NYCEDC Leases 25th Street Pier To LaFarge
Maritime Use Will Revitalize Brooklyn’s Waterfront and Create 30 New Jobs
New York City Economic Development Corporation (EDC) today announced that the largest suppliers of cement in the United States and Canada, Lafarge North America, has signed a long-term lease for the 25th Street Pier in the Sunset Park section of Brooklyn. Lafarge will develop the 6.8-acre site into a storage and shipping terminal for its cement products. The company will invest $8.5 million in maritime-related renovations to the pier and another $12 million to construct silos and purchase other equipment. The project will create about 30 new jobs for the Brooklyn waterfront and bring the City more than $1.4 million in revenue annually for at least 20 years.
“This is the first long-term maritime contract executed by the City since the late 1980s and an excellent example of Mayor Bloomberg’s commitment to put the Brooklyn waterfront back to work with long-term, sustainable maritime uses,” said EDC President Andrew M. Alper. “In Red Hook, construction is underway for a new $30 million cruise ship terminal to accommodate the cruise industry’s burgeoning growth. At the South Brooklyn Marine Terminal, in Sunset Park, we are working with The Axis Group to develop a $40 million automobile processing facility, and Hugo Neu Corporation to develop a $35 million state-of-the art recycling facility where all recycling material will arrive by barge and 75 percent will leave by barge. These three projects will create more than 700 jobs.”
Cement products from Lafarge’s Ravena manufacturing plant in upstate New York will be transported to the pier by barge. The new distribution facility will feature a modern transfer system designed to move material from barge to dock, where it will be loaded onto trucks for delivery to customers in the New York metro region.
“This lease underscores the long-standing relationship Lafarge has with the City’s building community,” said Claude Bastien, President of the Northeast Region of Lafarge North America’s Cement Division. “Over time Lafarge materials have gone into a number of high profile New York City projects such as JFK Airport, the Hayden Planetarium, and the revival of Times Square. Our investment in our maritime network matches well with EDC’s objective to redevelop the city’s maritime commerce.”
The lease for the pier, negotiated by EDC on behalf of the City, is for 20 years, with the possibility of two five-year extensions. Rehabilitation of the pier and construction of the new facility will begin early this year and take about a year to complete. Lafarge was selected to develop the site as a result of a Request for Proposals (RFP). In evaluating the proposals, EDC used a variety of criteria, including return to the City, development team qualifications, financial feasibility and relation to the surrounding community.
“I am extremely pleased that Lafarge will be joining the community of industries on the Sunset Park waterfront and participating in the revitalization and rehabilitation of the 25th Street Pier and the Sunset Park waterfront in particular,” said Councilmember Sara M. Gonzales. “Lafarge’s commitment to invest in our community by providing capital improvements to our waterfront and by committing to provide funding or services for the Bush Terminal Open Space project that will provide the residents of the area with much needed parkland will prove to be of great benefit to the communities of the 38th district, the residents of Brooklyn, and all of the people of our great City of New York.”
The 25th Street Pier is located between the Gowanus Bay and Third Avenue at the foot of 25th Street. The site includes a 200-foot by 1,350-foot fully paved pier and about three quarters of an acre of adjacent upland property. The Gowanus Bay provides access to the Atlantic Ocean and maritime terminals in the Port of New York and New Jersey. Convenient vehicular access is available to the Gowanus Expressway (I-278), which is part of the regional highway system that serves New York City, Long Island, New Jersey and New England.
Lafarge North America (NYSE & TSX: LAF) is the largest diversified construction materials company and supplier of cement, ready-mixed concrete, gypsum wallboard, aggregates and asphalt, and other materials used for residential, commercial, institutional and public works construction in the United States and Canada. Lafarge North America is part of the Lafarge Group, a world leader in building materials that is active in 75 countries, and employs more than 77,000 people.
New York City Economic Development Corporation is the City’s primary vehicle for promoting economic growth in each of the five boroughs. EDC’s mission is to stimulate job growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City’s competitive position. EDC 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.