Countless headlines and news stories have been written about the economic impact of the aftermath of the attacks of September 11, 2001 — both on the country as a whole and on New York City in particular.
What has received far fewer headlines are the efforts of government, citizens and companies to help New York City retain its prominence on the world’s economic stage. Companies are returning, growing and prospering in the five boroughs and beyond, thriving under some of the business-friendly changes that have been implemented.
In Brooklyn, DLX Industries made the decision late last year to stake its future in the city. DLX, a manufacturer of portfolios, theme folders, binders and other promotional materials, is renovating a 70,000 square foot facility in Brooklyn that will allow it to meet future growth needs and to operate more efficiently.
The company is spending more than $7 million at the site and will retain its 80 workers in Brooklyn and add more during the next year.
“DLX has been in New York City for 50 years, and we are very happy to be working with the IDA (New York City Industrial Development Authority), which is enabling us to stay in the city,” said Mark Stewart, president of the company.
DLX opened in New York City in 1950 with two employees. Today, the company has 80 employees and continues to grow.
“As we move to a superior location, we look forward to staying in New York City for another 50 years,” Stewart said.
DLX officials considered sites in other locations, including New Jersey, before deciding to stay in Brooklyn.
The company will receive several incentives and tax exemptions for choosing to grow in Brooklyn, totaling about $2.2 million in benefits. IDA administers the real estate and tax exemptions. In addition, DLX is eligible for Empire Zone benefits.
Business that locate in an Empire Zone, operated by New York state’s economic development organization, can get a 4 percent sales tax exemption for the purchase of electricity, natural gas, refrigeration and steam. The exemption is available only on energy used in the manufacturing process.
HIP opens headquarters in Manhattan
In October 2004, one the largest job creation projects in Manhattan since the 9/11 attacks occurred when New York’s largest HMO opened a new corporate headquarters in Lower Manhattan. The Health Insurance Plan of Greater New York (HIP) relocated 2,000 jobs to its Lower Manhattan offices and created 500 additional jobs at the site.
“When the time came for HIP to move its headquarters and consolidate operations, we were offered many opportunities in other locations,” said Anthony Watson, CEO of HIP. “But HIP was not about to move out of the city. HIP is synonymous with New York. We were founded here 57 years ago and have been serving New York continuously since then.
“Our hearts, spirit and our energy are here,” he added. “We wanted to bring all of that and more to a place that has meaning. Downtown Manhattan is that place.”
HIP is a private, nonprofit managed health care company. The company has more than 1 million members in the New York City market and has more than 2,800 employees.
The company is the recipient of more than $10 million in Job Creation and Retention Program (JCRP) funds. The New York City Economic Development Corp. and the state’s Empire State Development jointly handle JCRP, which is designed to retain and attract jobs to Lower Manhattan.
Companies who receive JCRP funds are required to make a seven-year commitment to stay in Lower Manhattan. The size of the grant is determined by a number of factors, including proximity to the site of the World Trade Center, total economic impact and the number of jobs created or retained.
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