Posts by: Economic Development HQ.com

Verizon Leverages Lower Manhattan Headquarters Building to Support NYC Tech Sector

Verizon has announced the launch of a new economic development initiative to support the NYC tech sector by opening up its landmark former headquarters building at 140 West Street in Lower Manhattan.

Grind Verizon co-working space

Photo – grindspaces.com

Verizon is working with Grind, which provides membership-based coworking communities, to curate the experience.

The new co-working space will cover more than 10,000 square feet of an underutilized floor in the iconic Art Deco structure across from One World Trade Center. The space will include open workspace, team rooms, conference rooms, and meeting spaces, to accommodate around 120 people per day.

Apart from providing the space, Verizon will also connect the coworking community to Verizon’s advanced Internet services. Startups and entrepreneurs at the co-working space will receive mentorship through Verizon Ventures, the venture capital arm of the company. Verizon’s Powerful Answers Award program, which has issued $16 million in awards to date, plans to award more than $6 million later this year.

John Vazquez, Verizon’s senior vice president for Global Real Estate, said in a release that “With a rapidly growing tech sector in New York City, and a desire by those firms for high-speed connectivity, reliability and stability, our building will be getting new life as a center of innovation and collaboration.”

Grind co-founder Benjamin Dyett added that “Grind is excited to form this collaborative partnership with Verizon to create a coworking location that will align with Grind’s mission to shape the future of work.”

The Grind-Verizon coworking space is set to open in February next year. The space is being designed by leading architecture and design firm Gensler.

It could potentially be just the first step in a broader partnership that provides significantly higher benefits for NYC economic development through startup and innovation hubs located all over the city. The West Street coworking space will serve as a pilot project for Verizon and Grind to potentially launch similar coworking facilities at locations throughout New York City and other cities. Each site will be customized to fit the needs of the particular community it serves.

“We expect this location – and possibly others across the country – will be a dynamic work environment where start-up and creative entrepreneurs can form vibrant interdisciplinary communities geared toward collaboration and innovation,” added Vazquez.

Verizon Communications Inc. (NYSE, NASDAQ: VZ) is headquartered in New York, employs a workforce of 178,500, and generated more than $127 billion in revenues last year.

Italian Automotive Supplier Expands Operations in Sanford, NC

Magneti Marelli Powertrain USA LLC has announced plans to expand its Lee County, NC manufacturing plant located in the City of Sanford.

Magneti Marelli

Magneti Marelli (photo -cmonville/flickr)

Supported by a North Carolina economic development grant, the company will make a capital investment of $12 million over the next two years and expects to create 76 new jobs over the next three years.

In a release announcing the project, Governor Pat McCrory said that global firms like Magneti Marelli find that nothing compares to the can-do spirit of North Carolina workers. “All the ingredients they need are right here, allowing companies to reach new heights,” added Gov. McCrory.

In order to secure the project, NC Commerce and the Economic Development Partnership of North Carolina (EDPNC) worked in partnership with the Sanford Area Growth Alliance, Lee County, the City of Sanford, the NC Department of Revenue, the North Carolina Community College System, and Central Carolina Community College.

North Carolina has offered the company a performance-based grant of up to $225,000 under the One North Carolina Fund. The One NC Fund, which provides economic development funding for projects through local governments, is designed to attract business projects that will stimulate economic activity and create new jobs in the state. Companies do not receive any money up front, and are required to meet job creation and investment performance standards to qualify for grant funds.

NC Commerce Secretary John E. Skvarla III added that they welcome this additional investment from Magneti Marelli. “The company operates 89 manufacturing facilities throughout the world, so I’m gratified they recognize the value of their North Carolina operations,” said Sec. Skvarla.

The Sanford powertrain plant opened in 1976, and primarily manufactures fuel systems for cars, and also for motorcycles and other motor sport vehicles. This latest $12 million expansion with 76 new jobs builds on a $15 million investment the company made four years to add three new production lines and new high-tech machinery to the Sanford plant, along with 65 new jobs.

