Tuesday, February 7, 2012

FreshDirect to Open New Headquarters in the Bronx



Company Will Invest $112 Million and Employ Nearly 3,000 Workers

Governor Andrew M. Cuomo, Mayor Michael R. Bloomberg, and Bronx Borough President Ruben Diaz Jr., today announced that FreshDirect, a leading fresh food internet grocer, will invest $112.6 million to build its new headquarters and operations center at Harlem River Yards, retaining nearly 2,000 existing jobs and creating almost 1,000 new jobs.

The construction of the new facility will also result in the creation of approximately 684 construction jobs in the City.


“FreshDirect is a home-grown success that will now continue to grow and create jobs in New York,” Governor Cuomo said.


“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.”

New York City Mayor Michael R. Bloomberg noted, “Making sure that companies like FreshDirect can grow and invest in New York City is a key part of our strategy to rebuild and diversify our economy. A thousand new jobs at the Harlem River Yards is great news for the Bronx and a welcome boost to our City’s economy.”


“I welcome FreshDirect to the Bronx with open arms. This iconic company will not only stay in New York where it belongs thanks to this deal, they will bring 1,000 new jobs with them to our borough. More and more companies are discovering that the Bronx is a great place to do business, and FreshDirect’s move to our borough is a major positive step forward for our economy,” stated 
Bronx Borough President Ruben Diaz Jr.

FreshDirect Chief Executive Officer Jason Ackerman added, "From day one, New York has been our home, and we are grateful for the support of Governor Cuomo and Mayor Bloomberg in making New York a place FreshDirect wants to stay and grow in, and for Bronx Borough President Diaz welcoming us. With significant growth in our customer base, we need to expand our operations. A new state-of-the-art facility at the Harlem River Yard in the Bronx would allow us to operate more efficiently, maintain our relationships with NYS vendors, local farmers and purveyors and continue our long track record of growth and job creation in New York.”


FreshDirect, founded in 1999 and currently based in Long Island City, New York, purchases produce, meat and dairy from over 60 New York State-based farms and serves a customer base of over 100,000 people with 97 percent of their employees coming from New York State.


To meet the needs of its rapidly growing customer base, FreshDirect will invest $112.6 million to construct a state-of-the-art 500,000 square foot facility on a 16 acre parcel at Harlem River Rail Yards in the Bronx. From its new headquarters and operations, the company will dramatically expand its service area to regions surrounding New York City, as well as New Jersey, Connecticut, and Philadelphia.

To encourage FreshDirect to retain and expand their operations in New York City, a package of state and city incentives valued at over $100 million is being provided to augment the company’s private investment including: 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), and up to $1 million in vouchers for the purchase of electric vehicles (NYSERDA).

New York City incentives include: Approximately $74 million in sales tax exemptions, mortgage recording tax deferral, and real estate tax exemption spending 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), and $1 million loan (NYCEDC).

The Bronx Borough President's incentive includes a $1 million capital grant, and the Bronx Overall Economic Development Corporation would receive
 a $3 million loan and a $500,000 capital grant.

FreshDirect plans to purchase 10 electric refrigerated electric trucks from Smith Electric Vehicles, and five additional electric refrigeration units that can be placed on existing trucks.

Smith Electric is a leader in zero-emission, all-electric commercial vehicles, which – through a federally-funded program and with assistance provided by New York City and State - recently announced plans to establish a clean technology manufacturing facility in the South Bronx that will create more than 100 new direct jobs.

A number of city officials praised the decision and expressed full support for the economic plan. They include the following: 

"Thanks to Governor Cuomo’s leadership, a true New York success story is staying in New York. This is another strong signal of how the Governor’s efforts to create a better business environment are paying off in the form of more jobs for New Yorkers." - Empire State Development President, CEO & Commissioner Kenneth Adams.

“While New York City is the home to some of the most innovative companies in the world, there are few that have impacted the daily habits of New Yorkers like FreshDirect. Over the next decade, this project will lead to significant investment in the South Bronx, creating thousands of jobs for New Yorkers, generating hundreds of millions of dollars in overall economic activity, and ensuring that this hometown success story is able to continue its tremendous growth right here in the five boroughs where it belongs.” - 
New York City Economic Development Corporation President Seth W. Pinsky

“FreshDirect’s decision to expand in the Bronx is a strong statement of confidence in New York City's future. Today’s announcement is the latest sign that more and more businesses want to be in New York City.” -  NYC Deputy Mayor Robert K. Steel.


“FreshDirect's move to the Bronx will bring much needed jobs to the borough, along with additional business opportunities here and across the region for companies of all types. I look forward to working with them to expand the borough’s economy for years to come.” - 
Bronx Overall Economic Development Corporation President Marlene Cintron

Image courtesy of 
http://www.prlog.org

1 comment:

  1. Fresh Direct and Elected Officials Announce Move BEFORE Public Hearings

    Over $100 million in corporate subsidies in the balance

    Can you attend this hearing? There will be many people from the Bronx community here...

    on Thursday, February 9, 2012 10:00 A.M.

    110 William Street, 4th Floor, New York, New York ....

    ______________

    Fresh Direct, the truck delivery based grocery corporation is proposing to MAYBE make use of our South Bronx waterfront. While they negotiate the most lucrative corporate subsides from New Jersey or Queens first, squeezing the NYCEDC for more of our tax money and free land, pitting one locale against another.

    Issues:

    The 99 year lease to the Galesi Group’s Harlem River Rail Yards Venture from Andrew Cuomo’s father, isn’t that obscene? (Fresh Direct would be a mere subleasee)

    Harlem River Rail Yards is stopping the South Bronx Greenway to Randall’s Island, isn’t that unfair?

    Do we really want thousands of truck traffic trips a week in the highest rate of asthma community in the Nation, isn’t that super unhealthy?

    Are there any union living wage guarantees, or local hiring commitments in writing, isn’t that fair?

    What do WE want to do with our waterfront, why is it always polluting industries moving here, isn’t that crazy?

    *** The entire South Bronx Waterfront is owned by US, the PUBLIC through our agency the NYS Department of Transportation. We need to re-examine the lease the the “Harlem River Rail Yards” a subsidiary of the Galesi Group. They are in default. Who has ever checked on it?

    _____________________________________________________

    We need you to attend this hearing:

    on Thursday, February 9, 2012 10:00 A.M.

    110 William Street, 4th Floor, New York, New York ....

    Just say no! Demand an audit of the lease. Demand a default action on the lease to our public waterfront so we can begin a community led planning and zoning process for our public land!

    ReplyDelete