NYCIDA Assists Two Industrial Companies To Expand In Queens
Projects will spur private investment of $6.4 Million and retain and create nearly 70 industrial jobs
Helping industrial companies grow is a vital part of the City’s Five Borough Economic Opportunity Plan
New York City, October 13, 2009 – The Board of the New York City Industrial Development Agency (NYCIDA) today gave preliminary approval for sales and real estate tax incentive packages to assist two industrial companies to expand in Queens. Dinas Distribution Corporation plans to invest $3.8 million to acquire and renovate an approximately 32,000-square-foot facility in Jamaica. PA Austin LLC, an affiliate of Parts Authority, will acquire the 7,350-square-foot facility it currently leases in Rego Park. Together, the two projects will retain more than 45 jobs and create approximately 20 new ones over the next three years. As a result, the City will gain approximately $7.4 million (NPV) in tax revenue over 25 years.
“These two companies are perfect examples of the types of companies the NYCIDA was created to assist,” said NYCIDA Chairman Seth W. Pinsky. “For example, Dinas Distribution started as small, single location business and has used excellent service to expand its product lines and customer base. I am pleased that NYCIDA is able to make the necessary investments to allow Dinas Distribution and PA Austin to remain and grow in New York City. Expanding small manufacturing and distribution companies is a critical component of Mayor Bloomberg’s Five Borough Economic Opportunity Plan.”
Dinas Distribution Corporation, an importer and distributor of ethnic foods, cookware, and housewares, was approved to receive up to $1.5 million in real estate and sales tax benefits for the acquisition and renovation of a property on Dunkirk Street in Jamaica, Queens. Dinas Distribution was founded fifteen years ago by two brothers from Colombia, Luis and Ruben Valasquez, who initially opened a retail bakery. They quickly moved into the food distribution business and founded their distribution company in a 400-square-foot garage. As the company grew, the brothers acquired a 10,000-square-foot facility in Maspeth and rented additional facilities in the area. It will allow the company to improve the inefficiencies of operating from multiple locations. It will also allow them to continue to diversify their product lines and enter a wider market to be more competitive with other companies in their industry. The company identified less expensive properties in New Jersey that could accommodate its needs with lower operating costs, but it preferred to grow in New York City. Over the next few years, Dinas expects its workforce to grow to 25 full-time-equivalent employees.
PA Austin currently leases 4,350 square feet of space in a 7,350-square-foot facility on Metropolitan Avenue in Rego Park. The owner of the property wants to sell it, and PA Austin would like to take advantage of the opportunity to solidify its ability to stay and grow at this location. Acquisition of the property would help PA Austin to invest about $2.6 million to renovate and expand its operations. The NYCIDA Board approved up to $1.2 million in real estate and tax incentives for PA Austin LLC to assist with the acquisition, renovation and expansion project, which will enable the company to add about 14 employees to its current workforce of 28.
The 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. To request information and details on NYCIDA programs, call (212) 312-3600 or e-mail [email protected].
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.
About the Five Borough Economic Opportunity Plan
The 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.