In Tough Times, Yonkers is Still Open for Business

YONKERS, N.Y., Dec 03, 2008 (BUSINESS WIRE) -- Mayor Philip Amicone, Chairman of the Yonkers Industrial Development Agency (IDA), declared Yonkers to be "open for business" by offering an aggressive package of a business development incentives to companies that choose to locate or expand in New York State's fourth largest city located immediately north of New York City.

"It is more important than ever that we do everything we can to attract new businesses and retain existing ones. That's why I am asking the Yonkers IDA to step up its efforts to help our city compete in the global marketplace," said Mayor Amicone.

Yonkers IDA provides a range of business development incentives for interested companies. Since 1982, the Yonkers IDA has generated millions of dollars in private investment within the City of Yonkers. It induces companies to invest their capital in major economic development projects that create jobs and increase the city's tax base, thereby improving the quality of life for all Yonkers residents.

Available incentives include:

Discretionary mortgage and sales tax exemptions: A mortgage tax exemption of 1.8% is available. In addition, the IDA can exempt a project from sales tax on building materials used in its construction.

Payment in Lieu of Taxes (PILOTS): Under a PILOT agreement, the IDA retains title of the project with the business operating under a long-term lease. Since the IDA is a public benefit corporation, the project is exempt from property taxes. In exchange for this exemption, the owner of the project agrees to make annual payments that may be less than the full property tax. Usually under a PILOT agreement, smaller payments are due during the development and lease-up of the project. PILOT payment amounts increase as the project is completed and its assessed value increases. At the termination of the PILOT period, the title reverts to the owner, and the property becomes part of the Yonkers tax base.

Industrial development bonds: These are bonds issued by the IDA to finance commercial, industrial or multifamily projects. The interest cost is 2-3% less than the market. The money raised from the bonds can be used to purchase land, new construction, machinery and equipment. It can also be used to acquire and renovate existing properties.

For more information, call 914.509.8651 or www.yonkersida.com.

SOURCE: Yonkers Industrial Development Agency