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New Incentive Program Is Helping Attract Businesses To Upper Manhattan and Other Boroughs

Mayor Rudolph W. Giuliani today announced that the New York City Economic Development Corporation (EDC), on behalf of the City of New York, presented new media company Eyebeam Atelier with the first rent abatement check issued under the City's new Commercial Expansion Program (CEP).

The Commercial Expansion Program is a package of tax benefits that encourages businesses to relocate to Manhattan above 96th Street as well as to relocate to designated areas in the City's other four boroughs.

"The rent abatement check issued to Eyebeam Atelier symbolizes the very real benefits my Administration has made available to companies that are helping to expand New York City's economic resurgence to all neighborhoods throughout the City," said Mayor Giuliani. "The Commercial Expansion Program has provided an extra incentive for businesses to relocate within the City, instead of moving to neighboring states and counties."

Under the program, qualified companies locating or relocating in designated Expansion Areas in Brooklyn, Queens, the Bronx, Staten Island, and Upper Manhattan are eligible for benefits including tax credits for relocating employees, energy cost savings, property tax benefits, and rent abatements.

Through the CEP, Eyebeam Atelier's annual rent abatement will be $11,275.18 for each of the next three years. The company, which just received a check for $5,637.59 for the first half of its annual abatement, will also receive smaller rent abatement checks in the fourth and fifth years.

Eyebeam Atelier is currently building a studio/workspace in the Brooklyn waterfront neighborhood of DUMBO (Down Under the Manhattan BridgeOverpass), which is located in one of the City's Digital NYC: Wired to the WorldSM high-tech districts.

"We are very excited about moving to DUMBO and joining the emerging office and artistic community here," said John S. Johnson, Chairman of Eyebeam Atelier. "The neighborhood, combined with the quality of the space, the prices, and available incentives, made DUMBO the right choice for a growing artistic organization like Eyebeam."

Digital NYC is an award-winning economic development initiative that has created eight high-tech districts in neighborhoods throughout the City that offer affordable rents, fiber connections by various providers, excellent transportation, and valuable City tax and financial incentives. Since its inception in April 2000, more than 1.2 million square feet of space have been renovated, with approximately 400,000 square feet leased. Fifty-three companies employing more than 600 people now participate in the program.

"The City's Commercial Expansion and Digital NYC programs are important components of the Giuliani Administration's on-going efforts to help create and expand business in New York City and to make the City more business friendly," said EDC President Michael G. Carey. "These programs also demonstrate the importance of public/private partnerships in creating jobs, capitalizing on business opportunities, and revitalizing entire neighborhoods."

The Downtown Brooklyn Connected/DUMBO district has now attracted 25 new companies that employ more than 200 people, and is home to some of the City's most exciting high-technology companies, as well as residential housing and retailers.

"We've made a huge investment in DUMBO in the past year to attract companies exactly like Eyebeam Atelier," said David Walentas, President and CEO of Two Trees Management, the DUMBO property owner. "Its mix of arts, education, and high-tech enterprise is exactly what DUMBO is all about. This neighborhood's combination of lower rents, tremendous incentives, technologically prepared space, great transportation, and an exciting live-work environment make DUMBO the place to be."

The Commercial Expansion Program

The Commercial Expansion Program (CEP) is designed to help qualified businesses in eligible properties within the Expansion Areas. The Expansion Areas include C4, C5, C6, M1, M2, and M3 zones in the Bronx, Brooklyn, Queens, Staten Island, and Upper Manhattan (north of 96th Street). Included are all manufacturing areas and most commercial areas outside of Manhattan's central business districts. Under the program, qualified companies locating to designated Expansion Areas may be eligible for the following benefits:

• The Relocation Employment Assistance Program, a twelve-year tax credit of up to $3,000 per employee, per year.
• The Energy Cost Savings Program, which offers discounted (up to 45% off delivery costs) electricity and natural gas to qualified businesses for 12 years.
• The Industrial and Commercial Incentive Program, which provides property tax benefits (for a period of 12 to 25 years) to property owners who improve commercial property.
• Rent Abatement Program, which offers tenants signing new, renewal, or expansion leases in eligible buildings rent credits of up to $2.50 per square foot for three or five years.

Through these benefits, the Commercial Expansion Program provides an excellent opportunity for businesses, small and large, to participate in the City's phenomenal economic growth. The substantial cost savings available under this program will help companies throughout the City reach their business goals.

For detailed information on CEP and the Digital NYC: Wired to the WorldSM program, visit EDC's website at http://www.nyc.gov/html/edc/home.html or call 212-312-3600.

EDC is the City's primary vehicle for economic development services. Using its real estate and financing resources, EDC helps develop businesses and create jobs throughout the five boroughs.

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