City approves money for manufacturers

Real Estate Weekly, Oct 2, 2002

Andrew M. Alper, chairman of the New York City Industrial Development Agency (IDA) and president of the New York City Economic Development Corporation (EDC), announced that the IDA approved financing for two manufacturers and two not-for-profit organizations at its September 2002 meeting. These four new transactions will keep 549 jobs and create 131 new ones for New York City.

Manufacturers Expand Operations in the Bronx and Queens

Katz Metal Fabricators is a manufacturer of sheet metal components. The company has been approved to receive approximately $1.5 million NPV (net present value) in real estate tax benefits and sales tax exemptions over 25 years for the purchase of a parcel of land at 434 East 165th Street, adjacent to its facility in the Morrisania section of the Bronx. Katz plans to expand its operations by constructing a 20,000-square-foot facility to house new computerized machinery. The IDA also approved a mortgage recording tax waiver of $66,000 for the company, which has 36 employees and plans to add 17 more over three years.

Peter Cosola Inc., established in 1997, is an architectural renovator that specializes in millwork manufacturing of moldings, facades, docks and cabinets. The company will receive approximately $2 million NPV in real estate tax benefits and sales tax exemptions over 25 years for the acquisition of a 13,000-square-foot facility at 4557 Davis Street in Long Island City, Queens to accommodate its growing business. The company employs 28 people and will add 10 more within three years.

Not-for-Profits Make a Greater Impact in Brooklyn, Manhattan and the Bronx

Urban Resource Institute is a not-for-profit provider of social services to Inner City residents established in 1980. URI creates and administers programs for people with mental disabilities, provides job training and placement for young adults, oversees homeless shelters, develops and manages drug and alcohol addiction recovery programs and provides services to victims of domestic violence.

URI plans to purchase and renovate two buildings to create 64 apartments for victims of domestic violence and provide meeting and office space to accommodate support programs. URI has been approved for approximately $9.8 million in tax-exempt bonds to refinance the purchase and renovations of these buildings. The project includes a 36,000-square-foot building at 1011 Ocean Avenue in the Flatbush section of Brooklyn, and a 20,000 square-foot building at 539 West 152nd Street in Manhattan. The organization has 214 employees and plans to add 12 more within three years.

Vocational Instruction Programs Community Services is a community-based not-for-profit agency that provides assistance to adults who suffer from substance abuse and alcohol dependency. Services include HIV/AIDS prevention, medical treatment and educational and vocational training.

VIP will receive approximately $9.5 million in tax-exempt bonds for the acquisition and renovation of the building it currently leases at 1910 Arthur Avenue in the Bronx. Renovations will include elevator replacement, masonry work and the update of the water and heating systems. The organization will also receive a $258,000 mortgage recording tax waiver. VIP currently has 271 employees and hopes to add 92 over three years.