White Plains, NY The Westchester County Industrial Development Agency (IDA) has voted final approval of financial incentives for two major development projects – Regeneron expansion and Gateway II mixed-use complex. Both represent a total private investment of $755 million.
“Today’s action by the IDA clearly demonstrates that Westchester County continues to attract private capital from major corporations such as Regeneron as well as large real estate development companies. The incentives provided by the IDA will pay significant dividends in terms of job creation, new tax revenue and overall economic vitality for our County,” said Westchester County executive George Latimer.
“Regeneron’s expansion is terrific news for Westchester County and our fast-growing biotech sector. The Gateway II project will continue to build on the tremendous growth under way in downtown White Plains especially near the updated Metro-North train station. Both projects will create much-needed jobs during this crucial period in our county’s economy,” said Joan McDonald, chair of the Westchester County IDA. The board voted the approval at its August 26 meeting.
Regeneron is constructing a two-story building containing 207,940 s/f of research and development space together with related parking and infrastructure on existing land on its campus in Greenburgh. The new $480 million facility will connect to existing buildings on the campus.
Regeneron was approved for sales tax exemption of $91.94 million and a mortgage recording tax exemption of $7.7 million. The project is anticipated to create 1,624 construction jobs and support 505 new jobs on-site. It is estimated that 75% of the $155 million in labor costs will utilize Westchester labor.
According to a cost-benefit and impact study prepared for the IDA, earnings associated with the on-site operations are estimated to generate $487,682 sales tax revenue to the county annually. The cost benefit analysis shows the project generating a range of approximately $7.47 of county tax revenue for each $1.00 of county incentives awarded, making it rank among the highest returns on investment for county taxpayers for projects induced by the Westchester County IDA.
The Westchester IDA also voted final approval of financial incentives for the Gateway II mixed-use complex, a $275 million project slated for downtown. The building would feature 500 apartments, 19,000 s/f of ground-level retail space and parking for 755 cars. The project was approved for $5.36 million in sales tax exemptions and $1.65 million in mortgage recording tax exemptions. The project is estimated to create 600 construction jobs and 20 full-time jobs. The county held a career fair that drew nearly 200 people interested in construction work.
The 804,000 s/f complex, which is located at 25 North Lexington Ave. on a site currently used as a parking lot, includes a 25-story tower paralleling North Lexington Ave. to the east and an intersecting 16-story tower running westerly from North Lexington to Ferris Ave. The lobby will be located with access on both Lexington Ave. and Hamilton Ave. The building will also include both indoor and outdoor amenities serving the residential tenants.
The plan calls for a mix of 167 studio units, 208 one-bedroom units, 117 two-bedroom units, and 8 three-bedroom units. Fifteen units will be classified as affordable in compliance with the City’s Affordable Rental Housing Program.
The ground-level retail will be designed to activate Hamilton Ave. and provide amenities for the Metro-North train station with service-oriented retail tenants including a signature restaurant.
The project developer is Greystar Real Estate Partners and the Alaska Permanent Fund Corp.
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