Release #456-00

 

Contact:	Sunny Mindel / Curt Ritter (212) 788-2958
	Gregory Miley / Janel Patterson (212) 312-3523 (EDC)

MAYOR GIULIANI ANNOUNCES CITY WILL ASSIST ARTHUR ANDERSEN
IN ESTABLISHING NYC OFFICE IN TIMES SQUARE

City’s IDA Also Helps Seven Companies to Maintain and Expand Their Operations

Mayor Rudolph W. Giuliani announced today that the New York City Industrial Development Agency (IDA) will assist the global professional services firm Arthur Andersen to expand its New York City operations at a new location in Times Square.

"Arthur Andersen is a very important member of New York City's revered professional services community," said Mayor Giuliani. "I am pleased that the IDA was able to help the company move into in the heart of Times Square. Arthur Andersen becomes the fourth company, after Condé Nast, Reuters and Ernst & Young, that the IDA has successfully assisted to establish its New York City operations within the 42nd Street Development Project area. Arthur Andersen's decision to expand its New York City operations reinforces the City's already outstanding professional services community of more than 200,000 companies and further elevates the City's position as the Business Capital of the World."

An additional seven companies in a variety of industries are also slated to receive IDA assistance for expansion in New York City, which will lead to the creation of 2,260 jobs over 19 years.

Arthur Andersen to Grow in New York City, Moving to Times Square

Arthur Andersen plans to consolidate its New York City operations at the proposed Times Square Tower (Site One), an approximately 1.2 million square-foot office development that will be constructed within the 42nd Street Development Project area by Boston Properties. Arthur Andersen will occupy approximately 500,000 square feet in the Times Square Tower to accommodate all of the firm's current 2,178 New York City-based employees. The IDA approved up to $3.5 million net present value (NPV) in sales and use tax exemptions for the firm's projected growth of approximately 1,753 new jobs over a 19-year period. Arthur Andersen will also receive discounted energy through Con Edison's Business Incentive Rate with an estimated value of $1.05 million (NPV) over a 15-year period.

"Arthur Andersen has been an integral part of the New York City business community for eighty years" said Louis P. Salvatore, the firm's interim Worldwide Managing Partner and head of its Metro New York practice. "Our people thrive on the energy and excitement that can only be found in New York, and the redeveloped Times Square area which Mayor Giuliani has fostered is a perfect fit for our rapidly growing and dynamic practice."

"The IDA assistance was a major factor in Arthur Andersen's decision to make the greater lease commitment here in New York City," said Deputy Mayor for Finance and Economic Development Robert M. Harding. "The Giuliani Administration remains committed to helping companies, regardless of size, better position themselves to stay and grow in the City."

Queens Booms With Expanding Companies

Fresh Direct is a start-up gourmet food manufacturer that will focus on direct delivery of high quality prepared food via Internet orders. With IDA's assistance, the company will undertake facility upgrade and equipment purchases at 20-30 Borden Avenue in Long Island City. Fresh Direct plans to hire 350 employees within the next three years and has been approved to receive approximately $1.779 million (NPV) in mortgage recording tax waiver and sales tax exemptions.

A. Haupt Inc., a wholesale distributor of school and office supplies, plans to acquire and renovate an approximately 14,980-square-foot building on a 15,250 square-foot property located at 54-30 43rd Street in Maspeth. The company is eligible to receive up to $250,722 (NPV) in real estate tax benefits and sales tax exemptions over a 25-year period. Currently employing 14 people, A. Haupt plans to add four new jobs within the next three years.

Complete Management Services (CMS) plans to open a Long Island City facility by purchasing and renovating a 77,000-square-foot facility at 47-22 Pearson Place. In this location, CMS plans to relocate its affiliated company Global Research Distribution (GRD). GRD currently distributes daily market research throughout the City's financial companies from a building CMS leases in Middle Village, Queens. With the relocation of its affiliated entity, CMS will retain 248 jobs and hire 62 additional employees at GRD. CMS is slated to receive approximately $3 million (NPV) in real estate and sales tax benefits over a 25-year period.

ABCO Refrigeration Supply Corporation, a wholesale distributor of refrigeration and air conditioning equipment, will receive up to $945,527 (NPV) in real estate benefits and sales tax exemptions over 25 years to improve approximately one third of its 32,000-square-foot facility in Long Island City. The improvement project will transform the facility into the company's central distribution center, enabling ABCO to consolidate its inventories and serve customers more efficiently. These improvements will enable ABCO to add 18 new employees to its current workforce of 75 within the next three years.

Manhattan Art Conservation Business and Bronx Bagel Manufacturer Expand;
Voice Communication Systems Manufacturer Establishes in the Bronx

Goldfeder/Kahan Framing Group, which specializes in art conservation and preservation and archival framing for museums and private collectors, plans to purchase an 8,000-square-foot facility in TriBeCa, Manhattan. The company currently operates from a facility in Chelsea, but will consolidate all operations into the new downtown location. Goldfeder/Kahan will receive $655,434 (NPV) in real estate tax benefits and sales tax exemption over a 25-year period. The company will add four new jobs to its current workforce of 17 within the next three years.

Roanwell Corporation manufactures a wide range of headsets, microphones, earphones and cord assemblies for commercial and military applications. The company has outgrown its current facilities in lower Manhattan and Elwood, New Jersey. Roanwell was approved to receive up to $2.42 million (NPV) in triple tax-exempt bonds and $981,446 (NPV) in real estate tax benefits and sales tax exemptions to acquire a 56,190-square-foot facility in the Port Morris section of the Bronx. Upon acquisition of the new facility, the company will consolidate operations from Manhattan and New Jersey into the new facility. The facility is located in the Port Morris Empire Zone, making it eligible for additional benefits including sales tax, wage tax and investment tax credits. The company will add 54 new jobs to its current workforce of 32.

"Roanwell Corporation is a remarkable testimonial to the top-quality products manufactured by New York City-based companies," said IDA Chairman Michael G. Carey. "Back in 1961, Roanwell developed communications equipment for the Freedom 7 Mercury Spacecraft that made the historic 15-minute suborbital flight. The company's products contributed to the successful mission that made Adm. Alan Shepard the first American to fly into space. Made in NYC products have made tremendous contributions to our local economy, as well as our precious historical and technological legacies."

Also expanding in the Bronx is Just Bagels Manufacturing. The company plans to expand its bagel manufacturing facility through the purchase and renovation of a 17,500-square-foot building located at 527 Casanova Street. The new facility will triple the company's production capacity. Just Bagels was approved to receive up to $561,109 (NPV) in real estate benefits and sales tax exemptions over 25 years. Just Bagels currently employs 45 people and expects to hire an additional 15 employees within three years. Located in the Hunts Point Empire Zone, the company is also eligible for additional benefits including sales tax, wage tax and investment tax credits.

The IDA is the City's primary vehicle for providing financing 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, not-for-profit and other qualified entities to finance expansion opportunities. The IDA also offers qualified companies abatements on sales, real estate and mortgage recording taxes.

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