Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Thursday, September 16, 1999

Release #362-99

CONTACT: Sunny Mindel/Curt Ritter 212-788-2958
Bernadette O'Leary (EDC) 212-312-3523


MAYOR GIULIANI ANNOUNCES FIVE COMPANIES TO EXPAND IN NEW YORK CITY WITH HELP FROM INDUSTRIAL DEVELOPMENT AGENCY

Mayor Rudolph W. Giuliani announced today that the New York City Industrial Development Agency (IDA) has agreed to assist five companies and organizations in expanding their operations, bringing 846 new permanent jobs to the City. Among the companies is publisher and direct marketer International Masters Publishers, Inc. (IMP), which plans to relocate its Stamford, Connecticut headquarters to Manhattan.

"As our economy continues to boom, the City maintains our commitment to helping a wide range of companies to establish themselves and expand here through the use of IDA programs," said Mayor Giuliani. "The five companies approved for IDA assistance range from a book and music publisher to a picture frame manufacturer to a not-for-profit group that plans to restore one of Manhattan's historic amphitheaters. The scope of these projects demonstrates the IDA's contribution to many aspects of the City's economy."

The IDA has successfully recruited International Masters Publishers, Inc., (IMP), the U.S. subsidiary of a Swedish publisher and direct marketer of books, music compilations and educational products, from Stamford, Connecticut, to Manhattan, the capital of the publishing industry. IMP will relocate all of its 234 jobs to a 75,000-square-foot facility in the Gramercy Park area, and the company projects that it will add 403 additional jobs over a 17-year term. The company has been approved to receive an incentive package of $1.29 million net present value (NPV) consisting of sales tax exemptions for tenant improvement and equipment expenses, as well as discounted energy benefits.

"IMP's decision to move to Manhattan reaffirms that New York City is the publishing capital of the world," said Randy Levine, Deputy Mayor for Economic Development, Planning and Administration. "And with incentive agreements such as this one that are 100 percent tied to job recruitment and growth, the City is making a wise investment by adding jobs and increasing revenue."

The Pavilion Group, Inc. (PGI), a newly-formed, not-for-profit organization, plans to restore and maintain the East River Park Pavilion, an outdoor amphitheater east of the FDR Drive in lower Manhattan, that was originally constructed in 1941. In disrepair since 1971, the amphitheater will be renamed the Corlears Hook Pavilion, and will contribute 172 full-time jobs and 198 seasonal jobs to the City.

PGI is slated to receive approximately $24 million in triple tax-exempt IDA bond financing to assist with the restoration project. Upon completion, Corlears Hook Pavilion will include a 2,000-seat outdoor amphitheater, an indoor music and event hall, a 200-seat riverfront restaurant and a 100-seat caf‚ with outdoor seating. The entire project, including new landscaping, is anticipated to be open in summer 2001.

"Rich in New York City history, the site was the original location for Shakespeare in the Park performances in the 1950s and 1960s," said IDA Chairman Michael Carey. "With the powerful financing capabilities of the IDA, we are now able to rejuvenate the pavilion for New Yorkers to enjoy in a very cost-effective way."

A second not-for-profit organization, MJG Nursing Home Co., Inc. in Brownsville, Brooklyn, is slated to receive assistance in renovating its 529-bed nursing facility. Founded in 1907 and previously known as the Metropolitan Jewish Geriatric Center, the home offers long-term residential care, subacute care and palliative care services, and employs 632 full-time and 138 part-time employees.

MJG is slated to receive approximately $14 million in triple tax-exempt bond financing and a mortgage recording tax waiver to refund a New York State Housing Finance Agency (HFA) bond agreement. By doing so, MJG will also rid itself of covenants under the HFA agreement that barred a cost-effective issuance of future debt. MJG expects to issue additional debt with the IDA to modify its aging facility. MJG is licensed by the New York State Department of Health and is accredited by the Joint Commission on Accreditation of Healthcare Organizations.

Two companies received approval for IDA assistance to expand in Queens, which will create approximately 77 new jobs over the next 25 years.

Rapidly growing dry-cleaning supply distributor Cleaners Products Supply Co. Inc, plans to add a 4,000-square-foot addition to its 10,000-square-foot facility at 50-45 Barnett Avenue in Sunnyside. Slated to receive approximately $439,000 (NPV) in real estate tax benefits and sales tax exemptions over a 25-year period, Cleaners Products will consolidate its operations with those of a related company located in Philadelphia, and will employ a total of 45 workers over the term of the agreement.

Picture frame manufacturer Perfect Art has also outgrown its facility and plans to move its production operations to a 50,000-square-foot space at 58-29 48th Street in Maspeth. With plans to purchase and renovate the new facility, Perfect Art is slated to receive approximately $736,380 (NPV) in real estate tax benefits and sales tax exemptions over 25 years. The company currently employs 40 people and plans to add 35 new jobs over the term of the agreement.

The IDA is the City's primary vehicle for providing assistance to businesses, including small industrial and manufacturing companies. The IDA is a conduit issuer which issues tax-exempt industrial revenue bonds that assist eligible industrial and not-for-profit organizations to finance expansion opportunities. A broader range of companies may also qualify for abatements on sales, real estate and mortgage recording taxes and reduced energy costs.

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