NYCIDA to Help Four Not-For-Profit Organizations and Two Industrial Companies Expand and Add Jobs
Projects Will Help Retain and Create 550 Jobs In New York City.
New York City Industrial Development Agency (NYCIDA) approved financing assistance for the expansion of four not-for-profit organizations and two industrial companies in Brooklyn, Queens and Manhattan. Groups and companies receiving assistance include three schools, two industrial companies and a college. In total, the transactions will spur private investment of nearly $113 million and are expected to create and retain more than 550 jobs.
“The financial assistance approved by the City’s Industrial Development Agency today represents one of the ways the Bloomberg Administration is successfully fostering the growth of not-for-profit organizations and industrial companies across the City,” said Robert C. Lieber, President of New York City Economic Development Corporation, which administers NYCIDA. “The projects will help these organizations add space, expand services and create jobs, and NYCIDA is pleased to help make them possible.”
NYCIDA approved approximately $43 million in tax-exempt bonds and about $1.1 million in mortgage recording tax benefits for Touro College’s facilities in Manhattan and Queens. The not-for-profit, private, four-year college educates about 12,700 students annually will use bond proceeds to finance and refinance the construction, renovation and equipping of an approximately 48,000-square-foot commercial condominium for use by the Lander College for Women, as well as to refund previous agency bonds. Opened in 2006, the Lander College facility contains a gymnasium and health club, student activity spaces and administrative and faculty offices. Proceeds of the earlier bond issuance totaled $32.8 million and were used to acquire and construct an approximately 73,000-square-foot facility in Kew Gardens, Queens, consisting of classrooms and seminar rooms, a study hall, laboratories, a library and student space. NYCIDA assistance will allow Touro to continue to provide its academic programs and scholarships to underserved populations without diverting funds to cover project costs. The $44.4 million project will retain more than 135 jobs and create more than 40 new ones.
NYCIDA approved approximately $9 million in tax-exempt bond financing, about $1 million in taxable bonds and about $279,000 in mortgage recording tax benefits for construction and renovation work at two Bnos Zion of Bobov, Inc. facilities. The not-for-profit girls school will use NYCIDA financing assistance to construct a new five-story, 60,000-square-foot building in Brooklyn, as well as to renovate its existing 90,000-square-foot school building in Brooklyn. The school serves more than 1,600 students annually in grades from pre-school to high school and a vocational post-high school program. The project will link the existing building with the new construction to better accommodate students and house an expected increase in demand for enrollment. The approximately $12.9 million project will retain more than 130 jobs and create about 35 new jobs.
NYCIDA approved approximately $8.4 million in tax-exempt bond financing and up to $235,000 in mortgage recording tax benefits for Congregation Lev Bais Yaakov, a not-for-profit private school for girls in nursery school through grade eight that educates about 280 students in two separate facilities in Brooklyn. Bond proceeds will be used to refinance an existing mortgage and finance the construction of classrooms and office space in Brooklyn. The school has relocated five times in the last nine years due to rapid growth. The new six-story, 36,000-square-foot facility will allow the school to accommodate more students within current grade levels and provide space for upper grades. The approximately $9.3 million project will retain more than 55 jobs and create about five new jobs.
NYCIDA approved approximately $18.7 million in tax-exempt bond financing and about $500,000 in mortgage recording tax benefits for the Gateway School of New York, a co-education special needs school serving students ages five through 13. The school will use bond proceeds to acquire and renovate condominium units totaling about 18,700 square feet in midtown Manhattan. NYCIDA financing assistance will allow the school to remain a unified, single facility and expand its services to an increased student body, including a unique transition program for nine to 13-year olds that teaches skills necessary to succeed in traditional middle-schools. The $31.6 million project will retain more than 35 jobs and create more than 20 new positions.
“These four not-for-profit groups provide needed services to New York City youth and represent nearly 720,000 New York City-based jobs making it an important—and very stable—sector of the economy,” said NYCIDA Executive Director Kei Hayashi. “NYCIDA is pleased to provide financing assistance that will allow these organizations to continue educating City residents and expand the services they provide.”
NYCIDA approved about $4 million in mortgage recording tax and real estate tax benefits and about $20,000 in sales tax exemptions to help 88 Trading Corp, a distributor of paper and plastic products, to acquire and renovate a 55,000-square-foot facility in the Maspeth section of Queens. The new facility will allow the company to expand production and increase operational efficiency. The company explored several locations outside New York City, but NYCIDA benefits will allow them to remain in the City. The company will retain more than 30 jobs and create three new positions as a result of the $9 million project. In addition, the company may also qualify for about $36,500 in discounted energy from the Business Incentive Rate program (BIR) and about $64,000 from the City’s Energy Cost Savings Program (ECSP), as well as about $31,000 in Industrial Business Zone Relocation tax benefits.
NYCIDA approved about $2 million in mortgage recording tax and real estate tax benefits and about $8,800 in sales tax exemptions to help Barrone Steel Fabricators, Inc. acquire and renovate a 21,600-square-foot facility in the Sunset Park section of Brooklyn. The fabricator and erector of structural steel can no longer accommodate its operations in its current space in Sunset Park. The new facility will allow the company to realize further growth, increase its operational efficiency and stay in the City. The company will retain about 45 jobs and create four new ones as a result of the $5.7 million project. In addition, the company may also qualify for about $38,000 from the BIR program and about $67,000 from ECSP, as well as $360,000 in Industrial Business Zone relocation tax and Empire Zone wage tax benefits.
The New York City Industrial Development Agency (NYCIDA) 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].