First of NYC-Funded Industrial Projects Gets the Go Ahead
- Dec 14, 2016
New York—Greenpoint Manufacturing and Design Center, a non-profit industrial space developer in New York City, is the first recipient of a grant from the NYC Industrial Development Fund and will use the $10 million towards the $37 million renovation of a former factory in Ozone Park, Queens, into a multi-tenant manufacturing building.
GMDC, which was selected by the New York City Economic Development Corp. through a competitive bidding process, will also receive a $3.7 million loan from the NYCEDC for the project. The three-story former bicycle factory will be rehabilitated and turned into 90,000 square feet of space for up to 24 businesses with units ranging from 1,200 to 9,000 square feet. The goal is to create about 80 jobs averaging salaries of roughly $51,500 at the site once completed and leased up. During construction the project should generate 147 full-time construction jobs, according to GMDC’s analysis.
Plans call for the single-tenant building to be transformed into a modern industrial workspace for small and medium-sized industrial and light manufacturing businesses. The property will be LEED-certified, partially solar-powered and equipped with new freight elevators and electrical infrastructure.
“Now more than ever, we must ensure that our economy is diverse, equitable and provides opportunity for all New Yorkers. Supporting the industrial sector is critical to that effort,” NYCEDC President Maria Torres-Springer said in a prepared statement.
Torres-Springer said the city’s first IDF grant will help “create affordable space for small industrial businesses so that they can create good paying jobs in neighborhoods across the city.”
She noted that GMDC has a “successful record of supporting quality industrial jobs” and said the city was proud to “partner with them on this important project.”
“GMDC is grateful to have an opportunity to utilize the IDF and to have access to the loan fund,” Brian Coleman, GMDC CEO, said in prepared remarks. “Due to high acquisition costs, our project would not be possible without access to these funds. We look forward to bringing eighty jobs to a community that certainly needs them.”
GMDC has rehabilitated seven industrial buildings in New York City since 1992, providing space for small and medium-sized tenants including custom woodworkers, set builders, metal workers and home goods manufacturers. The group currently owns and manages five of the seven buildings it has renovated. The buildings are occupied by more than 100 businesses that employ over 600 people.
The non-profit developer, which is also getting a $2.1 million Empire State Development Grant for the project, estimates it will have an annual direct economic impact of $23 million to the Queens economy once completed and $45.8 million during construction.
The NYC IDF was announced in November 2015 as part of Mayor Bill de Blasio and City Council Speaker Melissa Mark-Viverito’s 10-point plan to grow industrial and manufacturing jobs. It is a $150 million public/private fund to provide financing for industrial real estate in New York City and is designed to create 400,000 square feet of new or renovated industrial workspace and 1,200 jobs by 2020. The project is funded with $60 million in public funds leveraging $90 million in private financing.