Magneti Marelli Powertrain, which designs, develops and manufactures engines and transmissions components for cars, motorbikes and light vehicles, is part of Corbetta, Italy-based Magneti Marelli S.p.A. The company’s North American headquarters is located in Auburn Hills, MI.

The Group has a presence in 19 countries, and supplies most of the important car makers in Europe, Asia, and South and North America. With more than 38,000 employees, their global operations encompass 89 production units, 12 R&D centers and 26 application centers.

Colorado Economic Development Incentives Secure DaVita Expansion in Denver

DaVita HealthCare Partners Inc. has announced plans to expand its footprint in downtown Denver by leasing space in a new office tower and adding hundreds of new jobs.

DaVita HealthCare Partners

Photo – davitahealthcarepartners.com

Supported by incentives approved last month by the Colorado Economic Development Commission, the company is leasing 265,000 square feet of space in the 16 Chestnut development in downtown Denver.

The 410,000-square-foot 16 Chestnut building is located directly across 16th Street from DaVita’s original headquarters building, thus creating an urban campus environment for the company in downtown Denver. Groundbreaking for the new building is scheduled for July next year.

The new space will allow for growth including 1,200 additional DaVita HealthCare Partners teammates in Denver. DaVita HealthCare Partners Chairman and CEO Kent J. Thiry said in a release that “When we moved to Denver, we were confident that we would find a place for our new corporate headquarters. What we underestimated was that we would find a community that aligns so well with our own values.”

DaVita HealthCare Partners Inc. (NYSE:DVA), an independent medical group and a leading provider of kidney care services, relocated from Los Angeles to Denver in 2010 and opened its headquarters building in 2012. At that time, the $101 million project was the first corporate build-to-suit headquarters to locate in the Denver central business district in the past 35 years.

Back in 2010, Colorado offered DaVita $5.3 million in state incentives to support the company’s headquarters relocation and investment project. Last month, the Colorado Economic Development Commission approved another $12.7 million for “Project Bronco II” under the Job Growth Incentive Tax Credit (JGITC) program for the company’s latest expansion project.

Colorado Governor John Hickenlooper said in the release that when you recruit a headquarters to your state, you do everything you can to ensure they’re successful and grow. “With DaVita, we also welcomed a devoted community partner,” added Gov. Hickenlooper. “Their support has benefited everything from our schools to business development to hundreds of charities and non-profits.”

Since relocating to Colorado, DaVita has become a key driver of Denver economic development, adding more than 1,500 local jobs and pumping millions into the local economy. The company now has more than 2, 420 employees in Colorado and over 62,000 overall.

DaVita is also one of the most admired corporate entities and employers in the region. In the last year alone, the company has been named on lists including the Denver Business Journal’s Healthiest Employer list; FORTUNE Magazine’s Most Admired Companies list; and Newsweek’s Top Green Company in the U.S. list.

Denver Mayor Michael B. Hancock added that “DaVita has played a key role in Lower Downtown’s resurgence as a vibrant hub for innovative businesses. This next chapter for DaVita and Denver is set to build on that momentum.”

The leasing entity and property owner of the 16 Chestnut building is East West Partners. Chris Frampton, managing partner at East West Partners, noted that DaVita truly put Denver on the map as a destination for business and corporate headquarters. Frampton added that “their commitment to downtown has had and will continue to have a significant impact.”

Miami-Dade Economic Development Incentives For Naeem Khan Headquarters Relocation

Later this week, the Economic Prosperity Committee of the Miami-Dade Board of County Commission will consider a resolution that facilitates approval and allocation of incentives for the Naeem Khan headquarters relocation project.

Miami-Dade Naeem Khan HQ project

Miami-Dade Naeem Khan HQ project (photo – miamidade.gov)

Fashion designer Naeem Khan is considering relocating his company NKMIA, LLC’s headquarters from NYC to Miami Dade.

