Industrial Agency to finance five New York City projects

Real Estate Weekly, Dec 28, 2005

New York City Industrial Development Agency approved financing assistance for New York Law School, which plans to invest nearly $145 million to build a new building in lower Manhattan.

IDA, which is administered by the New York City Economic Development Corporation, will also assist four industrial companies expand in Brooklyn and the Bronx. Altogether, the projects are expected to retain and create more than 620 jobs and spur more than $190 million in private investment.

"These projects in lower Manhattan, Brooklyn and the Bronx showcase the array of organizations--large and small--IDA can help expand and create jobs," said IDA chairman Andrew M. Alper. "New York Law School is a valuable asset for lower Manhattan and I'm pleased IDA will help it grow to meet the needs of its expanding enrollment. The school's $145 million investment. in lower Manhattan is a terrific boost for the local economy. The other projects approved will help four industrial companies expand operations and add valuable jobs."

New York Law School plans to build a new 337,000 s/f facility bounded by Leonard Street, West Broadway and Worth Street to be used for academic and administrative services. The project represents the first phase of an extensive campus renovation plan. IDA approved the sale of about $145 million in bonds on behalf of the school to pay for the expansion, as well as a mortgage recording tax waiver of about $4 million to help off-set financing costs. The school plans to add an additional 21 employees to its current workforce of 422 as a result of the project.

In addition, Pepsi-Cola Bottling Company of New York will receive sales tax benefits of about $1.1 million and a mortgage recording tax waiver of $694,000 to build a 214,000 s/f facility on a City-owned, seven-acre site on Brush Avenue in the Bronx. The company will pay the City about $4.3 million for the site and spend $27 million to build the new building. The project will allow the company to consolidate its distribution operations from two existing Bronx facilities, neither of which are large enough to accommodate its current growth. The company explored moving operations to a location in Elizabeth, N.J., but IDA benefits will allow it to remain in the Bronx, keeping 80 existing jobs and creating two new ones.

Montebello Food Corporation, which imports and distributes various Italian food products, plans to buy a site on Varrick Avenue in Brooklyn, demolish an inadequate structure and build a 40,000 s/f warehousing and operations facility. Over the past several years, Montebello has experienced steady growth, and its current facility in Maspeth, Queens has become inadequate. The IDA Board approved sales and real estate tax benefits of about $2.1 million to help the company expand and remain in New York City. The company plans to add 10 employees to its workforce of 30 as a result of the $8.4 million project.

Meurice Garment Care of Manhasset, a dry-cleaning company based on Long Island, will receive sales and real estate tax benefits of $877,000 and a mortgage recording tax waiver of $66,000 to buy and renovate a 12,500 s/f facility on Manida Street in the Bronx. The building will be used as its dry cleaning processing plant. The company will move its 22 employees from Manhasset to the Bronx and will create an additional 14 jobs as a result of the $2.6 million project.

LJJ, an importer and distributor of women's apparel, plans to buy and renovate a 23,000 s/f facility on Maujer Street in Brooklyn, having outgrown its existing 10,000 s/f facility in the Greenpoint section of Brooklyn. The IDA Board approved sales and real estate tax benefits of about $1.3 million and a mortgage recording tax waiver of about $81,000 to help the company expand. The $3.2 million project will allow the company to retain 17 jobs and add three more in New York City.