IDA incentives, land sales aid Brooklyn industrial firms.

Mayor Rudolpfh W. Giuliani has announced the sale of four parcels of City owned land located in the East New York In-Place Industrial Park in Brooklyn to local industrial companies. Three of the four companies will also receive benefits from the New York City Industrial Development Agency (IDA) to help them expand their businesses.

The four companies - Sarad Inc., Federal Jeans Inc., Watkins Poultry Merchants of New York, and Hulk Rigging and Hauling Inc. - were selected to develop the properties as the result of a request for proposals issued by the New York City Economic Development Corporation (EDC) on behalf of the City last Spring.

"The transactions we are announcing today are a testimony to the success of our efforts to build on East New York's progress and to enhance the quality of life and business environment in that community," said Mayor Giuliani. The East New York Industrial Park is now home to approximately 100 businesses that employ more than 2,000 workers."

In 1997, Mayor Giuliani initiated the East New York Action Plan to promote public and private commercial and residential development in the area. The Plan has resulted in dramatic reductions in crime, cleaner streets and improved recreational facilities and schools, as well as new housing - including market-rate, low-income and senior citizen housing.

The 40-block East New York Industrial Park has excellent accessibility, attracts a large' and diverse labor pool, and has a variety of amenities. It is also is within a New York State Economic Development Zone, making businesses located there eligible for business wage, sales and investment tax credits.

"These transactions are terrific examples of how the City works with small and mid sized companies to help them grow and stay in New York," said Michael G. Carey, president of the EDC and chairman of IDA. "I am especially pleased that IDA benefits were instrumental in bringing three of these projects to fruition. As a result, 168 new jobs will be created for New Yorkers.

Sarad Inc., a wholesale distributor of auto parts for fleet vehicles, has purchased 27,500 square feet of vacant land on Glenmore Avenue. Sarad will build a 20,000 square-foot wholesale, distribution and administration center. The IDA will provide Sarad with $742,362 net present value (NPV) in mortgage recording tax waivers, payments in lieu of real property taxes, and sales tax exemptions over 25 years. Sarad employs six people and will add another 15 jobs as a result of the expansion.

Federal Jeans Inc. will expand its operations in the East New York Industrial Park by purchasing three parcels of land totaling 85,000 square feet adjacent to its property on Pitkin Avenue. Federal Jeans, a wholesale distributor of denim garment products, will construct a new 70,000 square-foot facility plus a 5,000 square-foot addition to its existing facility. IDA assisted in the transaction by providing $2.1 million (NPV) in benefits over 25 years, including a mortgage recording tax waiver, payments in lieu of property taxes and sales tax exemptions. Federal Jeans employs 46 workers and expects to add approximately 140 more over the term of the deal.

Watkins Poultry Merchant of New York, a wholesale poultry distributor, purchased a third parcel of land. Watkins will combine the 52,000 square-foot parcel with its 5,600 square feet of adjacent property to construct a 25,000 square-foot building and a 30,000 square-foot delivery staging and parking area. The company is located in three buildings an Watkins Street in the Brownsville section of Brooklyn. Upon construction of its new facilities, Watkins will lease two of the Watkins Street buildings and use the third as a retail stare. The company expects to add 13 jobs to its current workforce of 17 over the next three years. It will receive IDA benefits worth $924,115 (NPV) over 25 years in mortgage recording tax waiver, payments in lieu of real property taxes and sales tax exemptions.

Hulk Rigging and Hauling Inc. purchased a 5,000 square-foot site adjacent to a 5,000 square-foot lot previously purchased from EDC. The company plans to move its operations, currently located near the Brooklyn Navy Yard, to the East New York site to expand its warehouse, crating and shipping division. Hulk Rigging is a rapidly expanding masonry construction and steel building erector. Established in 1980, the company is involved in the relocation of artifacts and sculptures and machinery moving, and is a manufacturing facility relocation specialist.

EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, EDC helps develop businesses and create jobs throughout the five boroughs. EDC is also responsible for the sale and leasing of City-owned land for economic development.

The IDA is administered by EDC and provides assistance to businesses, including small industrial and manufacturing companies. It is a conduit agency that issues tax-exempt industrial revenue bonds that assist eligible industrial, commercial and not-for-profit entities to finance expansion opportunities. IDA also offers qualified companies abatements on sales, real estate and mortgage recording taxes, and offers reduced energy costs.