Supported by Miami-Dade economic development incentives of up to $1.5 million under the Building Better Communities General Obligation Bond Program Project No. 124, the company will invest $9.6 million to establish a state-of-the-art manufacturing facility in a 30,000-square-foot studio space along the Miami River.

This facility will also serve as the headquarters of the Naeem Khan label. The company expects to bring 50 full-time jobs to Florida. These will be jobs with an average salary of $50,000.

The application to Miami-Dade County Commissioners notes that “Miami is the ideal location for the fashion industry – a climate allowing year-round production, substantially lower taxes and wages, and the region’s access to a South American population with a tradition of handiwork.”

The application also notes that the Naeem Khan project will be the first of its kind in Miami County, and the relocation of the label’s headquarters could be a stepping stone not just for high-end designers, but the entire fashion industry.

The new facility will also act as an incubator for the fashion industry, offering design studios readily available for use by other providers in the industry. The application also notes that the Miami economic development benefits do not stop at design and manufacturing. As designers relocate to Miami, it will open the door for the city to host an international fashion week.

The biennial Fashion Week brings in $900 million in revenue for NYC, where fashion is a $98 billion industry. Globally, fashion is a $1.2 trillion industry.

The Naeem Khan project may also support development of fashion-related training and education in the region. Meetings are already in place to create joint fashion programs with some of Miami’s largest universities and colleges.

Naeem Khan launched his eponymous collection in 2003, and began selling at Bergdorf Goodman, Neiman Marcus and Saks Fifth Avenue. The collection has since grown to be sold at more than 100 specialty stores around the world, and his celebrity fan base includes First Lady Michelle Obama, Beyonce, Taylor Swift, Katy Perry, Queen Noor of Jordan, and others. In 2008, Naeem Khan was inducted as a member of the Council of Fashion Designers of America.

Nestle Product Technology Center in Bridgewater, NJ Will Aid Economic Development

Nestle Health Science has officially announced the selection of Bridgewater, NJ as the site for a new Nestle Product Technology Center (NTPC).

Nestle

Nestle (photo – Dornum72/wikimedia)

Supported by Grow NJ incentives approved earlier this year by the New Jersey Economic Development Authority (NJEDA), the company plans to invest $70 million to establish the 180,000-square-foot facility to house the company’s U.S. headquarters and R&D operations.

The jobs at the new Center will include some 60 headquarter jobs currently located in the company’s existing headquarters in Florham Park, NJ. Nestle Health Science will also relocate some 100 jobs from out of state to the NTPC, including teams and operations of the company’s R&D Center in Minneapolis.

This new facility builds on the company’s presence in the Northeast, adding to the recently opened Novel Therapeutic Nutrition business offices in Cambridge, MA. Nestle Health Science CEO Greg Behar said in a release that the new facility will house the latest technologies and people in the field, uniting their R&D and business teams in a region with strong life-science activity.

“It will enhance and accelerate the quality and speed to market of Nestlé Health Science’s innovations that improve nutritional status and health outcomes,” added Behar.

New Jersey secured this project by offering Nestle HealthCare Nutrition, Inc. and Nestle Nutrition R&D Center Inc. tax credits under the Grow NJ program. The company stands to save up to $14.45 million in tax incentives over a 10-year period.

Apart from the $70 million investment, creation of new jobs for the state, and the retention of the company’s U.S. headquarters and existing jobs, the Nestle Health Science project has also been eagerly awaited by state officials as a prestigious project in a targeted industry which they can now cite to attract more companies and establish the area as a life sciences hub.

Nestle Health Science, a wholly-owned subsidiary of Nestle, is a global company headquartered in Epalinges, Switzerland. The company was initially founded on the HealthCare Nutrition business of Nestle Group, and already employs around 3,000 people worldwide.

The Bridgewater facility will be one of more than 30 Nestle Product Technology Centers around the world which have become key components of the research and development that drives Nestle’s growth as the world’s largest nutrition health and wellness company, with sales approaching $100 billion per year.

