MAYOR ANNOUNCES TWO MANUFACTURERS BENEFIT FROM CITY PROGRAMS
Mayor Rudolph W. Giuliani today announced incentive packages for two manufacturing companies, Dayton Industries, Inc., a Bronx manufacturer of metal and aluminum parts, and Mana Products, Inc., a Queens manufacturer and distributor of cosmetics. The agreements keep 426 jobs in New York City and will potentially lead to the creation of 120 new jobs.
Through the New York City Industrial Development Agency (IDA), the two companies will receive tax incentives from the Industrial Incentive Program and Small Industry Incentive Program, enabling them to renovate and expand their current facilities and continue to provide jobs for City residents. Mayor Giuliani created these two programs a year and a half ago to facilitate the growth and expansion of small- and medium-sized industrial companies throughout the five boroughs by offering qualified businesses tax incentives for capital projects.
The Giuliani Administration developed the Industrial Incentive and Small Industry Incentive Programs because most smaller companies cannot afford the costs associated with traditional retention agreements, which are aimed at larger companies. To date, these programs have helped 22 industrial companies undertake $56 million in capital projects, retaining 2,908 jobs. The City also projects the creation of an additional 761 jobs as a result of these 22 agreements.
"These incentive programs were designed to encourage the growth of our manufacturing industry, and Dayton's and Mana's decisions to stay in the City show that they are working," Mayor Giuliani said. "These agreements are evidence that manufacturing companies can and do thrive in New York City."
"Mayor Giuliani has directed the IDA to expand its outreach to large and small manufacturers so that manufacturing will continue to play a positive role in the City's economy. Dayton and Mana provide important jobs for New York City residents, and we are pleased they will continue to do so for years to come," said New York City Economic Development Corporation (EDC) President and IDA Chairman Charles Millard.
Mayor Giuliani directed EDC to aggressively market these incentive programs to local development organizations and financial intermediaries such as commercial banks, as well as through direct mail and industry seminars. In addition to today's two transactions, the City expects to complete at least four more by the end of this fiscal year. Dayton and Mana became aware of these programs as a result of EDC's outreach to local business organizations.
DAYTON INDUSTRIES, INC.
With assistance from tax incentives provided through the City's Small Industry Incentive Program, Dayton Industries will purchase a new building at 1351 Garrison Avenue in Hunts Point for its product packaging and warehousing divisions. Dayton will make significant improvements to the new building, including replacing the roof. The company will also purchase a new lift truck and metal storage racks for the new facility. The total estimated cost of the project is $438,000 and the new building should be ready by June.
Dayton had considered consolidating its operations in Stamford, Connecticut, but learned of the City's Small Industry Incentive Program through EDC. The company will receive Small Industry Incentive Program benefits, including a land tax abatement, reduced stabilized building taxes and a mortgage recording tax waiver over a period of 25 years for an estimated total of $157,000 (net present value).
"We are very pleased that we will remain and grow in the Bronx, where we have been located for more than 50 years," said Fred Collins, President of Dayton Industries. "With the City's help, we will be able to expand our facilities and our number of employees."
The Small Industry Incentive Program allows small industrial businesses with gross revenues of less than $5 million per year and less than 100 employees to obtain significant sales and other tax incentives without the cost of bond issuance.
Dayton currently employs 40 people and projects the creation of six new jobs within three years. The company manufactures aluminum and stainless steel parts, used mainly in the hollow metal door industry and the electrical industry. Under the name of Victor Specialties, the company also produces its own product line of metal clamps, straps and hangers.
MANA PRODUCTS, INC.
Mana Products, Inc., a cosmetics manufacturer and distributor in Long Island City, Queens, had considered purchasing a building in New Jersey that was in move-in condition. EDC introduced the company to the IDA's Industrial Incentive Program, which will enable the company to stay in Queens. Through this program, the company will receive a mortgage recording tax waiver, a land tax abatement, reduced building taxes, and sales tax exemptions of approximately $1.2 million (net present value) over the next 25 years. These benefits will allow Mana to remain at its current location at 32-02 Queens Boulevard in Long Island City.Mana plans extensive renovations for the entire building, including the installation of a new elevator, new windows, an HVAC and Fire Sprinkler system, roofing improvements and bathrooms. Mana also has plans to acquire a new warehousing and distribution facility for expansion in the future. The total estimated cost of the project is $4.6 million.
The Industrial Incentive Program provides incentives for capital investment through various tax exemptions for industrial companies with annual gross revenues in excess of $5 million per year or that have more than 100 employees.
"The City has worked with us to keep our operations in Long Island City, and retain our staff, most of whom are New York City residents," said Nikos Mouyiaris, President of Mana Products. "Mayor Giuliani's commitment to the future of the manufacturing industry encouraged us to remain and grow in New York City."
Mana Products is a developer, manufacturer and distributor of face and skin care products for retailers and wholesalers and is a private label manufacturer. The company was founded in New York City 21 years ago and manufactures products for such stores as Neiman Marcus, Saks Fifth Avenue, Rite Aid and Kmart.
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