NYCIDA to Help Six Special Needs Organizations Expand Throughout New York City
New York City Industrial Development Agency (IDA) approved financing assistance for six not-for-profit organizations in Brooklyn, Queens, Manhattan and the Bronx as part of the agency’s Special Needs Facilities Pooled Program. IDA also approved assistance for three industrial companies and two additional not-for-profit organizations helping them expand and add jobs. In total, the projects are expected to create and retain more than 1,400 jobs. IDA is administered by the New York City Economic Development Corporation.
“The Special Needs Facilities Pooled Program represents yet another way IDA can harness its resources to help not-for-profit organizations expand their services while creating jobs in the process,” said Interim IDA Chairman Joshua J. Sirefman. “In its eighth year, the program has provided assistance to 41 organizations that tend to special needs individuals, supporting expansion and creating more than 1,500 jobs throughout New York City.”
IDA’s Special Needs Facilities Pooled Program, designed to pool the needs of qualified not-for-profit organizations to achieve economies of scale, is administered by IDA in conjunction with the InterAgency Council of Mental Retardation and Developmental Disabilities Agencies, a membership organization that includes more then 120 providers of disability services. The six organizations will receive a total of up to about $14 million in tax-exempt bond financing and about $410,000 in mortgage recording tax waivers. IDA assistance will be used to help pay for facility renovations and refinancing existing debt. Together, the projects represent facility investments of more than $14.6 million and are expected to retain 366 jobs and add 99 more. The six organizations are: Association of Metroarea Autistic Children, Inc. (Manhattan), HASC Center, Inc (Brooklyn, two locations), InterAgency Council of Mental Retardation and Developmental Disabilities (Manhattan), Leake and Watts Services, Inc (Bronx, seven locations), Rivendell School (Brooklyn) and Young Adult Institute (Queens).
IDA approved approximately $40 million in tax-exempt bonds for The Chapin School. The not-for-profit, independent preparatory school, which serves grades K-12, will use the bond proceeds to finance renovations to the school’s existing 110,000-square-foot Manhattan facility that will result in the addition of two new floors and four new classrooms. The $40.5 million project will improve educational services to Chapin’s 675 students.
D. C. Center Corp, a dry cleaning and laundry wholesale processor, will receive real estate and sales tax benefits of about $1.6 million and a mortgage recording tax waiver of about $59,000 to acquire, renovate and furnish a 19,000-square-foot facility in Woodside, Queens. The new facility will provide operational efficiency options not possible at its current 15,000-square-foot Brooklyn location, as well as increased space for new, state-of-the-art equipment enabling the company to remain in New York City and expand its clientele. As a result of the project, D.C. Center will add 27 employees to its existing staff of 24. In addition to tax benefits, the company may also qualify for about $38,000 in discounted energy from the Business Incentive Rate (BIR) program and about $71,000 from the City’s Energy Cost Savings Program (ESCP)
Marble Techniques, Inc., a fabricator and installer of granite, marble and stone home furnishings, will receive real estate and sales tax benefit of about $1.4 million and a mortgage recording tax waiver of about $146,000 to acquire a 10,000-square-foot building and build a 15,000-square-foot addition in College Point, Queens. The project will help the company retain 93 existing jobs and create 25 new ones. In addition to tax benefits, the company may also qualify for about $51,000 in BIR benefits and about $93,000 in ESCP benefits.
Peerless Importers Inc. will receive real estate and sales tax benefits of about $7.3 million to renovate an existing warehouse facility and install a state-of the-art sorting system to significantly increase capacity. The company, one of the largest wholesale distributors of alcoholic beverages in New York City, has seen significantly increased competition from distributors outside the City in the last two years. Peerless is expected to enter into a business combination with Charmer Industries in early 2007 to streamline operations and reduce costs in an effort to remain competitive. The move is expected to result in the shifting of jobs between the two company sites and a net loss of 56 jobs over the coming months, but, together with the renovations, it will keep 650 industrial jobs in Brooklyn and more than 1,300 jobs in New York City that would have otherwise been lost. In addition to tax benefits, the company may also qualify for about $301,000 in BIR benefits and about $550,000 in ESCP benefits.
“These eleven projects illustrate the wide array of companies and organizations that IDA helps expand,” said IDA Executive Director Kei Hayashi. “In total, the projects voted on today will retain and create nearly 1,500 jobs and spur more than $74 million in private investment throughout New York City.”
The New York City Industrial Development Agency 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].