MAYOR GIULIANI CELEBRATES FOUNDER'S DAY AND HAILS RETENTION OF 1,400 JOBS AT EAGLE ELECTRIC COMPANY IN QUEENS
Mayor Rudolph W. Giuliani today celebrated the 1920 founding of Eagle Electric Manufacturing Company and hailed its retention agreement with the City that keeps its 1,400 jobs in Long Island City, Queens.
"Today we not only commemorate the creation of an important New York City manufacturer, we also celebrate Eagle Electric's ongoing success and promising future in New York City," said Mayor Giuliani. "Just one month ago we forged an agreement with Eagle Electric that keeps its 1,400 jobs in New York City. This is wonderful news for Eagle Electric, its employees, their families and, of course, New York City.
"Eagle Electric plans to bring more of its manufacturing business to the City and will move a major production plant from North Carolina to Long Island City. These developments will help Eagle Electric grow and add more jobs right here in Queens. This agreement clearly illustrates that the City's smart approach to business retention is working," Mayor Giuliani concluded.
The company, one of the City's largest manufacturers, had considered consolidating operations and moving to North Carolina, but last month the Mayor announced an agreement for Eagle Electric that would allow it to stay and grow in the City.
The New York City Economic Development Corporation (EDC) will provide benefits to the company through the Energy Cost Savings Program, which could provide more than $1.6 million in additional net present value (NPV) benefits over the next 12 years. Through the Industrial Development Agency (IDA), Eagle Electric also will be exempt from paying sales tax when purchasing construction materials, equal to an 8.25 percent savings. An estimate of planned expenses is required prior to determining estimated sales tax benefits.
"The response from Mayor Giuliani and Borough President Claire Shulman continues to strengthen our resolve that we have made the right decision to stay in New York City," said Eagle Electric President Warren Cohen.
Eagle Electric's planned renovations make the company eligible for the City's as-of-right Industrial and Commercial Incentive Program (ICIP). ICIP will provide Eagle a 50 percent per year reduction in land and building taxes for an initial four-year period, followed by an eight-year phasing out period which will bring to $2.05 million in NPV savings to the company. In addition, Eagle's capital investments will make the company eligible for $1.7 million NPV in real estate tax benefits to be conferred by the IDA. Full taxes will eventually resume as the abatement is phased out at ten percent every two years.
Eagle Electric was founded on the Lower East Side in 1920 by Louis Ludwig, a Russian immigrant, and moved to Long Island City in 1941. The company manufactures approximately 4,000 varieties of electrical devices for residential and commercial use, including switches, plugs, fuses and sockets. Eagle Electric currently has distribution facilities in Charlotte, N.C., and Phoenix, Ariz., and manufacturing facilities in North and South Carolina, as well as Canada.
EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, it helps develop businesses and create jobs throughout the five boroughs.
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