Eli Lilly NYC Expansion Brings Economic Development and R&D Opportunities

Eli Lilly and Company has announced plans for an expansion of its research and development presence at the Alexandria Center for Life Science in NYC.

Eli Lilly and Company

Eli Lilly and Company (photo -lilly.com)

The NYC economic development benefits from the project include the creation of 50 new jobs by Eli Lilly. Also, the expansion will allow Lilly to strengthen its relationships with local academic institutions and prominent medical schools.

The company will add 30,000 square feet of space to house a translational immuno-oncology hub and a Lilly “portal” to provide local academic scientists with opportunities for collaborative access to cutting-edge drug discovery capabilities, including chemistry and lead optimization expertise.

This is Lilly’s third strategic research and development expansion this year that combines external collaborations with internal investments to strengthen research infrastructure and capabilities.

Earlier this year in May, Lilly announced it would build a delivery and device innovation center in Cambridge, MA. The company subsequently announced an expansion of its biotechnology center in San Diego, CA.

Lilly first established its presence in the New York metropolitan area with the acquisition of ImClone in 2008. The Alexandria Center for Life Science R&D site in NYC, located near the East River, opened in 2010. It was developed by Alexandria Real Estate Equities, Inc. as a collaborative urban campus for life science companies in the region. Lilly also has a manufacturing and clinical development center in Bridgewater, NJ.

Indianapolis, IN-based Eli Lilly and Company (NYSE: LLY) was founded in 1876 by Colonel Eli Lilly. The company now has approximately 41,122 employees worldwide, including 10,526 in Indianapolis and 5,822 more U.S. employees. The Lilly workforce includes more than 8,000 people engaged in research and development.

Lilly has manufacturing plants in 13 countries and research and development facilities located in six countries, with clinical research being conducted in more than 55 countries. Last year, Eli Lilly spent $4.734 billion on R&D expenditures. It costs the company an average of $800 million to $1.2 billion to discover and develop a new drug, with the average length of time from discovery to patient being 10-15 years.

Jan Lundberg, Ph.D., executive vice president of science and technology and president of Lilly Research Laboratories, said in a release that they are prepared to push the boundaries to accelerate drug discovery. “Our expanded capabilities at the New York site will further Lilly’s expertise in our core therapeutic areas and help pave the way for broader collaboration with leading academic, health care and industry colleagues,” added Lundberg.

Tennessee Governor’s Conference on Economic and Community Development

The 62nd Annual Tennessee Governor’s Conference on Economic and Community Development is scheduled to be held Oct 13-14 at the Renaissance Hotel in downtown Nashville.

Team Tennessee

Team Tennessee (photo – tnecd.com)

The conference theme this year is “Team Tennessee” and will focus on showcasing how the state’s workforce, education and transportation systems are aligning to support the overall Tennessee economic development mission.

More than 800 economic development leaders, state and local elected officials, and business professionals are expected to attend the two-day conference.

The conference agenda includes four session blocks offering a total of 12 educational sessions on topics ranging from rural development, workforce and education to entrepreneurism, branding and more.

The first session block includes three concurrent sessions on Economic Development 101, driving private sector interest in education, and the impact of tourism. The second session block features concurrent sessions on main street vitality, rural health, and “Taking the Big LEAP: Case Studies and Success Stories.”

The third session block features concurrent sessions on approaches for supporting rural entrepreneurs, a discussion of Project Thunder (Cirrus Aircraft), and a session on “Select Tennessee & PEP 2.0.” The fourth session block will feature a session on the new tax credit landscape, another one about branding your site, and a third session to introduce the Governor’s Workforce Cabinet.

The three plenary sessions on the agenda which will explore issues involving economic development alignment, the state of transportation in Tennessee and the power of education will be led by TNECD Commissioner Randy Boyd, TDOT Commissioner John Schroer and TN Department of Education Commissioner Candice McQueen, respectively.

