Brooklyn's Progress
April/May 2006

New York City’s 16 Industrial Business Zones (IBZs) got the thumbs up on Mar. 6 from the Industrial Business Zone Boundary Commission. The approval of the zones will mean relocation tax credits and on-the-ground business advocacy services for industrial and manufacturing firms in the zone.

One of New York City’s newest Industrial Business Zones is located in East New York, Brooklyn. A company called Brass Masters Imports is one of the first businesses to make this Industrial Business Zone home.

“New York City remains an attractive place for manufacturing and industrial firms to invest and create jobs, and the Industrial Business Zone Boundary Commission’s ratification of sixteen IBZs across the city marks a major milestone in our effort to retain and grow this important sector as part of our five-borough economic development strategy,” said Mayor Michael Bloomberg. “These zones, from Bathgate in the Bronx to Steinway in Queens to Sunset Park in Brooklyn, will be safe havens for manufacturing and industrial firms that have been affected by real estate pressures brought on by a booming market and ensuing speculation.”

East New York is home to one of six IBZs located in Brooklyn. Brass Masters, which imports, finishes and distributes hardware, furniture and architectural products, is one of the first companies to benefit from new tax incentives created by the Mayor’s Office of Industrial and Manufacturing Businesses (IMB). The Brass Masters facility will be 33,000 square feet and will allow Brass Masters to expand its capabilities, create more than 60 construction jobs and 45 new permanent jobs.  The total cost of the project is estimated to be $2.7 million.

The East New York Industrial Business Zone is a 100-acre zone that holds 43 industrial and manufacturing businesses that employ more than 1,000 industrial and manufacturing jobs.  Key industrial subsectors represented include steel and metal fabrication, transportation, warehouse/distribution and vinyl manufacturing.

“Manufacturing is the borough’s fourth largest sector and an important anchor to Brooklyn’s economy,” said Randolph Peers, Vice President, Economic Development, Brooklyn Chamber of Commerce. “The passage of the new IBZs will greatly enhance our ability to attract and retain manufacturing and industrial jobs.”

In January 2005, Mayor Bloomberg created IMB to implement the city’s first comprehensive industrial policy in more than two decades as part of the Administration’s five- borough economic development strategy.  Since then, IMB successfully proposed new state legislation that passed, which called for the establishment of Industrial Business Zones in 16 neighborhoods throughout the city: Bathgate, Brooklyn Navy Yard, East New York, Eastchester, Flatlands, Greenpoint-Williamsburg, Hunts Point, Jamaica, JFK Industrial Corridor, Long Island City, North Brooklyn, Port Morris, Southwest Brooklyn, Steinway, Maspeth and Zerega.  The legislation provides for a one-time tax credit for industrial companies relocating within New York City or from outside the state to one of the IBZs.  This credit will help cover eligible relocation expenses up to a maximum of $1,000 for each industrial job relocated.

Additionally, IMB proposed a second piece of legislation, known as the “CEP Enhancement Bill,” which passed and broadens the scope of the Commercial Expansion Program (CEP).  CEP provides real estate tax abatements to tenants who make improvements to their leased spaces. The law extends its benefit to manufacturing and industrial businesses, 60% of which lease their properties.  Previously, CEP requirements for minimum building size or age have disqualified a majority of industrial tenants, many of whom occupy less than 10,000 square feet of space.  The new bill allows any industrial or manufacturing tenant, regardless of building size or age, to take advantage of the program.  

For more information about IMB’s programs including IBZs, visit www.nyc.gov/imb.