NYCIDA Authorizes Assistance for Two Terminal Expansions at JFK Airport
IDA to Help Two Not-For-Profit Organizations and Two Industrial Companies Expand in Queens, the Bronx and Manhattan
New York City Industrial Development Agency (IDA) authorized financing assistance for two major terminal expansions at John F. Kennedy International Airport. American Airlines is building a new $1.1 billion terminal, while Terminal One Group Association (TOGA), a consortium of four airlines, is modifying and expanding its current terminal. The IDA Board also approved financing assistance for two not-for-profit organizations and two industrial companies. Those projects are expected to create and retain about 160 jobs and spur more than $45 million in private investment.
“If we want New York City to remain the business capital of the world and an important tourist destination, it is imperative that we foster investment in our transportation infrastructure, including our airports,” said Chairman Alper. “These terminal expansions will greatly enhance JFK Airport, the gateway to New York City, and I’m pleased IDA was able to help make them happen.”
The IDA Board authorized the sale of up to $700 million in tax-exempt bonds to help finance the new American Airlines terminal. IDA authorized an initial bond issuance of $500 million in July 2002. The first phase of construction was completed earlier this year and a portion of the terminal was open to the public. When the final phase of construction is completed in the spring of 2007, the terminal will cover 1.4 million square feet and provide 36 gates, serving as the primary location for the 8,500 American Airlines employees in the Metropolitan area. All told, the project is expected to create about 500 construction jobs.
The IDA Board also authorized $417 million in tax-exempt bonds for Terminal One Group Association, an entity that includes Compagnie Nationale Air France, Japan Air Lines, Korean Air Lines, and Deutsche Lufthansa Aktiengesellschaft. TOGA will use the assistance to refinance bonds originally authorized by IDA to build the terminal in 1994 so that it can reduce its annual debt service and modify the terminal to accommodate new, larger aircraft. IDA also approved a sales tax exemption of about $1.6 million. Currently, the facility houses 660 airline employees.
IDA authorized the sale of about $19 million in bonds on behalf of Tides Two Rivers Fund, as well as a mortgage recording tax waiver of $531,000. Tides Two Rivers Fund, a San Francisco-based not-for-profit organization that develops infrastructure projects for other not-for-profits, will buy an office condominium at 15 Broad Street in Lower Manhattan to create space for a multi-tenant nonprofit center known as the Thoreau East Project. The project cost is expected to be about $23 million. Thoreau East will use the 40,000 square-feet of space to create workspace for community organizations and build a cultural center for the area.
“This project is the latest example of the diversification of the Lower Manhattan economy and the changes taking place Downtown,” said Steven Berzin, IDA Executive Director. “Lower Manhattan is increasingly becoming home to companies from outside the financial services sector, thereby broadening our economic base. With the forward-thinking help of the Tides Two Rivers Fund, the Thoreau East Project exemplifies the kinds of initiatives that will preserve and expand not-for-profit occupancy in the financial district.”
In a separate transaction, Sponsors for Educational Opportunity (SEO), a not-for-profit organization that helps underprivileged children with academic and career services, plans to buy and renovate about 15,000 square feet, also in 15 Broad Street. IDA authorized the sale of about $8.3 million in bonds on behalf of SEO, as well as a mortgage recording tax waiver of about $234,000. The organization plans to consolidate its three existing Manhattan office locations to reduce costs and facilitate service coordination. The $10.6 million project will allow SEO to stay in Manhattan and bring its 46 employees Downtown.
Prestone Printing Company will receive sales and real estate tax benefits of about $2.4 million and a mortgage recording tax waiver of $255,000 to buy and renovate a new building on 30th Street in Queens. The company is moving out of its current Brooklyn location because of rising costs and it explored multiple locations in New Jersey. IDA benefits will allow the organization to stay in New York City. The company may also qualify for about $93,000 in discounted energy from the Business Incentive Rate (BIR) program and about $156,000 from the City’s Energy Cost Savings Program (ECSP). The $10.1 million project will retain 67 jobs and is expected to create 30 new ones.
Yorkville Van and Storage Co., which provides commercial storage space for documents, archives and furniture, plans to buy and renovate a 31,000 square-foot facility in the Port Morris section of the Bronx. The company’s lease of its existing facility in Manhattan expired, and it wanted to relocate to elsewhere in New York City or New Jersey. The IDA Board approved sales and real estate tax benefits of about $641,000 and a mortgage recording tax waiver of about $48,000 to help the company stay in New York. Yorkville plans to add 8 employees to its existing workforce of 12 as a result of the $2.2 million project. The company may qualify for about $20,000 in discounted energy through BIR and about $33,000 through ECSP.
The New York City Industrial Development Agency, administered by the New York City Economic Development Corporation, provides financing assistance to businesses, including small industrial and manufacturing companies and not-for-profit organizations. IDA 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. IDA also offers qualified companies abatements on sales, real estate and mortgage taxes. To request information and details on IDA programs, call (212) 312-3600 or e-mail [email protected].