2002 Section 108 Project Summary - New York

Economic Development

LOCAL BUSINESS ENTITY TO EXPAND OPERATIONS
Fulton NY Canal Corridor Project $250,000

The City of Fulton was awarded $250,000 in Section 108 loan funds that will finance the Canal Corridor Initiative Project. The City will lend Section 108 funds to Peppercorns, Inc. in order to open a second Dunkin' Donuts store in Fulton. Peppercorns, Inc will use the Section 108 funds to purchase furniture, fixtures, equipment, the franchise fee, and signage. The project is expected to create nine new full-time jobs within three years. Total project cost is estimated at $350,000.

CANAL TOWN TO UTILIZE SECTION 108 TO REVIVE RIVER ACTIVITY, TOURISM BUSINESS
Macedon Town NY MidLakes Erie, Ltd., Project $ 434,000

The Town of Macedon has taken steps to revive its tourism business by utilizing $434,000 in Section 108 loan guarantee assistance toward the Midlakes Erie, Ltd. (Midlakes) Project. The Town will lend Section 108 proceeds to Midlakes to purchase four canal cruise boats. Midlakes will use private financing and equity to construct an 18,000 sq. ft. marine and retail service building. Midlakes will contribute $73,750 of Section 108 loan proceeds to reimburse the Town for costs associated with the recently constructed public canal access center (Center). The Town will lease the Center to Midlakes in order to establish a base of operations, and Midlakes will manage the Center on behalf of the Town. Total project cost is estimated at $1,676,682. Midlakes is expected to create 32 new full-time permanent jobs within three years.

SECTION 108 TO ASSIST EXPANSION OF LOCAL BUSINESS, CREATION OF NEW JOBS
Middletown NY Aliton's Pharmacy Project $330,000

The City of Middletown was awarded $330,000 in Section 108 loan guarantee assistance that it will lend to Aliton's Long Term Care Pharmacy. Alitons will use the $330,000 to finance acquisition of 1.8 acres of land, construction of a 12,000 square foot building, and purchase of machinery for a pharmaceutical equipment and supply center. The pharmacy will create 15 new jobs, of which at least 51% will be held by low- and moderate-income persons.

VACANT OFFICE BUILDING TO BE REHABILITATED, RE-USED
Middletown NY Henry Gitner Phiatelist, Inc. $145,000

The City of Middletown will assist in the expansion of local businesses by lending $145,000 in Section 108 to Henry Gitner Philatelists, Inc. (HGP). HGP will use the funds to finance acquisition and rehabilitation of a vacant 6,200 square foot office building located on .45 acres of land, including the installation of an elevator.

BUSINESS TO UTILIZE SECTION 108 TO EXPAND OPERATIONS
Middletown NY Goshen Hardware, Ltd. $210,000

The City of Middletown will also use $210,000 in Section 108 loan funds to provide a loan to Goshen Hardware to purchase and expand Ayers and Galloway, an existing hardware store in Middletown. Goshen Hardware will use $110,000 towards property acquisition and $100,000 will be used for working capital. The newly acquired hardware store will be the second location for this family-run operation. Total project cost is estimated at $345,000.

SECTION 108 UTILIZED FOR HUDSON WATERFRONT REVITALIZATION
Newburgh NY Front Street-On-The-Hudson Waterfront Rev. Project $1,000,000

The City of Newburgh will finance Phase II of the Front Street-on-the-Hudson Waterfront Revitalization Project with the help of $1,000,000 in Section 108 loan guarantee assistance. A $500,000 HUD Economic Development Initiative (EDI) grant will be used in conjunction with the project. Newburgh will use loan proceeds for the development of a 72-slip marina as part of a broader waterfront revitalization effort. The Section 108 loan and the EDI grant compose a portion of the Regional Economic Development Initiative awarded to seven Hudson Valley communities and made available through the Department's FY 2000 SuperNOFA. Total project cost is estimated at $1,800,000. Forty-three full-time jobs will be created as a result of the project, principally for low- and moderate-income persons.

