City's IDA approves financing for Harlem auto dealership

Real Estate Weekly, June 25, 2003

New York City Industrial Development Agency chairman Andrew M. Alper announced that Potamkin Development Co. LLC has been approved for NYCIDA financing assistance to build a multi-dealer auto mall in East Harlem* its June meeting, the NYCIDA Board also approved assistance for two bakeries to help them expand their manufacturing facilities, and a liquor importer seeking to expand and renovate warehouse space. Two private schools in Brooklyn will also receive assistance to refinance or rebuild facilities.

"The transactions approved today represent nearly $62 million in private capital investment and more than 1,000 jobs for the City of New York," said Alper. "The jobs created by the Potamkin project are particularly significant because they are highly-skilled positions with excellent training and potential for advancement. I am also pleased that we were able to assist two highly regarded private schools to increase enrollment and expand curriculum and services for their students and communities."

Potamkin Development Co. LLC was approved for $21 million in tax-exempt Empowerment Zone Facility Bonds for the acquisition of 101,000 SF of city-owned land on the block bounded by 127th and 128"' Streets and Second and Third Avenues. Potamkin plans to construct an approximately 200,000-SF auto mall. The total cost of the project is estimated to be $25.3 million. It will create 500 jobs during construction and 125 permanent jobs. A portion of the facility, to be called the Potamkin Harlem Auto Mall, will be leased to Potamkin automobile dealerships. Potamkin plans to lease the balance of the space to other auto dealerships. With 63 franchises, the Potamkin family owns one of the 10 largest automobile retailing companies in the United States.

Dufour Pastry Kitchens Inc. was approved for about $946,000 in real estate and sales tax benefits in connection with the purchase of 7,500 square feet of land and construction of a 15,000-SF building at 12 1St Street and Park Avenue in Harlem. The company may also qualify for energy benefits valued at about $70,000 from the Business Incentive Rate and the City's Energy Cost Savings Programs. Cost of land acquisition and construction is estimated at $2.3 million. The company faces a steep increase in rent at its current location in Manhattan and has looked at several sites in New Jersey that offer lower operating costs and convenient access to its clients, but prefers to remain in the City. With NYCIDA assistance, the bakery will be able to relocate to Harlem. Dufour specializes in frozen hand-made hors d'oeuvres, tart shells, sweets and pastry dough which it supplies to restaurants, hotels, gourmet shops, cafes and caterers in New York City and 41 distributors nationwide. The company estimates that it will a dd nine employees at the new location in addition to the 35 workers it currently employs.

Umanoff & Parsons Inc., a producer of high quality baked goods, was approved for about $973,000 in real estate and sales tax abatements to assist in the purchase of previously city-owned property on an adjacent parcel of land at 12 Street and Park Avenue. The company plans to build a 20,000 square-foot building to expand and consolidate its business now located in Greenwich Village and New Jersey. Umanoff plans to invest $2.3 million in the project. The company may also qualify for $70,000 of discounted energy over 10 years through the Business Incentive Rate and the City's Energy Cost Savings Program. The company currently employs 33 people and expects to add another nine jobs as a result of this expansion.

Peerless Importers Inc. is slated to receive about $12 million in real estate and sale tax exemptions for the expansion of its warehouse and distribution facilities in Brooklyn. The company, an importer and wholesale distributor of alcoholic beverages, serves New York City, Long Island and Westchester. Peerless was recently authorized to distribute a number of new brands and needs to expand its facilities. NYCIDA assistance will help the company construct additional warehouse and office space, renovate existing warehouse space, and purchase machinery and equipment.

In addition, the NYCIDA Board approved up to $7.5 million in triple-tax exempt bonds for the Brooklyn Heights Montessori School to refinance several projects. In 1991, the school received NYCIDA financing assistance to purchase and renovate a building on Court Street and another on Bergen Street. In 1996, NYCIDA helped the school to acquire an additional building on Bergen Street and to consolidate a larger facility on the properties on Bergen and Court Streets.