TNECD Commissioner Randy Boyd said in a release that “This year’s conference will give attendees an opportunity to hear from several of my fellow cabinet members in addition to a number of other exceptional speakers, and I’m hopeful that our stakeholders will leave with new, creative ideas to share with their communities.”

Business author Joe Calloway will be the keynote speaker for the Commissioner’s Luncheon. Calloway is the author of “Be the Best at What Matters Most” and five other ground-breaking business books, and is also a consultant and speaker with a client list that includes companies such as Coca Cola, IBM, Cadillac and American Express.

What: TN Governor’s Conference on Economic and Community Development (govcon.tnecd.com)

When: Oct 13-14, 2015

Where: Renaissance Hotel, Nashville, TN

Tyson Foods’ Return to Downtown Springdale Supports Revitalization and Historic Preservation

As part of its continuing commitment to helping rebuild downtown Springdale, AR, Tyson Foods, Inc. has announced plans for bringing some of its operations back to its historic origins on Emma Avenue.

Rendering of Tyson Foods facility on Emma Ave in Springdale, AR

Tyson Foods facility on Emma Ave in Springdale, AR (rendering – tysonfoods.com)

Tyson plans to construct a new two-story, 44,000-square-foot building in between its original headquarters located at 319 E. Emma Ave. and the adjacent building at 317 E. Emma Ave., formerly known as the Brown Hatchery building. The project will preserve the historic frontage of the original buildings.

The original headquarters building dates back to 1920, and was once home to the Springdale Produce Company, owned by John W. Tyson who moved to Springdale during the Great Depression and started delivering chickens to markets in the Midwest. After a fire destroyed it, the building was rebuilt in 1952 and became home to Tyson’s Feed & Hatchery until 1969, at which time Tyson Foods moved to its current location.

Today, Tyson Foods, Inc. (NYSE: TSN) employs more than 6,000 people in Springdale and nearly 23,000 people in Arkansas. Globally, Tyson Foods, Inc. has 113,000 team members and generated $37.6 billion in sales in the last fiscal year.

The company works with more than 1,700 family farmers in the state who grow chickens for its operations. The company also purchases cattle, pigs, grain, diesel and other utilities in Arkansas, and estimates its annual statewide economic impact at more than $1.6 billion.

The new facility in downtown Springdale is being built to house about 250 of these jobs. John Tyson, chairman of Tyson Foods, Inc., said in a release that they’re collaborating with Springdale economic development groups and other business leaders on ways to make the area a hub of innovation.

Tyson Foods is also renovating another building located at 516 E. Emma, named the Tyson Foods JTL Building. This facility will become the new home to the Tyson Company Store. About 75 people will work at the JTL Building starting next spring.

Earlier this year, Tyson Foods announced a $1 million gift to the Downtown Springdale Alliance. “While the purpose of that donation was to help jump-start the revitalization of downtown, what’s even more important is bringing people back to Emma Street. That’s why we have plans to locate more than 300 of our corporate Team Members downtown,” added Tyson.

SUNY Poly and Tokyo Electron Limited Agree on $262.5M Nanotech Investment in Albany, NY

Adding another notch in New York State’s nanotechnology innovation and leadership, SUNY Poly CNSE has announced that global electronics and semiconductor company Tokyo Electron Limited has extended its research and development agreement through 2020.

SUNY Nanotech Center

SUNY Nanotech Center (photo – UpstateNYer/wikipedi)

The agreement calls for $262.5 million in new investments over the next five years at SUNY Poly’s NanoTech megaplex in Albany, NY, including $175 million from TEL and another $87.5 million from SUNY Poly.

This latest investment brings TEL’s total investments into its cutting edge R&D center at SUNY Poly CNSE to more than $1 billion. The center was TEL’s first research and development facility outside of Japan, established in Albany in 2003 with a $300 million investment that included $100 million in state funding.

Today, the center supports over 750 high tech employees from TEL, SUNY Poly and corporate partners across New York State.

