IDA approved $8.6 million in real estate and tax benefits for the first two supermarkets under the recently-created FRESH program. On February 9, 2010, the New York City Industrial Development Agency, a component of the City’s Economic Development Corporation, approved tax incentive packages to assist in the development of two new Bronx supermarkets. The financial incentives are the first awarded under the City’s Fresh Retail Expansion to Support Health (FRESH) program approved by the City Council in December 2009. The City created the FRESH program to provide zoning and financial incentives to encourage the development of supermarkets in areas identified as being under-served by stores offering a full range of fresh produce, meats, and dairy products. 6 CityLand 152 (Nov. 15, 2009).
The IDA awarded $3 million in real estate and tax benefits to Foodtown Supermarkets in order to build a new grocery store at 283 East 204th Street in the Norwood section of the Bronx. The 11,000 sq.ft. store will replace a 7,500 sq.ft. store destroyed by a fire in December 2009. The IDA approved incentives consisting of payments in lieu of City real property taxes, exemptions from City and State mortgage recording taxes, and exemptions from City and State sales and use taxes. (read more…)
Announcement comes about three months after Thor Equities failed to close on the same parcel. On October 15, 2008, the NYC Economic Development Corporation announced that it entered into a property acquisition agreement with Ward Realty Corp. for the purchase of a one-acre site in the amusement core of Coney Island, Brooklyn. The site, located within the nine-acre area that the City has designated to be parkland, is the current home of the Wonder Wheel Amusement Park.
Until about three months ago, Ward Realty Corp. expected Thor Equities to acquire the property. However, when it came time to close, Thor expressed its desire to renegotiate the contract, and the parties failed to reach an agreement. Shortly thereafter, EDC agreed to purchase the site for the same price Thor originally agreed to pay, approximately 11 million dollars. (read more…)
Comptroller asserts that insufficient oversight could cost City $6.1 million. A June 2008 audit by City Comptroller William C. Thompson concluded that New York Skyports, Inc. violated its lease agreement for a two-acre City-owned East River site, creating a potential cost of $6.1 million to the City.
Originally executed with the Gulf Oil Corp in 1959, the lease allowed the construction of a parking garage over the East River and the additional use of the two-acre parcel – running along the East River from East 18th to East 23rd Streets in Manhattan – for a seaplane operation, marina, gas station, and a plane, boat and auto repair facility. In exchange, the lease entitled the City to annual rents and 50 percent of all gross revenue from sales and advertising. Starting in 2002, several City inspections revealed needed repairs. In 2006, an inspection revealed issues with the garage’s structural support. In 2007, the City stepped in, spending $464,000 to install temporary shoring to support the floating garage. (read more…)
EDC failed to charge $511,500 in allowable rent and used City water and sewer services without paying. On June 6, 2008, City Comptroller William C. Thompson issued an audit report on the New York City Economic Development Corporation’s lease of the Brooklyn Army Terminal, concluding that it failed to charge Turner Construction Company $211,500 in allowable rent and lost $300,000 by charging some sub-tenants less than market rate rent. Also, EDC has not paid the City for water and sewer use at the Army Terminal since it took over in 1986 and has neglected to pass on those costs to its sub-tenants. The audit concluded, however, that EDC had complied with the major terms of its lease, paying its rent on time, submitting correct security deposits, and maintaining proper insurance coverage.
The City leased the 4-million-square- foot Army Terminal to EDC in 1986, making it responsible for its conversion into an industrial park and requiring payment to the City of 100 percent of the net operating income once EDC subleased it. EDC has renovated 3.1 million sq.ft. and has subleased space to 70 companies. (read more…)
Gourmet Guru to invest $4.9 million. On May 13, 2008, the New York City Industrial Development Agency awarded public subsidies to Gourmet Guru, a ten-year-old food-related company located at 660 Casanova Street, between Spofford and Randall Avenues, in the Hunts Point section of the Bronx.
Gourmet Guru specializes in the wholesale distribution of organic and specialty foods, development and manufacturing of branded food products, and marketing and brokerage services. The company began its operations in a 1,000-square-foot facility in Hunts Point, but was looking to expand and even considered moving its headquarters to New Jersey to save costs. (read more…)