MAYOR GIULIANI TOURS ONE OF NEW YORK CITY'S LARGEST MANUFACTURING CENTERS
Mayor Rudolph W. Giuliani today toured one of New York City's largest manufacturing centers -- a 1.5-million-square foot, state-of-the-art facility -- to highlight how the elimination of the Commercial Rent Tax (CRT) and other administration incentives have helped small businesses. The 65 businesses that are located in the Falchi Building and the Factory in Long Island City employ more than 4,000 workers and have cumulatively saved $570,000 since the Commercial Rent Tax was eliminated by Mayor Giuliani in July 1995.
"The Falchi Building and the Factory are home to the kind of businesses that make New York City the business capital of the world -- small businesses which drive the economic engine of this City," said Mayor Giuliani. "Through the New York City Department of Business Services, the manufacturing businesses here have been able to take advantage of many initiatives specifically designed to help small businesses grow and thrive.
"For example," the Mayor continued, "with the elimination of the Commercial Rent Tax, businesses across the City saved $288 million in 1997 alone. And the 65 small businesses here in the Falchi Building and the Factory have saved a total of $570,000 since 1995. And as we have so successfully experienced with the elimination of the Hotel Occupancy Tax, we've learned that when you cut taxes you stimulate job growth. Since 1994, the companies located right here have created 1,500 jobs and retained more than 1,000 others."
The Giuliani Administration has seen the creation of over 150,000 private sector jobs in comparison to the 300,000 private sector jobs that were lost under the previous administration.
The Department of Finance estimates that overall more than 21,000 small businesses will benefit from tax relief provided by the elimination of the CRT.
The Mayor pointed to other incentives that have benefited small businesses at the Falchi Building and the Factory. In fiscal year 1996, more than $300,000 in New York City Energy Cost Savings Program credits were distributed to the businesses at the Falchi Building and Factory. In fiscal year 1997, the Falchi Building received $77,000 in Real Estate Tax exemptions and has been approved for Industrial Development Agency benefits. Jewelry businesses such as Morlite Industries and A Touch of Class relocated to this facility from Manhattan, and are currently paying greatly reduced rents for more spacious quarters.
"While the businesses that make their home in the Falchi Building and the Factory have benefited tremendously from the City's incentive programs," said Deputy Mayor Rudy Washington, "the real winners are the New Yorkers who have gained jobs as a result of our business-friendly administration."
"The success of this manufacturing facility shows the importance of the Mayor's initiative on the Commercial Rent Tax and other incentives for small manufacturers that the Industrial Development Agency and the Giuliani Administration have offered." said Economic Development Corporation President Charles Millard.
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