Terrafina, LLC Expands Manufacturing Operations and Creates Much Needed Jobs in Bronx Community
The New York City Regional Economic Development Council today announced that Terrafina, LLC has signed its contract with the state and is officially moving forward with the first stages of the $200,000 award it received as part of Governor Andrew M. Cuomo's Regional Council initiative. The company has relocated into a new facility in order to expand its operations, which has increased production and helped increase its business. Terrafina has already created nearly 10 new jobs and has the potential to create as well as retain 72 jobs overall with a project cost of $715,000. Due to the increase in production and customers, total payroll over the next 10 years will infuse over $7 million into the local economy.
"The decision by Terrafina to relocate and expand in the Bronx is great news for our region," said Matthew Goldstein, Chancellor of The City University of New York and Regional Council Co-chair. "The Bronx will benefit from this expansion due to the jobs created and increased economic activity. The Council appreciates how important the manufacturing industry is to a strong regional economy. "
"This is a true success story and a testament to Governor Cuomo's leadership and commitment to helping small businesses thrive and drive our economic recovery," said Empire State Development President, CEO & Commissioner Kenneth Adams. "The Excelsior Jobs Program has allowed Terrafina to improve its ability to compete with other businesses in securing more sales through competitive pricing and has resulted in the addition of several new customers. With nearly ten new jobs already created and many more to come, this is proof that partnerships between small business and government can - and will continue to - put New Yorkers back to work."
Terrafina LLC recently relocated from a 7,000 S.F. facility in Southwest Brooklyn to a 40,000 S.F. facility the Bathgate section of the Bronx. Terrafina will leverage its financing assistance to help equip their new larger facility with faster and smarter quality control equipment. The $515,000 project includes renovation ($100,000), equipment purchases ($400,000) and training ($15,000). The project will result in the retention of 47 jobs and the hiring of 25 individuals from targeted low income communities.
James Locke, CEO of Terrafina said, "We are fortunate to have had the support and assistance from the Regional Council and the City. Our employees are very happy with our new premises, and the new opportunities that we can offer them. We are also delighted to be able to remain in New York City, a city that we love."
Last year, a total of $785 million was awarded through the Consolidated Funding Application (CFA) for job creation and community development projects consistent with each region's strategic plans. As part of that process, Terrafina was awarded $200,000 in tax credits through the Excelsior Jobs Program.
After learning of the CFA from the Bronx Overall Development Corporation, Terrafina CEO James Locke applied for financing assistance to help equip their new, larger facility with faster and smarter quality control equipment. Once all of the new equipment is installed and by improving quality control systems, Terrafina expects to improve its sales opportunities and increase sales by up to 40% by selling to big box retailers in the USA and to international clients. Since the relocation, Terrafina has added several new clients and its production rates have significantly increased.
The Excelsior Jobs Program provides job creation and investment incentives to firms in such targeted industries as biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing. Firms in these industries that create and maintain new jobs or make significant financial investment are eligible to apply for up to four tax credits. The Program encourages businesses to expand in and relocate to New York while maintaining strict accountability standards to guarantee that businesses deliver on job and investment commitments. Program costs are capped at $500 million annually to maintain fiscal affordability and ensure that New Yorkers realize a positive return on their investment. Firms in the Excelsior Jobs Program may qualify for four new, fully refundable tax credits. Businesses claim the credits over a 10 year period. To earn any of the following credits, firms must first meet and maintain the established job and investment thresholds.
Senator Ruth Hassell-Thompson said, "Terrafina, LLC is to be applauded for bringing much needed jobs and economic activity to the Bronx. Families across New York City and New York State continue to struggle financially and it is incumbent upon our governmental leaders to ensure all New Yorkers have access to livable wage jobs. I commend the Governor for his leadership in establishing these regional economic councils and look forward to working with him and his administration as we lay the groundwork for New York's economic stability and success."
Bronx Borough President Ruben Diaz, Jr. said, "I am excited about Terrafina's commitment to continued growth in the Bronx. The company's decision to officially relocate and expand its operations in the Bathgate section of our borough will create much needed jobs and provide quality food for countless Bronxites and residents across the City. My office, along with the Bronx Overall Economic Development Corporation, offers our full support for this project and look forward to working with the Regional Council and all parties involved to continue to build the borough's economy."
Marlene Cintron, President of the Bronx Overall Economic Development Corporation and member of the New York City Regional Economic Development Council said, "I am delighted with the outcome of Terrafina receiving the support it needed to create much needed jobs in the Bronx. This is a win-win for the borough as the first round Regional Council award is meeting the company's business needs to expand and succeed, while Terrafina is serving the community by providing healthy eating alternatives for Bronxites and spurring local economic growth. I commend CEO James Locke for his commitment to our communities and the Regional Council for identifying and supporting this great project."
To learn more about each regional council and their economic development plans, visit www.regionalcouncils.ny.gov.