Contact: Sunny Mindel/Curt Ritter 212/ 788-2958
Bernadette O'Leary 212/ 312-3523 (EDC)
Mayor Rudolph W. Giuliani today announced that the New York City Industrial Development Agency (IDA) has agreed to assist five companies in expanding their operations in New York City. Two of the companies, Ahava Dairy Products Corp. and Klein's Natural Ltd., are food manufacturers located within Brooklyn economic development zones. The five agreements will help to retain 115 jobs and lead to the creation of approximately 80 new jobs.
"The City's Industrial Development Agency has gotten off to a strong start in the new millenium by helping a broad range of companies to increase and improve their operations here," said Mayor Giuliani. "This month we are assisting food companies, a major hospital and a hosiery manufacturer."
Dried fruit and nut manufacturing company Klein's Natural Ltd. plans to expand its Brooklyn operations by moving from leased warehouse space to a 33,000-square-foot facility that it will purchase at 4702 Second Avenue in Sunset Park in the East Brooklyn Economic Development Zone. Klein's employs 25 workers and plans to add three new employees over the next three years. Klein's has been approved to receive approximately $584,926 in sales tax exemptions and real estate tax benefits over 25 years.
Brooklyn-based kosher dairy product manufacturer and distributor Ahava Dairy Products Corp. plans to purchase and renovate a 57,144-square-foot building at 744 Clinton Street in Brooklyn. Located within the Southwest Brooklyn Economic Development Zone, the new facility will allow Ahava to produce items on-site which it previously imported, such as mozzarella and string cheeses. Ahava currently employs 33 workers and plans to add 67 new jobs over the next three years. The company is slated to receive approximately $6 million in real estate tax benefits and sales tax exemptions over the next 25 years.
"Last year, the IDA agreed to assist 71 companies in expanding throughout the five boroughs," said IDA Chairman Michael Carey. "These projects will lead to $1.8 billion in private sector investment, which will create approximately 4,432 new jobs over the next three years. I expect the IDA to generate even more activity this year."
The New York and Presbyterian Hospital, a not-for-profit acute care hospital, plans to purchase and install medical equipment at its 525 East 68th Street campus and to refinance existing equipment leases at its 622 West 168th Street campus. Employing more than 14,000 workers in New York City, the Hospital offers care for adults and children and also serves as the primary teaching affiliate for Cornell University. The Hospital is slated to receive approximately $6 million in equipment financing.
Hosiery manufacturer Goldstone Hosiery Co. Inc. plans to purchase, renovate and move to a 52,000-square-foot building at 48-25 Metropolitan Avenue in Maspeth, Queens. The 24-year-old family-run business will also maintain its Manhattan showroom at 10 West 33rd Street where it displays products including pantyhose, tights and socks. The company currently employs 22 workers and plans to add four jobs within three years. Goldstone is slated to receive approximately $480,000 in sales tax exemptions and real estate tax benefits over 25 years.
Long Island City, Queens-based Up Town Electric, Inc. has outgrown its current facility and plans to move to a 12,000-square-foot building at 5-48 46th Road in the same neighborhood, which it will purchase and renovate. With services including wiring computers and assembling light fixtures, the commercial electrical parts manufacturer employs 35 people and expects to add six more workers in three years. Up Town has been approved to receive approximately $298,000 in sales tax exemptions and real estate tax benefits over a 25-year period.
The IDA is the City's primary vehicle for providing assistance to businesses, including small industrial and manufacturing companies. The IDA is a conduit agency that issues tax-exempt industrial revenue bonds that assist eligible industrial and not-for-profit entities to finance expansion opportunities. The IDA also offers qualified companies abatements on sales, real estate and mortgage recording taxes and reduced energy costs.