The statewide Regional Economic Development Council (REDC) Progress Tour continued in New York City today, where Lieutenant Governor Robert J. Duffy joined with state officials and NYCREDC members for a firsthand review of the progress and economic impact being made by the projects in the region.
This is the tenth visit in the REDC Progress Tour that is part of a review of last years strategic economic development plans and job-creating projects.
Following these tours, the New York City REDC provided a formal presentation outlining the progress they have made in advancing last year's strategic plans and projects, as well as their endorsed projects for the coming year to the Strategic Implementation Assessment Team (SIAT) at Steiner Studios in the Brooklyn Navy Yard.
Through our new regionally-targeted approach to economic development, New York State is energizing and empowering individual areas with the tools to design plans that make sense and produce results for their local economies, Governor Cuomo said. Over the past year, as the Regional Council in New York City has put their plan to work, we have seen innovation and entrepreneurship come to life, and as a result, it is creating jobs and growing their economy.
Governor Cuomo created Regional Councils to serve as the new approach our state needs to create new jobs and economic opportunities, said Lieutenant Governor Duffy. Today is an exciting opportunity to witness the incredible progress that the Regional Council is making in New York City, as well the steps we are taking to build on that success for the coming year.
Last year, the New York City Regional Economic Development Council developed a strategic plan proposing support for investments in key industry clusters to encourage business vitality and job creation, said Matthew Goldstein, Regional Council Co-chair and Chancellor of The City University of New York. Thanks to the exemplary leadership of Governor Cuomo, Lieutenant Governor Duffy, and the work of our Council members, we are now implementing an action plan to promote greater economic opportunity and the growth of the workforce.
The Lieutenant Governor visited the following project site:
Brooklyn Navy Yard Steiner Studios Media CampusThe nonprofit Brooklyn Navy Yard Development Corporation (BNYDC) is partnering with the City University of New York (CUNY) and a private developer, Douglas Steiner, to convert the underutilized naval hospital annex at the Brooklyn Navy Yard, which has been vacant for nearly three decades, into a hub for media, technology and film related businesses. The project, phase three of a five phase development, includes the construction of nearly 100,000 square feet of new soundstages to meet the critical demand in New York for space to shoot television shows and commercials, and the first New York City outdoor streetscape backlot. This will support increased tourism in the area and significantly ease disruptions in city neighborhoods heavily used for film and television shoots. The project will ultimately enable over 460,000 square feet of new space to be built for academic partners and media companies in renovated historic structures and new buildings.
BNYDC has requested State funding for the $110 million project through the NYCREDC in a 2012 CFA, and has been designated by the REDC as a priority project. This phase of the project has the potential to create 600 full-time permanent jobs and 750 construction jobs. Future development of the site will involve over $270 million of additional investment and generate nearly 2,000 full-time jobs and more than 1,800 construction jobs.
Additionally, the Lieutenant Governor reviewed presentations on the progress being made on the following projects:
Green Manufacturing CenterThis 2011 priority project consists of the adaptive reuse of three former WWII-era Navy machine shops into a state-of-the-art industrial complex, creating nearly 300 new permanent jobs and approximately 400 construction jobs. The Brooklyn Navy Yard Development Corporation (BNYDC) is investing $60.3 million into Brooklyn Navy Yard buildings 28, 123 and 128 to create the Green Manufacturing Center a 215,000 square foot multi-tenanted, LEED-certified facility. BNYDC has received $18 million in State support for the project, including $6 million in grant funds and $12 million in a New Market Tax Credit allocation. Two anchor tenants have been identified for the building: Crye Precision and Macro Sea.
Macro SeaMacro Sea, Inc. plans to convert two wings of the Brooklyn Navy Yards Green Manufacturing Center into New Lab, a facility that promotes collaboration between design and fabrication. As an anchor tenant, Macro Sea will transform 48,500 square feet of this space and another 30,000 square feet of newly constructed mezzanine space into a high-tech design and prototyping center that will enhance the BNYDC's initiative to become a national model for sustainable industrial parks. The project will result in 150 construction jobs and 410 new jobs while advancing the NYCREDCs strategies of generating new high-tech manufacturing jobs through partnerships between business and universities, and contributing to development of innovation industry clusters. Macro Sea has requested State funding through a 2012 CFA for the $23 million project, which has been endorsed by the REDC as a priority for this year.
Crye PrecisionCrye Precision is a premier designer and manufacturer of body armor and apparel for the U.S. military as well as federal and state law enforcement agencies. The company was a 2011 priority project and awarded $1 million in Excelsior Tax Credits to become one of two lead tenants at the new Green Manufacturing Center. Crye currently operates in four separate spaces at the Navy Yard, with 110 employees, and will now lease 80,000 square feet, consolidating multiple sites into one central location. Crye decided to expand in the Navy Yard after considering numerous options for consolidation and expansion, including New Jersey. The companys expansion into the Green Manufacturing Center will create 75 new jobs over the next five years. Crye also has several commercial product lines under development; one uses locally recycled materials that are converted into fabrics.
Duggal Visual SolutionsDuggal Visual Solutions has been in business for 50 years and is the largest manufacturer and supplier of print, computer imaging, wide-format graphics, and display services in the United States. The company is looking to develop and equip an additional 60,000 square feet at the Brooklyn Navy Yard for manufacturing, with a projected capital investment of over $11.2 million. The project would create 160 new jobs at the site in a new, state-of-the-art advanced manufacturing facility. The new facilities, including the Duggal Greenhouse, will be housed in formerly vacant and abandoned buildings and will transform them into a flagship for advanced technology and processes in digital manufacturing. The company will also focus on research and development into new product development, all with an emphasis on sustainability. Duggal Visual Solutions has applied for State funding through the 2012 REDC process.
Additionally, the company was significantly impacted by Hurricane Sandy, suffering approximately $16 million in damages. Duggal has been working with Empire State Development staff to explore the Empire State Retention Jobs Program and a loan through the Jobs Development Authority to replace damaged equipment and repair its facility as a result of the storm.
Governor Cuomos Regional Council initiative is taking New York from a state known as frustrater of business growth to a facilitator of new business and private sector job development, said Empire State Development President, CEO & Commissioner Kenneth Adams. Through its first year, we have seen job-creating projects in New York City and across the state start to take shape and pay dividends in new jobs and economic activity to boost our local economies.
In the first round of the Regional Council initiative, New York City was awarded $66.2 million in state support through the Regional Economic Development Council initiative and CFA process for 50 projects across the region. 90 percent of the projects awarded funding have executed contracts with State funding agencies and have begun to reach their first performance milestones. Throughout its first year, the Council has reported substantial progress in implementing an integrated approach to advance economic activity that focuses on the redevelopment of distressed communities, workforce training, leveraging opportunities for business growth in the tourism, advanced and green manufacturing, and biosciences industries, supporting educational and health care services and institutions, and connecting entrepreneurs with funding and markets to build innovation industry clusters.
Once completed, the projects endorsed by the New York City REDC and awarded funding through the 2011 CFA will significantly boost the local economy by creating and retaining 5,660 jobs and leveraging over $700 million in additional private sector and other investment.
The Councils progress report and full list of endorsed priority projects for 2012 can be found at http://regionalcouncils.ny.gov/content/new-york-city.
To learn more about each Regional Council and their economic development plans, visit www.regionalcouncils.ny.gov.