Mercedes Benz to construct new Rockland headquarters

Real Estate Weekly, Oct 8, 1997

"This is more tremendous economic news for Rockland County and all of New York," Governor Pataki said. "When a blue-chip company like Mercedes-Benz chooses to build its new headquarters in New York, it's more than just a practical business decision it's a symbol of excellence and faith in New York's future. Today's announcement is part of a historic reversal in New York's fortunes over the past three years. We are witnessing a turnaround in the State's business climate that has added more than 190,000 private sector jobs in the past three years after decades of job losses."

"Our practical concerns to centralize as much of our headquarters staff as possible under one roof and to minimize the impact of such a move on an employee base that we consider the best in the business were met in the overall opportunity presented by New York, which included a highly competitive package, along with an innovative, probusiness attitude," Bassermann said.

Rockland County Executive Vanderhoef said, "This is the culmination of much work with public and private partners and another pearl in Rockland's string of successes. Our county attracts and keeps companies with its business-friendly environment that fosters enterprise and success."

The headquarters, which will be built on a 9 l-acre parcel along Veteran's Memorial Drive, will serve as Mercedes' executive and administrative center for sales, marketing and support of its vehicles and parts in North America.

In 1996, Mercedes-Benz sold more than 90,000 vehicles in the U.S. for the first time ever. and is on track to better that record with more than 100,000 vehicles sold in 1997.

The company will move its jobs, including contract jobs, from its Montvale, NJ offices to Pearl River and add up to an additional 400 jobs in the next five years.

The project is expected to create nearly 700 direct and indirect construction jobs, and when fully built out, will support an estimated 1,700 jobs tied to economic activity generated by the headquarters facility and its employees. Revenues to state and local governments in the first seven years of Mercedes' operation will top $112.4 million.

"Mercedes has discovered what many other businesses already know; Rockland County and all of New York State has the workforce they need and the business climate they need to succeed," Pataki said.

In consideration of its commitment to New York, Mercedes-Benz is eligible for a $1.5 million job creation grant; a $500,000 construction grant; $10,000 per newly hired employee up to 400 employees; a $300,000 relocation grant; an $800,000 skills training grant; a $675,000 low interest infrastructure loan; and a $625,000 infrastructure grant from the Empire State Development Corp. The company also qualifies for a $520,000 loan and a $780,000 grant through the State Department of Transportation's Industrial Access Program.

The cost of the project to in terms of loans, grants and local tax abatements will be recovered in the first year through tax revenues resulting from the project, state officials said.