|HUD No. 00-208|
|Further Information:||For Release|
|In the Washington, DC area: 202/708-0685||Wednesday|
|Or contact your local HUD office||August 9, 2000|
HUD AWARDS $13.4 MILLION TO HELP CREATE JOBS AND ECONOMIC DEVELOPMENT IN ROCHESTER
ROCHESTER - Housing and Urban Development Secretary Andrew Cuomo today awarded $13.4 million in economic assistance to Rochester to help retain nearly 650 existing jobs and create about 260 new ones.
Cuomo made the announcement with U.S. Rep. Louise Slaughter and Rochester Mayor Bill Johnson at the Hill Falls Festival site at the conclusion of Cuomo's three-day visit to upstate New York that took him along the Hudson River and Erie Canal, and to the St. Regis Mohawk Tribe.
"We're investing in building a better future for businesses and families in Rochester," Cuomo said. "By helping businesses to grow, we'll retain and create jobs, we'll create new opportunity for families, and we'll help revitalize communities."
"These grants," said Rep. Slaughter, "will provide a solid boost to Rochester, both economically and in terms of quality of life downtown along the Genessee River. Secretary Cuomo and HUD are to be congratulated for their continued help to -- and partnership with -- the people of Rochester."
"I am extremely pleased that Andrew Cuomo and HUD have shown their commitment to the City of Rochester by substantially investing in four important businesses," Rochester Mayor Johnson, Jr. said. "These generous grants will enable Genesee Brewing Co., Rochester Midland Corp. and the Mill Street Realty project to expand and create new jobs, and will also enable Children's Beverage Co. to open a new local facility, bringing hundreds of new jobs to the city. As a result, the community as a whole will be positively impacted."
Rochester lost 21,000 manufacturing jobs from 1970 to 1990. The area has since, however, emerged with a more diversified economy. Fully 60 percent of its manufacturing jobs -- and 20 percent of all jobs -- are now in high technology industries.
About $10.8 million of the assistance comes from Economic Development Loan Guarantees under HUD's Section 108 Program, which enables communities to borrow money at reduced interest rates to fund job creation, housing rehabilitation and the construction of large public development projects.
The remaining $2.6 million are grants through the Economic Development Initiative (EDI) and Brownfields Economic Development Initiative (BEDI) programs, which help cities to fund activities that create jobs, primarily among low and moderate income residents. Brownfield sites include abandoned factories and other industrial facilities, gasoline stations, oil storage facilities, dry cleaning stores, and other businesses that dealt with polluting substances.
Rochester will receive a $1.5 million grant and $5 million guaranteed loan to help the Genesee Brewing Co. purchase a new brewery production system and transform the Cataract Building into a new restaurant and brew pub.
The new production system will enable Genesee to reduce operating costs, create a safer work environment, and increase productivity. The first floor of the new restaurant and pub on Platt Street will house a historical display of Genesee memorabilia and a place to purchase company merchandise.
These funds will enable the company to retain 375 jobs and create 80 new ones.
Tom Hubbard, President and CEO of the company said: "The loans and grants announced today by Secretary Cuomo and Mayor Johnson will enable the Brewery to invest in our Sankey draft system and develop the Cataract Building into an outstanding brew pub overlooking the High Falls. Both of these projects are a critical part of the plan to improve the Brewery's productivity and image. We truly appreciate the support from the City and HUD."
Genesee was established in Rochester in 1878 to produce malt beverages.
Rochester will also receive another $425,000 grant and $1.7 million guaranteed loan to help the Rochester Midland Corp. update and expand its existing facility to improve efficiency and increase productivity. As a result, the company will stay in Rochester and retain its 241 employees, with the possibility of adding more once sales improve. The company makes specialty chemicals, cleaners and household products.
Harlan D. Calkins, Chairman and CEO said: "Rochester Midland is pleased to receive the HUD grant which will help us convert a very old, very inefficient building into an efficient one, and as a result retain our Rochester workforce of 240 in place."
Rochester will use $82,000 in grant money and $820,00 in guaranteed loans to enable the owners of the former-Canfield and Tack Building located on Mill Street to renovate the six-story structure. When fully completed, this $6.3 million project will result in the retention of 42 jobs.
"We are very excited to have qualified for and received an EDI grant and Section 108 loan for this restoration project," said Lewis Norry, President of Norry Management Corp., and developer of the Mill Street project. "We appreciate all the support and assistance we've received from HUD, the City of Rochester, Monroe County, and New York State. We have a strong belief in the positive future of the High Falls District, and without this assistance neither High Falls nor our project could have been realized."
In addition, Rochester will target a previously awarded $566,000 grant and $3.4 million loan to the Children's Beverage Group, Inc. The Illinois-based beverage business will establish a northeastern manufacturing and distribution outlet on Maple Street, creating 180 new jobs during the next three years.