NY: ESDC Board Approves Grants to Spur Investment, 637 Jobs to be Created and 2,046 Jobs to be Retained
24 May, 2011
Image via Wikipedia
Empire State Development Corporation’s Board of Directors met recently in New York City, where the board approved funding totaling more than $6 million, pledging to create 637 new jobs and retain 2,046 existing jobs in New York State. The funding will leverage over $173 million in investment across the state.
In Fiscal Year 2010–2011, the ESDC Directors approved projects to 265 companies and organizations. These projects totaled more than $488 million in grants and loans, retained 11,907 jobs and created 5,185 jobs. All grants and loans approved leveraged over $2.7 billion in investment.
The following were awarded Economic Development Fund funding:
CVS Rx Services Capital – $4,000,000 (Chemung County)
The first CVS store opened in 1963, and over the next 45 years, the business grew steadily through expansions and competitor buyouts. In 2008, CVS Rx Services, Inc. was formed as a subsidiary of CVS Caremark Corporation (“CVS” or the “Parent”), a publicly-traded company headquartered in Rhode Island. Today CVS is an integrated pharmacy services provider, combining a pharmaceutical services company with a pharmacy chain. The company considered moving its new regional distribution facility to several locations, including sites out of state. Given the high cost of constructing and equipping a new facility, CVS Rx approached ESD in early 2008 for financial assistance to establish a new warehouse distribution location in Chemung County. In 2009, ESD awarded the company a $4,000,000 grant and the company was certified in the Elmira Empire Zone. The project will create 600 full-time permanent positions at the facility. Total project cost is $120,622,000.
JetBlue Airways – $1,000,000 (New York)
JetBlue Airways recommitted to New York in March of 2010 when the airline selected New York City as the location in which to build a consolidated headquarters. The $1,000,000 grant will be used towards collaborative marketing activities between New York State’s Division of Tourism and JetBlue to grow business and promote New York State. It also marks the first time the world-renowned I LOVE NEW YORK logo has been adapted and co-branded for joint use with another entity, exemplifying the significant role JetBlue plays in travel and economic development throughout the Empire State. The co-branded mark features a deliberate intersection of the popular I LOVE NEW YORK phrase with the famous red heart and the JetBlue logo. JetBlue worked with the logo’s original creator, Milton Glaser, to ensure a design respectful of the logo’s origin while visually demonstrating that New York is at the heart of JetBlue and JetBlue is at the heart of New York. JetBlue has more than 5,000 crewmembers who work at New York airports and maintenance facilities across the State. The company will move 880 corporate jobs currently in Forest Hills, Queens and another 70 corporate jobs located in Connecticut to a single location in Long Island City, Queens by 2012. Total project cost is $19,600,000.
SCA Tissue North America MAP Capital – $485,000 (Saratoga County)
SCA Tissue North America, LLC, is owned by Svenska Cellulosa Aktiebotaget, a $13 billion consumer goods and paper company headquartered in Sweden with operations in 50 countries and over 51,000 employees worldwide. SCA has three operations in New York State including production facilities in South Glens Falls and Greenwich (Washington County) and a distribution facility in Saratoga Springs. In 2007, a five-year plan was developed by SCA Tissue North America’s senior leadership team to secure SCA’s future in New York State. In 2008, the company met with ESD to identify ways to reduce the cost of the project. The company was awarded a $485,000 grant to assist with the cost of a new converting line and the construction of a new building in which the line would operate. As a result the company will increase towel production by 14%, reduce waste and retain 286 full-time jobs. Total project cost is $14,794,000.
Marquardt Switches – $425,000 (Madison County)
Marquardt Switches, Inc., established in 1981, provides high quality, innovative switching products to the global automotive, power tool and appliance switch markets. The company manufactures automotive ergonomics switches, door latch switches, rocker switches for use in freightliners and driver authorization systems, such as key fobs or remote controlled keyless entry systems, and steering column lock modules for the automotive industry. In March 2009, ESD awarded the company $425,000 to defray the cost of the machinery and equipment and induce the company to make the investment in New York State. The project, completed in March 2011, specifically targeted new business with Chrysler and Mercedes Benz, and involved the purchase and installation of machinery and equipment necessary to achieve significant production efficiencies. New machinery and equipment included assembly line and end-of-line test equipment for Chrysler and Mercedes programs, injection molding machines, a high speed surface mount technology equipment line and several pieces of test lab equipment. The company will retain 291 employees through January 1, 2016. Currently, the company is
exceeding its employment goal employing 412 people. Total project cost is $6,150,000.
Hartford Fire Insurance Company Central New York Capital – $366,000 (Onondaga County)
The Hartford Financial Services Group, Inc. is a diversified insurance and financial services company headquartered in Connecticut. It is among the largest providers of investment products, individual life, group life and group disability insurance products, and property and casualty insurance products in the United States, with 26,000 employees and $1.7 billion in net income in 2010. Its oldest subsidiary, Hartford Fire Insurance Company’s Syracuse office, had consisted of approximately 115,000 square feet and the lease was expiring at the end of 2008. ESDC’s Directors approved a grant of up to $366,000 to be used for a portion of the cost of renovations and the purchase of machinery and equipment at their Syracuse office. The company retained 468 jobs as a result of this project. Total project cost is $12,336,000.
The mission of Empire State Development is to promote business investment and growth that leads to job creation and prosperous communities across New York State. ESD is intent on paving the way for New York State to become the leader of the innovation economy and one of the most business-friendly, productive and competitive economic development climates in the world. ESD also oversees the marketing of "I LOVE NY," the State's iconic tourism brand. Visit New York First at www.NYfirst.NY.gov for information on doing business in New York, and for more information about Empire State Development, please see www.esd.ny.gov.