Mayor Michael R. Bloomberg and Staten Island Borough President James P. Molinaro today joined Pratt Group Chairman Richard Pratt and Visy Paper NY General Manager Daryl Whitehead to sign a Letter of Intent for the construction of a converting facility next to Visy’s waste paper recycling mill in the Travis Section of Staten Island. The new plant will be part of the second phase of the project that was envisioned in 1995 to establish waste paper recycling facilities in New York City. The new facility will add 125 jobs to the 160 created by the first phase of the project. Opened in 1997, the $200 million recycling plant was the first major manufacturing facility built in New York City in more than 50 years and the first constructed under the State’s “brownfields” initiative for redevelopment of old industrial sites.  The New York City Economic Development Corporation (EDC) negotiated the agreement on behalf of the City with the assistance of the Staten Island Borough President’s office and the New York Power Authority (NYPA). 

“Today’s announcement underscores that New York City’s prospects for a hastened return to economic health are bright,” said Mayor Bloomberg. “Six years ago under the stewardship of Richard Pratt, Visy made history in New York City by opening a recycling plant to create valuable jobs, reduce waste, improve air quality and generate revenue for the City. The good sense and foresight of that decision is evident today as we move forward to the realization of the next phase of this impressive project.”

“This major expansion by Visy Paper is the latest chapter in a tremendous success story for Staten Island, the City of New York and the entire state,” said Governor George E. Pataki. “Richard Pratt and his associates at Visy have again demonstrated their commitment to New York as a great place to do business.  I look forward to continuing to work with them in carrying out this exciting new initiative that will bring the total number of jobs at the Visy site to 285 and will provide important environmental benefits.”

“The Visy plant is already a big boost to Staten Island’s economy. It currently processes 40 percent of the city’s waste paper, saving the city $25.5 million a year,” said US Senator Chuck Schumer. “Today’s agreement means the plant will deliver even greater benefits to our economy while keeping more waste paper out of landfills.”

“This is an exciting day for Staten Island and New York City, heralding the continued expansion of Visy,” said Borough President Molinaro. “I want to thank Mayor Bloomberg and Governor George Pataki for making this achievement possible, and I want to thank Visy for having confidence in New York. This expansion will provide hundreds of new jobs, and will allow the City to recycle more of its paper. This, in turn, will generate more revenue for the City at a time when we desperately need it.”

 Under the terms of the agreement signed today, Visy will invest $30 million to construct a new 100,000 square-foot facility that will take the recycling process one step further. The new plant will convert the linerboard and medium produced at the existing paper mill into corrugated sheets, boxes or other value added products.  Visy’s current contract with New York City’s Department of Sanitation will be amended to provide Visy additional waste paper to augment the 150,000 tons a year Visy already receives from the City.  In addition, Visy’s ability to purchase NYPA supplied electricity through the New York City Public Utility Service will be extended. The City has also agreed to explore with Visy Paper long-term stable energy solutions including on-site generation and other technologies designed to make the recycling process more complete.  Lastly, EDC will assist in the construction of a spur from the Travis Branch of the Staten Island Rail Road to Visy’s facilities to allow Visy to take advantage of the national rail network and reduce truck traffic. Construction is scheduled to begin in 2004 and will take about a year to 18 months to complete.

 “Ten years ago, when we first proposed bringing our vision of harvesting the urban forest to New York City, the skeptics said it was impossible,” said Pratt Industries Chairman Richard Pratt. “But the determination of our team, together in cooperation with the State, City and Borough President, proved them wrong.  We look forward to moving ahead with the second phase of our project, and continue to believe that recycling will be key to tackling New York City’s waste stream.”

 “This is an exciting project on many levels,” said EDC President Andrew M. Alper. “It will continue to generate quality, manufacturing jobs for the people of Staten Island, produce additional revenue for the City, contribute to a better environment, and promote much-needed rail improvements to reduce truck traffic, and wear and tear on our roads.”
 
“The New York Power Authority, under Governor Pataki’s leadership, is proud to have played a key role in Visy’s decision to build this outstanding new facility on Staten Island,” said Eugene W. Zeltmann, the Power Authority’s president and chief executive officer.  “We have provided low-cost electricity to Visy through the New York City Public Utility Service since 2001 and will increase our allocation to more than 20 megawatts when the new plant is complete.  Overall, our power helps to protect nearly 200,000 jobs at businesses and non-profit organizations in New York City and we are delighted that the Visy project will help to add to that total.”

“The Department of Sanitation has been in contract with Visy Paper for several years and during that time, the relationship has been mutually beneficial,” said Commissioner John J. Doherty.  “I have every confidence that Visy will continue to be an excellent partner as we expand our paper recycling deliveries.”

The Visy waste paper recycling mill consumes 380,000 tons of post-consumer waste paper each year, enough to fill 6,000 rail cars stretching 90 miles. The facility also saves the equivalent of 13,500 trees a day, and by transporting City supplied waste paper to the site mainly by barge, the Visy plant reduces traffic congestion by more than 22,000 truck trips annually.  Visy is the only recipient of City collected waste paper that actually re-manufacturers the paper in the City.  The present facility beneficially reuses about 85% of the material it receives, and with new technology Visy hopes to increase that percentage above 95%. The New York Industrial Development Agency helped finance the first Visy plant in 1995 by issuing $120 million in triple-tax exempt bonds on behalf of the company.

Visy Paper is part of Pratt Industries, a family owned international company based in Melbourne, Australia, with U.S. headquarters in Conyers, Georgia.  Pratt is the world’s largest privately held paper and packaging company with annual sales approaching $2 billion and with more than 60 locations worldwide covering all facets of the paper industry. 

The Visy Paper announcement is just one of several exciting EDC initiatives going on in Staten Island:

• EDC is spearheading a $103 million renovation of Staten Island’s St. George Ferry Terminal to be completed late 2004. The project will create an additional 12,000 square feet of retail and restaurant space, a pedestrian walkway connecting Richmond Terrace and the terminal entry.

• EDC created the Homeport Task Force made up of local elected officials, City officials and representatives from the community to develop a comprehensive plan for reusing the entire 36-acre Homeport site-capitalizing on its exceptional waterfront location and strengthening the adjoining Stapleton community. The task force has already issued a request for proposals seeking a nationally recognized planning consultant to study development opportunities along the Staten Island waterfront from the Homeport site to the St. George Ferry Terminal.

• EDC is now building on the success of Howland Hook Marine Terminal through a $500 million investment by the City, Port Authority and Army Corps of Engineers to build deeper channels, modern on-dock rail service, and a longer wharf. These improvements will generate an additional 300 jobs in five years, adding $5 million in annual tax benefits to the City and State.  Howland Hook Marine Terminal is the City’s premier deep-sea cargo port, employing more than 800 full- and part-time workers, making it the largest employer on Staten Island.

• EDC is working with the Port Authority to reactivate the Staten Island Railroad in 2005. This project will facilitate growth of the Howland Hook Marine Terminal, allow for the export of Staten Island waste by rail, and remove trucks from the borough’s busy roadways.

• EDC is developing the Bricktown Center at Charleston, a $65 million project that will bring 412,000 square feet of retail space to southern Staten Island.  As part of this project, 22 acres will be developed for active and semi-active facilities and will be known as Charleston Park. EDC will dedicate additional space for the development of a school, a senior housing center and a nursery. The project will create 500 construction jobs and 1,100 permanent jobs.

• EDC is starting the design process for an additional waterfront esplanade that will stretch from the Lighthouse museum in St. George to Stapleton. The $2.5 million project will connect to the esplanade we have already built at the minor league baseball stadium and ferry terminal.