TWO-MILE RIVER ESPLANADE PART OF WATERFRONT REVITIZATION INITIATIVE, UTILIZING SECTION 108
Rockland County NY Haverstraw Local Waterfront Revitalization Project $ 1,000,000

Rockland County was awarded $1,000,000 in Section 108 loan funds that will be used in conjunction with its $500,000 HUD Regional Economic Development Initiative (REDI) to provide a portion of the financial assistance for a three-phase multi-use, waterfront economic revitalization project in the Village of Haverstraw's Urban Renewal Area. The project will abate blighting conditions present among the abandoned manufacturing sites and related commercial activities.

The entire project will create 850 units of housing, which will comprise market rate rental and for-sale units, along with 170 units of affordable rental housing. It will also include retail development, a children's museum, structured parking, park and recreational improvements, restaurants and some Village main street enhancements. In the project's first phase, the developer will finance the demolition, clearing, environmental remediation, and soil stabilization. These activities will facilitate construction of a 50-foot wide, 2.2-mile Esplanade along the Hudson River shoreline. For this, the County will provide the $500,000 REDI grant and will lend the $1,000,000 in Section 108 guaranteed loan proceeds to the for-profit developer, MDG, KV, Holdings, LLC. The total cost of this portion of the project is estimated at $7,750,000. The total public/private investment for the project is approximately $170 million.

NEW OFFICE COMPLEX TO STIMULATE DOWNTOWN BUSINESS, CREATE JOB OPPORTUNITIES FOR LOW-INCOME HOUSEHOLDS
Yonkers NY Station Plaza Mixed-Use Office Complex $ 3,000,000

The City of Yonkers will utilize $3,000,000 in Section 108 loan guarantee assistance to finance the Station Plaza Building Project. The City will provide its HUD Economic Development Initiative (EDI) grant of $1,000,000 to the developer for additional construction assistance. The City will lend the Section 108 funds to a subsidiary of Homes for America Holdings, Inc., to help finance construction of the six-story, 70,000 sq. ft. building, which will contain ground floor retail and Class A office space. The project will be located in downtown Yonkers adjacent to a city-owned 650-car parking garage currently under construction. Total project cost is estimated at $12,500,000 and is expected to create 180 full-time jobs, principally for low- and moderate-income persons.

Public Facilities

FISHING PIER, COMMUTER FERRY SERVICE TO SOLIDIFY ACTIVITIES OF BOTH SIDES OF THE WATERFRONT REVITALIZATION EFFORT
Rockland County NY Haverstraw Local Waterfront Redevelopment Project $ 1,400,000

Rockland County's revitalization efforts will be strengthened with an award of $1,400,000 in loan guarantee assistance. This assistance will provide further financing for the Village of Haverstraw's above-mentioned three-phase, mixed-use waterfront revitalization project. The project will also benefit from a $700,000 HUD Brownfields Economic Development Initiative (BEDI) grant. This part of the project will add a fishing pier, restaurant and catering facilities, and a commuter ferry service to Westchester County's Ossining Railroad Station. The total cost of this portion of the project is $3,987,700.

VACANT WAREHOUSE TO BECOME REGIONAL EDUCATION, ECONOMIC DEVELOPMENT CENTER
Wayne County NY Erie Canal Cultural Center $ 2,450,000

Wayne County will utilize $2,450,000 in Section 108 loan guarantee assistance to finance the Erie Canal Cultural Center Project in the Village of Lyons. The County will lend Section 108 proceeds to the Erie Canal Cultural Center, Inc. (ECCC) a private nonprofit organization. ECCC will renovate the 43,053 sq. ft. Hammett Building Complex, a former factory/warehouse, for use as a regional cultural, educational, and arts center, primarily designed to raise awareness of the Erie Canal. Total project cost is estimated at $3,377,186 and is expected result in 56 new full-time jobs within five years.