NYCIDA closed 20 projects in FY2013, 21 projects in FY2014, and 14 projects in FY2015.
Benefits vary widely among the different programs, but are usually several million dollars over the project term, which is generally 25 years.
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.
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.
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.
To find out when the next NYCIDA Public Hearing or Board Meeting is or to access project information or view the meeting notice or agenda, visit the Meetings & Public Hearings page. You can also listen to audio and videocasts of the Public Hearings the Board Meetings.
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.
In 1979, the City formed Economic Capital Corporation of New York City (ECC), subsequently renamed Financial Services Corporation of New York City (FSC). FSC oversaw the financial side of the City’s urban development transactions and initiatives, promoting citywide business expansion by administering finance programs. FSC also assumed responsibility for overseeing programs of the New York City Industrial Development Agency (NYCIDA), a public benefit corporation that was established to promote business expansion and stimulate employment growth in the City.
In 1991, the Financial Services Corporation merged with the Public Development Corporation to form NYCEDC, which is responsible for comprehensive economic and industrial real estate development services throughout the five boroughs. As a result of the merger, NYCEDC assumed the services previously undertaken by the merged corporations, including oversight of NYCIDA and its operations.
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. Therefore, we view the benefits proposed and provided to companies and developers as a “last resort.” The terms and conditions pursuant to which these benefits are provided are evaluated on a case-by-case basis and tailored to meet the needs of both the City and the recipient. A variety of factors influences our decision to consider providing such extraordinary benefits, including:
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.
For Industrial Incentive Program transactions, agreements are primarily intended to encourage the applicants to remain in the City and expand or improve their facilities. Violations under these agreements are real-estate based and a standard 10-year recapture period is imposed for a variety of scenarios, including:
When projects are completed as agreed, a certain amount of job growth should result. NYCIDA tracks and reports that growth, but job growth is not a factor for recapture or penalties for industrial companies. Recapture is an important component of these transactions. It is intended to reimburse the City and State for foregone taxes. NYCIDA agreements serve as an enforcement mechanism and amounts recaptured are returned to the proper jurisdiction.