A newly announced initiative is looking to power industrial and manufacturing businesses in New York City — while also making sure the industry stays in the Big Apple.
The New York City Economic Development Corporation (NYCEDC) announced the launch of the NYC Industrial Developer Fund, a $150 million public/private fund created to provide financing for industrial real estate development projects.
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This new initiative is expected to create a total of 400,000 square feet of new or renovated industrial real estate workspace throughout the city — ultimately creating up to 1,200 jobs by 2020.
“Manufacturing isn’t just our past, it’s our future,” Mayor Bill de Blasio said. “Clean, modern, hi-tech manufacturing is creating thousands of good jobs across this city. And we’re putting real resources in play to jumpstart this sector and spur more opportunity for our people.”
According to officials, the industrial and manufacturing sector has had to deal with serious challenges in the past decades with manufacturing jobs being taken overseas and increased local competition for real estate for residential and commercial uses.
The NYC Industrial Developer Fund is part of de Blasio and City Council Speaker Melissa Mark-Viverito’s industrial action plan announced last year, which includes 10 initiatives and is projected to generate more than 20,000 new jobs.
Through the fund, qualified real estate developers are provided with partial public gap-financing assistance in the form of grants, low-interest subordinate loans and guarantees on senior private loans.
“Our future is about making New York City the world capital of commerce, culture and innovation,” said Alicia Glen, Deputy Mayor for Housing and Economic Development. “Advanced manufacturing is a critical piece of our 21st century economy, and we’ve taken a comprehensive approach to activating industrial assets, deepening career training and making sure new firms have the space and capital they need to hire up and grow.”
The $150 million fund includes about $60 million in public funds, and $90 million in private financing.
On March 4, NYCEDC released a Request for Proposals for nonprofit developers that are looking for financing to create or renovate industrial space across the city. NYCEDC will consider both nonprofit and for-profit entities for the fund.
"The industrial and manufacturing sectors provide quality jobs for a wide range of New Yorkers and are critical for a dynamic and inclusive 21st century economy,” said NYCEDC President Maria Torres-Springer. “The Industrial Development Fund and Futureworks NYC ensure that the city's producers have the space, talent, and resources they need to generate an advanced manufacturing revolution in New York."