2009-09-25 / Top Stories

ABTS Stimulus Bonds Receive Approval

The Board of the New York City Capital Resource Corporation (NYCCRC) today gave preliminary approval for the allocation of Recovery Zone Facility Bonds for Arverne by the Sea LLC and Benjamin Beechwood Retail LLC to jump start the construction of the proposed retail amenities for the development.

Arverne by the Sea and Benjamin Beechwood propose to use $15 million in Recovery Bonds to finance a 55,000- square-foot supermarket and a 21,500- square-foot retail plaza.

These three projects represent more than $65 million in immediate private investment that will create approximately 860 construction and permanent jobs.

"These are exactly the types of projects the American Recovery and Reinvestment Act is intended to assist," said NYCCRC Chairman Seth W. Pinsky. "In each case, important largescale projects, stalled by the current economic downturn and lack of conventional financing, will be immediately jump-started to create much needed construction jobs and revenue for the City.

The cost to the City of these bonds is a fraction of the income the City will realize from the construction and operation of these projects. For about $500,000 in forgone income tax revenue, the City will gain over $22 million in on-going revenue."

The projects these bonds will help to finance will also bring much needed products and services to underserved neighborhoods.

The supermarket component of the Arverne by the Sea project will be the only supermarket in the area within a mile in each direction. The retail plaza will include a bank, a restaurant, a dental office, a dry cleaner, and other service providers. Together, they will also provide about 300 parking spaces.

All of these projects have indicated that they have all the required environmental and land use approvals and are on schedule to meet all Recovery Zone Bond Program timeframes.

The bonds are also to be used in connection with retail projects located in Downtown Brooklyn.

Albee Development plans to use $20 million in tax exempt bond financing to spur construction of its City Point development project.

City Point is a 1.6 million-squarefoot phased mixed-use development that is envisioned to include up to 184,000 square feet of local and national retail and 120 units of affordable residential development, and will create 328 construction jobs and 108 permanent jobs in the first phase.

Each of these projects is a component of larger, complex developments that have been unable to acquire conventional financing.

Phase 1A of the City Point development will commence in March 2010 and will be the first portion of the eventual 184,000-square-foot retail development. It will be completed March 2012.

Phase 1B fills out the retail complex, will include at least 120 units of affordable housing, and will begin construction by March 2011, to be completed by March 2014.

The financing approved today will serve to advance the entire 1.6-millionsquare foot project which will eventually encompass retail space for local and national retailers, affordable as well as market rate housing, and possibly commercial office space.

The Arverne by the Sea development project is part of the Arverne Urban Renewal Plan that has helped to stabilize the area through the addition of 800 completed housing units.

It is a public/private partnership sponsored by the New York City Department of Housing Preservation and Development.

The development will ultimately contain about 2,300 middle income residential units, of which approximately 15 percent will be designated affordable, as well as 270,000 square feet of commercial and retail space, a new 600+ seat school, and a 30,000- square-foot YMCA.

The City has nearly $90 million available in Recovery Bond Financing and will continue to consider applications as they are received. Applications for other projects will be accepted until October 12, 2009.

In addition, the Board of the New York City Industrial Development Agency today authorized an incentive package for A & L Scientific Corporation totaling up to $823,500 in real estate and sales tax benefits.

A & L Scientific, a fabricator and servicer of medical laboratory equipment, proposes to invest $1.85 million to acquire and renovate an approximately 12,000-square-foot industrial facility in Glendale, Queens.

Currently located in Crown Heights, Brooklyn, the company will expand its operations and increase its inventory and office space at the new location. It will also enable A & L to add about three new employees to its current staff of twelve.

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