Gap Inc., the San Francisco-based clothing and accessories retailer, plans a $96 million expansion and renovation of its Fishkill distribution facility that will bring 1,200 new jobs to the Hudson Valley in the next five years, Gov. Andrew Cuomo and company officials recently announced. The company stands to receive a multimillion-dollar package of state and local financial incentives for the project.
A global retailer with nearly 140,000 employees and about 3,600 stores, Gap has operated its 2.3 million-square-foot, $162 million distribution center in Dutchess County for 14 years, according to Shawn Curran, Gap senior vice president of global logistics.
“As Gap Inc. continues to grow, we are expanding our Northeast distribution capacity through infrastructure investment,” he said in the announcement. “With $96 million in capital investment and the addition of 1,200 new jobs by June of 2019, Fishkill will continue to be a priority for us.”
Empire State Development, the state”™s chief economic development arm, has agreed to provide the company up to $12 million in state tax credits through the Excelsior Jobs Program. The credits will be tied to Gap”™s performance in meeting its job creation and investment commitments.
The Dutchess County Industrial Development Agency is extending its existing property tax abatement agreement, or PILOT, with the private employer, according to state officials. Gap Inc. also will be eligible for employee training assistance and a sales tax exemption through the county IDA for purchases of construction materials and new machinery and equipment.
Dutchess County Executive Marcus J. Molinaro in the recent announcement said Gap Inc.”™s investment “strengthens and secures this distribution industry cluster in the Hudson Valley, while creating hundreds of jobs in Dutchess County. Despite uncertainty in the economy, unemployment in Dutchess County remains lower than in the state and the nation. This expansion provides an important economic boost for the community and job opportunities for our residents.”
Charles Daniels III, chairman of the Dutchess County IDA, noted the retailer”™s $162 million initial investment in Fishkill in 1999 was one of the largest private projects in the state that year. The company since then has made nearly $18 million in payments in lieu of property taxes to local school, fire, library and town taxing jurisdictions, he said in the announcement.
Village of Fishkill Mayor James J. Miccio said Gap Inc. “has been a good corporate neighbor and we really look forward to continuing a long-term relationship with the company.”
Cuomo, who is seeking election to a second term in office this year, said Gap”™s decision to invest in its Fishkill facility, after considering other locations outside the state, “is another sign that New York”™s economy is on the move. By partnering with the private sector, our administration is attracting renewed interest from companies that are looking to expand, and as a result New York is among the top states in the nation for job growth since the recession.”
