The Westchester County Industrial Development Agency has granted preliminary approval to Regeneron Pharmaceuticals Inc. for nearly $173 million in state and local tax subsidies on a proposed $1.4 billon expansion of its Tarrytown campus.
But if the biotechnology company does not receive the tax breaks, plus $100 million in state tax credits, the project “will not materialize in New York,” according to a project summary prepared by the IDA”™s economic development consultant and presented at the board”™s Feb. 25 meeting.
The $66.5 billion company, by market capitalization, has invented nine FDA-approved drugs, the project summary states, and it needs new facilities to expand research on Covid-19 and other infectious diseases.
The company wants to build eight structures that would house labs and administrative offices; three parking garages; and a central utility plant next to the corporate and research and development headquarters in Tarrytown.
Regeneron employs 3,330 on the 250-acre campus. The expansion would add about 700 new jobs, paying an average of $220,000 a year, retain 250 current jobs and require 2,500 construction jobs.
Site work would begin in June and the project could be done by the end of 2027.
The county will forego $23.5 million in taxes but get back $38.2 million in tax revenue over 12 years, according to the project summary, for a cost-benefit ratio of $1.62 in revenue for every $1 in subsidies.
The calculation includes only the county”™s portion of costs and benefits, and not the entire $273 million, in state, county and town subsidies. The benefits include tax revenues from new economic activity generated by the project.
But Regeneron is also considering sites in New Jersey, according to the project summary, that have advantages over Westchester.
Buildings are already available there, for example, and the state”™s labor pool has the highest concentration of scientists and engineers in the county.
“The estimated cost to locate Regeneron”™s proposed facilities and new workforce in New Jersey over a 10-year period, the project summary states, is significantly lower than the Tarrytown greenfield option.”
A public hearing on the proposal will be held before the IDA considers final project approval.
“Regeneron must quickly conclude its deliberations and choose a jurisdiction for this proposed project,” the summary states before noting long-term implications of losing a deal to New Jersey.
“Wherever the project is ultimately located will likely become home to future expansion activity of a similar nature.”
True, but as the article says, 700 new scientific jobs that pay an average $220K is a big chunk added to Westchester’s bottom line. Having worked there a few years ago myself the newly hired scientists were all looking to buy homes in the area, and weren’t put off by the high taxes. That’s a serious cha-ching to Westchester.