NYCIDA assists two industrial companies to expand in Queens

The board of the New York City Industrial Development Agency (NYCIDA) gave the preliminarily approval for sales and real estate tax incentive packages to assist two industrial companies to expand in the borough. Dinas Distribution Corp. plans to invest $3.8 million to acquire and renovate a 32,000 s/f facility in Jamaica. PA Austin LLC, an affiliate of Parts Authority, will acquire the 7,350 s/f facility it currently leases in Rego Park. Together the two projects will retain more than 45 jobs and create 20 new ones over the next three years. As a result, the city will gain $7.4 million (NPV) in tax revenue over 25 years. "These two companies are perfect examples of the types of companies the NYCIDA was created to assist," said NYCIDA chairman Seth Pinsky. "For example, Dinas Distribution started as small, single location business and has used excellent service to expand its product lines and customer base. I am pleased that NYCIDA is able to make the necessary investments to allow Dinas Distribution and PA Austin to remain and grow in N.Y.C. Expanding small manufacturing and distribution companies is a critical component of mayor Bloomberg's Five Borough Economic Opportunity Plan." Dinas Distribution, an importer and distributor of ethnic foods, cookware and house wares, was approved to receive up to $1.5 million in real estate and sales tax benefits for the acquisition and renovation of a property on Dunkirk St. Dinas Distribution was founded, 15 years ago, by two brothers from Columbia, Luis and Ruben Valasquez who initially opened a retail bakery. They quickly moved into the food distribution business and founded their distribution company in a 400 s/f garage. As the company grew, the brothers acquired a 10,000 s/f facility in Maspeth and rented additional facilities in the area. It will allow the company to improve the inefficiencies of operating from multiple locations. It will also allow them to continue to diversify their product lines and enter a wider market to be more competitive with other companies in their industry. The company identified less expensive properties in N.J. that could accommodate its needs with lower operating costs, but it preferred to grow in N.Y.C. Over the next few years, Dinas expects its workforce to grow to 25 full-time-equivalent employees. PA Austin currently leases 4,350 s/f in a 7,350 s/f facility on Metropolitan Ave. in Rego Park. The owner of the property wants to sell it, and PA Austin would like to take advantage of the opportunity to solidify its ability to stay and grow at this location. Acquisition of the property would help PA Austin to invest about $2.6 million to renovate and expand its operations. The NYCIDA board approved up to $1.2 million in real estate and tax incentives for PA Austin LLC to assist with the acquisition, renovation and expansion project which will enable the company to add about 14 employees to its current workforce of 28.