The Yonkers Industrial Development Agency has voted preliminary approval of financial incentives for the construction of the Lionsgate movie and TV studio complex on the Hudson iPark campus.
The Yonkers IDA”™s board of directors voted unanimously in favor of a resolution at its Feb. 19 meeting that sets the stage for incentives including sales tax exemption, mortgage tax exemption and a real estate tax payment in lieu of taxes (PILOT) agreement.
The value of the incentives was not established in the resolution, which allows the YIDA to move ahead with the developer”™s application for financial assistance and set a public hearing.
The application by Hudson View Associates LLC shows that there are two equal owners: National Resources owns 50% and Great Point Capital also owns 50%. Lionsgate, which is headquartered in Santa Monica, California, would lease the facility from them.
The approximately 109,000-square-foot development would be built on the current parking lot of the iPark complex near the Metro-North Railroad station. A parking deck would be constructed on top of the Kawasaki Rail Car plant.
There would be three soundstages covering a total of 70,000 square feet in addition to 38,600 square feet of support spaces. The project is anticipated to create between 285 and 420 full-time permanent jobs as well as 400 construction jobs.
The application showed that there would be taxable purchases valued at $42 million associated with the construction project. While the application did not contain a benefit amount, if all of the purchases were taxed at the current retail sales tax rate in Yonkers of 8.88% and were eligible for exemption, the value of the sales tax incentive might amount to $3,729,600.
The application estimated the mortgage amount for the project also would be $42 million. Again, the application did not specify the value of an exemption from the mortgage recording tax. With a 1.8% mortgage recording tax rate, the value of such an exemption might be $756,000. The application also seeks a PILOT agreement for 20 years.
Values of the incentives are calculated when a public hearing is held and another appearance before the board for a final approval.
The application states the construction contractor would be Pustola & Associates of Naugatuck, Connecticut, and the job would be a mixed shop of union and nonunion labor.
Joseph Cotter, president and CEO of Greenwich-based National Resources, told the IDA, “According to the industry experts, a lot of the talent wants to be in the New York metro area and Yonkers fits very well into this model. We think this project will have a transformational effect on the downtown of Yonkers.”
Mayor Mike Spano, who serves as chairman of the city”™s IDA, said, “We are very excited to have this transformative project in our downtown. This development will position the city of Yonkers as the New York area’s premier filming destination.”
“The multiplier effect of the studio industry is probably one of the highest in all the economics if you look at New York state and what creates jobs because they tend to bring a lot of their so-called ecosystem with them from caterers to production people to lighting, so we”™re hopeful this will be a real heart for the downtown,” Cotter said.
He noted that they have been at iPark for more than 20 years and said this is the most exciting tenant they”™ve had. Cotter said they have visited several of the operating studios in the New York area including the Steiner Studios in Brooklyn and Silvercup Studios in Queens and said that they really do create a lot of jobs in the community.
The IDA also gave preliminary approval of financial incentives to Waverly Properties Inc., owner of Westchester Metal Works, for an $8 million expansion of its operations. The company plans to move its operations from 55 Knowles St. to a 20,000-square-foot facility at 1100 Saw Mill River Road. The company is a metals manufacturer and fabricator with 30 employees. It plans to add 22 employees.
