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Sweet Government Subsidies Keep Fresh Direct In NYC
By
Garth Johnston
Published Feb 7, 2012
Modified Feb 7, 2012
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By
Garth Johnston
Published Feb 7, 2012
Modified Feb 7, 2012
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Though for a second it looked like it might move to New Jersey, the popular grocery delivery service Fresh Direct is staying in town. Governor Cuomo, Mayor Bloomberg and Bronx Beep Ruben Diaz Jr. today announced that, thanks to some hefty financial incentives from the city, state and borough, FD is moving from Long Island City to the Bronx. And it's planning on adding 1,000 jobs or so in the next few years to boot.
"Fresh Direct is a home-grown success that will now continue to grow and create jobs in New York," Governor Cuomo explained in a statement. "Creating almost a thousand new jobs is a real victory for the Bronx and a clear sign that leading New York companies see this state as the place to start, stay and strengthen their businesses." Of course, to add those jobs, the company is getting $130 million in grants, tax breaks and tax credits (compared to the $100 million the Garden State was offering). Presumably the city will make up some of that money with the stream of parking tickets the company's trucks rack up daily?
Right now FD has 1,963 "full-time equivalent" employees and it hopes by the summer 2012 to have 2,927 of them. The company's new 500,000-square-foot home in the Hudson River Rail Yards is expected to open in 2013.
Of course, not everyone is happy about the news. Bettina Damiani, of the watchdog group Good Jobs New York, complained to the News today that "The company delivers to few Bronx neighborhoods and pays 38% of its workers less than $25,000 a year."
Meanwhile, in case you were curious, here's the full breakdown of the benefits the company is getting out of this deal:
New York State:
· $18.9 million in Excelsior tax credits (ESD)
· $9 million capital grant (ESD)
· $4 million in energy grants and incentives (NYPA/NYSERDA)
· $1 million loan (ESD)
· Up to $1 million in vouchers for the purchase of electric vehicles (NYSERDA)
New York City:
· Approximately $74 million in sales tax exemptions, mortgage recording tax deferral, and real estate tax exemptions pending approval (NYCIDA)
· $9.5 million to acquire assets to be used at the new facility at Harlem River Rail Yards pending approval (NYCIDA)
· $4.9 million in energy benefits (NYCEDC)
· $1 million loan (NYCEDC)
Bronx Borough President:
· $1 million capital grant
Bronx Overall Economic Development Corporation:
· $3 million loan
· $500,000 capital grant
Tagged
bronx
fresh direct
long island city
new york state
the bronx
Garth Johnston
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