The Islip Industrial Development Agency (IDA) has been instrumental in attaracting and keeping companies in the area. The IDA assisted Sysco of Long Island LLC to open a new distribution center; approved a $5.5 million solar power project and approved assistance to keep Broadridge Investor Communications Solutions in the area.
Town supervisor Tom Croci and members of the town board joined officials of Sysco Long Island as they opened the doors to the company's new distribution center.
The $92 million facility, which received $7.3 million in financial assistance from the town IDA, has brought 235 new jobs to the town, more than previously estimated, and generated 175 union jobs during construction. The building has 420,000 s/f of dry- and cold-storage facilities and an administration area.
The Sysco jobs, which include executives, sales, customer service and administrative staff, credit analysts, buyers, chefs, drivers, mechanics and warehouse workers.
Many of the employees were hired through a cooperative effort with the Central Islip Civic Council.
"We are gratified that Sysco has exceeded the hiring goals it indicated it would achieve in its application for assistance from the IDA. At a time when job creation locally, regionally and nationally has been at best minimal, this project clearly is a boon for Central Islip, the town and all of Long Island," said Croci. "Sysco's work with local civic groups and residents had demonstrated the company's commitment to putting Islip residents to work."
"The construction of this distribution center will allow Sysco to serve Long Island from one centralized location," said Frank Recine, president of Sysco Long Island. "In terms of size, this facility is unparalleled by any other food-service provider on Long Island. It was built to ensure that our customers could be served both efficiently and with the widest variety and best quality products. More than 10,000 separate food (fresh, cold, frozen and packaged) and specialty items are housed within our facility."
Town councilman John Cochrane, the liaison to Islip's IDA, said that "in the company's application, Sysco guaranteed it would create 185 jobs within two years of the facility's opening in return for $7.335 million in tax breaks, including $2.5 million in exemptions from state and local sales taxes on materials used in building and equipping the project and a property tax abatement of $4.7 million-a 34% reduction-over a 14-year period."
The Sysco facility is sophisticated with portions maintained at different temperatures and an automated loading system.
An 88,000 s/f freezer will be maintained at 0 degrees, and another 20,000 s/f will be kept at minus 10 degrees for ice cream. An enclosed 40,000 s/f loading dock that adjoins the freezer space will be kept at 33 degrees. The unrefrigerated or "dry" warehouse is 120,000 s/f with a loading dock of 35,000 s/f. The warehouse has a total of 49 truck bays with a larger number of them for the freezer section. Also, part of the warehouse building is a 60,000 s/f corporate office. The distribution center has a highly sophisticated automated loading system for some of the company's products, which will lift and lower pallets of inventory onto a 37-foot-high shelving system,
The building also contains a culinary center area in which chefs create dishes for customers and a hydrogen fuel station to power all of the forklifts used within the facility.
The warehouse at 199 Lowell Ave. was built on 46 acres purchased three years ago for $33 million. A former grocery warehouse on the site, once owned by Waldbaum's was razed.
A local construction company, Aurora Contractors Inc. of Ronkonkoma, which used 200 workers over the course of the project, built the new warehouse, one of the largest construction projects on Long Island.
The Islip IDA has also approved an economic assistance package aimed at keeping Broadridge Investor Communications Solutions in Edgewood.
The benefits, which would be provided in concert with tax breaks previously approved by the Suffolk County IDA, would enable Broadridge to expand and upgrade its operations in the Heartland Business Park. The company has 1,600 workers at four facilities in Edgewood, three in Heartland.
The Agency approved the benefits at its meeting on June 5.
"It's critical that we retain these valuable jobs in Islip," said Croci. "We hope our efforts bear fruit."
The Islip IDA will assist Broadridge in renovating and equipping an 111,583 s/f warehouse at 300 Executive Dr. in Edgewood at an estimated cost of $77 million to be spent over five years. The assistance with an estimated value of as much as $1.1 million includes a 15-year property tax abatement and a sales-tax exemption on equipment purchases.
The Suffolk County IDA similarly approved $7.2 million in incentives, including $2.6 million in sales tax exemptions on $75 million in equipment purchases and a 15-year property tax break on the existing assessments for two other leased buildings used by Broadridge at 51 Mercedes Way and 1165 Long Island Ave., also in Edgewood.
Broadridge Investor Communications Solutions is a subsidiary of Lake Success-based Broadridge Financial Solutions, which was spun off by ADP in 2007. The company processes, prints and distributes investor communications on behalf of publicly traded companies and financial institutions.
Broadridge's four facilities in Edgewood total 743,00 s/f and house Broadridge's sales, distribution, processing, sales, distribution, back office and data center operations.
In its IDA application Broadridge said it has undertaken a nationwide site selection process to "find the most cost effective solution." It said out-of-state locations under consideration "offer the company substantial reductions in real estate leasing costs, utility costs, employee wage costs and state and local taxes compared with their current New York operations." Broadridge added that it has received significant incentives, some worth more than $100 million, from Virginia, Texas, Florida, Ohio, Oklahoma, Tennessee and New Jersey.
The company has said should it decide to remain in Edgewood, it contemplates renewing leases for only three buildings totaling 643,065 s/f. Broadridge has said it intends to shut a fourth facility outside of Heartland.
Broadridge has also sought assistance from New York State and the Long Island Power Authority.
The Islip IDA has approved an economic assistance package for a $5.5 million solar power project at a Ronkonkoma warehouse operated by Quality King, Long Island's largest privately owned company.
Quality King, a distributor of pharmaceuticals and healthcare products based in Bellport, plans to install solar panels at its 185,000 s/f warehouse at 201 Comac St. The benefit is valued at $474,000.
"This assistance, which only covers equipment, not only allows one of our leading businesses to expand in our town, but also provides green benefits," Croci said.
The IDA, meeting on June 4, approved a sales-tax exemption for Quality King's planned purchases of solar panels and power inverters. The company has estimated that its conversion to solar power will save $190,000 in energy costs in its first year of use. It said the savings would allow Quality King to expand its operations and retain 238 jobs.

Shown (from left) are: Alexis Weik, Islip receiver of taxes; Old Murray, Islip town clerk,; Islip town councilwoman Trish Bergin-Weichbrodt; Karen Casey, CFO of Sysco Long Island; Frank Recine, president of Sysco of Long Island; Islip town supervisor Tom Croci; Islip town councilman Steve Flotteron and Suffolk legislator Rick Montano. Tags: