NYCCRC Approves $4.4 Million in Nimble Bonds for Manhattan-Based Information Technology Firm to Expand
NYC Industrial Development Agency Assists Wholesale Food Distributor to Expand in the Bronx
Two Projects Will Create and Retain Approximately 250 Jobs and Promote Private Investment of More than $50 Million
Reinforcing the City’s Evolving Industrial Sector Is Important Part of the Bloomberg Administration’s Five Borough Economic Opportunity Plan
New York City, November 10, 2009 – New York City Capital Resource Corporation (NYCCRC) and New York City Industrial Development Corporation (NYCIDA) today gave preliminary approvals for financial assistance for two industrial companies to help them remain and grow in New York City. The projects proposed by Stellar Services and Jetro Cash & Carry Enterprises LLC will retain and create about 250 jobs and spur private investment of more than $50 million in the Bronx and Manhattan. The transaction for Stellar Services is the first under the new NIMBLE Qualified Small Issue Bond Program which helps small manufacturers access low-cost, tax-exempt financing. Stellar Services is also the first company to take advantage of the federal government’s expanded definition of qualified projects to include developers of intangible property, such as patent, copyright and other intellectual property. Under the program, NYCCRC places bonds on behalf of the borrower directly with banks or other qualified lenders.
“We commend the federal government for expanding its tax-exempt bond programs to encompass a broader array of companies, including new media, biotechnology and IT companies, and are proud that New York is among the first municipalities to execute on the promise that these changes entail,” said NYCCRC Chairman Seth W. Pinsky. “As we have consistently done since earlier this year, the City will continue to seek innovative ways to use the resources provided by the federal stimulus package to create jobs in existing and emerging industries located throughout the five boroughs.”
Stellar Services is a developer of information technology solutions for large, multi-phase, long-term construction projects. Stellar received preliminary approval from the NYCCRC Board for up to $4.4 million in NIMBLE bonds for the acquisition and renovation of two adjacent commercial condominium units on West 36th Street to house its growing operations. The total cost of the project is estimated at $5.65 million.
Founded in 1993 by Liang Chen in the basement of his home in Forest Hills, the company moved into the World Trade Center in 1999. After the events of September 11th Stellar purchased its current 3,500-square-foot facility on West 38th Street. Since then, the company has grown steadily and desperately needs more space to accommodate its 45 employees and streamline operations. With 7,200 square feet of space, the two new condo units will satisfy those needs and provide the expansion space needed for the six additional employees Stellar plans to hire over the next few years.
At the meeting of the New York City Industrial Development Agency which followed the NYCCRC meeting, the NYCIDA Board approved a tax incentive package for Jetro Cash & Carry Enterprises, LLC. Jetro Cash & Carry, a provider of wholesale food and related products for independent grocery stores and restaurants since 1976, plans to acquire an approximately 522,720-square-foot vacant property on Oak Point Avenue in the Bronx. It intends to construct and equip a 193,000-square-foot warehouse facility to house and expand its current operations at East 149th Street.
The new facility will also include an affiliate operation, Restaurant Depot. Locating Jetro and Restaurant Depot in the same facility will create operating efficiencies for both companies and provide their overlapping customers an expanded variety of products. Jetro was approved for up to $21 million in tax credits, including Empire Zone Wage Tax Credits and Industrial Business Zone Relocation Tax Credits. The project costs are estimated to be $46 million and will retain or create about 190 jobs. Jetro identified comparable property in New Jersey that would be cheaper to acquire and operate, but prefers to keep this operation in New York City. The company operates 80 warehouses throughout the United States under the formats of Jetro Cash & Carry and Restaurant Depot.
About NYCEDCNew 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: http://www.facebook.com/NYCEDC.
About NYCCRCThe New York City Capital Resource Corporation (NYCCRC) is a local development corporation administered by New York City Economic Development Corporation. The mission of NYCCRC is to encourage community and economic development and job creation and retention throughout New York City by providing lower-cost financing programs to qualified not-for-profit institutions and manufacturing, industrial, and other businesses for their eligible capital projects.
About NYCIDAThe 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.
About the Five Borough Economic Opportunity PlanThe Five Borough Economic Opportunity Plan is a comprehensive strategy to bring New York City through the current economic downturn as fast as possible. It focuses on three major areas: creating jobs for New Yorkers today, implementing a long-term vision for growing the city's economy, and building affordable, attractive neighborhoods in every borough. Taken together, the initiatives that the City has launched to achieve these goals will generate thousands of jobs and put New York City on a path to economic recovery and growth.