA benefits or to help identify other programs that may be a better fit.
In FY2007, NYCIDA closed 56 projects, or approximately 28 percent of initial inquiries. In FY 2008, 42 projects closed, or about 21% of inquiries. In FY 2009, there were 12 closings. The majority of inquiries in 2009 were for benefits not available from NYCIDA, but instead for working capital or grants directly from the City.
For Commercial Growth Incentive projects, developer transactions are subject to contracts that are negotiated between the applicant and NYCIDA. Terms of the contract requirements are more extensive and explicit than those under more typical Industrial Incentive Program requirements, including number of jobs to be retained and created. The contracts also contain penalties for failure to meet requirements, beyond penalties in industrial transactions.
NYCIDA uses a variety of tools to encourage private investment that result in the creation and retention of jobs in the City. Discretionary tax benefits may be conveyed to encourage the City’s economic growth and diversification. NYCIDA is very sensitive to the scarce resources of the City and State in providing such discretionary benefits.
New York City Economic Development Corporation (NYCEDC), administers the New York City Industrial Development Agency (NYCIDA), a public benefit corporation that helps companies locating or relocating within New York City undertake capital expansions or expand their existing operations in the City.
State law requires NYCIDA to hold a public hearing (where the public can provide testimony) before approving assistance for proposed projects. For bond transactions, this hearing satisfies federal law requirements. NYCIDA Board of Directors meetings are open for the public to attend only.