Tetsuro Higashi, President and CEO of TEL, said in a release that “New York continues to be a wonderful partner to TEL. Through SUNY Poly, Governor Cuomo has created one of the finest R&D centers in the world for creating next generation chip technology, and we look forward to our continued collaboration and innovation.”

TEL is also one of the founding companies that are a part of the Nano Utica initiative which was originally expected to result in the creation of 1,500 high-tech jobs, and is now projected to create more than 4,000 jobs in total over next ten years.

The $1.5 billion Nano Utica blueprint was designed to establish a dynamic nanotechnology-driven ecosystem by replicating the success of the model pioneered at SUNY Poly CNSE in Albany, which is still driving Upstate New York economic development, as evidenced by this latest TEL investment.

SUNY Poly President and CEO, Dr. Alain Kaloyeros, said in the release that “Today’s announcement is a testament to Governor Cuomo’s high tech economic development model which is spurring companies from around the world to bring their jobs and investments to New York State, while enabling companies that are already here to stay and expand.”

Tokyo, Japan-based TEL is a worldwide supplier of advanced state-of-the-art semiconductor production equipment (SPE) and flat panel display (FPD) production equipment. TEL is the largest manufacturer of SPE and FPD production equipment in Japan and the third largest in the world.

SUNY Polytechnic Institute (SUNY Poly) was formed from the merger of the SUNY College of Nanoscale Science and Engineering (CNSE) and SUNY Institute of Technology.

DC Awaits Economic Development Benefits From Skyland Center Project After 15 Years

District of Columbia Mayor Muriel Bowser and Deputy Mayor for Planning and Economic Development Brian Kenner announced an agreement with Safeway that paves the way for the Skyland Town Center development.

Skyland Town Center, DC

Skyland Town Center, DC (photo – skylandtowncenter.com)

The $265 million Skyland Town Center will create a high-quality, destination retail town center, including a new urban-format Walmart, neighborhood retailers and restaurants.

This highly-anticipated and catalytic DC economic development project is expected to create 300 construction jobs and another 300 permanent jobs for District residents, along with nearly $65 million in sales and real-property taxes to the District over 10 years.

The Skyland Town Center will be the first pedestrian-oriented mixed-use project in Ward 7 or 8. It will include transportation infrastructure improvements as well as a $5 million community amenities package. The development also includes approximately 450-500 residential units, with nearly 150 of those being affordable housing units. The Skyland Workforce Center will help local residents connect with jobs, both at the site and elsewhere.

Mayor Bowser said in a release that “With this agreement, we will bring much-needed amenities to an area that has long been underserved, put hundreds of District residents to work, and create more pathways to the middle class.”

The origins of the project go back to the late 1980s, when the 18.5-acre site in Southeast Washington, D.C. was declared a Redevelopment Zone. The Skyland Revitalization Task Force was created in 1989. The National Capital Revitalization Corp. was assigned to oversee the development of a new shopping center, and awarded the rights to Rappaport in 2002.

NCRC commenced purchase of the Skyland properties in 2004 after Congress approved legislation authorizing the use of eminent domain. Development oversight was then turned over to the Skyland Development Team (SDT) in 2007, but a restrictive covenant stalled the project once again. The covenant in question prohibits supermarkets in the vicinity of the Safeway directly across the street from the Skyland site.

The Walmart was an integral part of the project, so the Skyland development was once again put on hold pending a deal to get past the covenant issue. The agreement reached now involves a payment of $3.6 million over four years to Safeway, which has in turn agreed to release the covenant on a parcel of the Skyland site.

The District has already invested nearly $60 million in the project over the years for the purposes of acquisition, tenant relocation, property management, and legal fees.

DC Deputy Mayor for Planning and Economic Development Brian Kenner said in the release that after nearly 15 years, the residents of Wards 7 and 8 will soon have access to quality retail they need and deserve.

“This deal now puts us in a position to create greater economic opportunity, and give Ward 7 and 8 residents a chance to share in the prosperity we continue to make in the District,” added Kenner.

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