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Empire State Development Corporation Approves $4M Grant Awarded to CVS Rx Services Capital for New Warehouse Distribution Location; 600 New Jobs Expected

05/24/2011
The Empire State Development Corporation has approved funding totaling more than $6 million, pledging to create 637 new jobs and retain 2,046 existing jobs in New York State. The funding will leverage over $173 million in investment across the state.

The following were awarded Economic Development Fund funding:

CVS Rx Services Capital
CVS is an integrated pharmacy services provider, combining a pharmaceutical services company with a pharmacy chain. The company considered moving its new regional distribution facility to several locations, including sites in Pennsylvania. Given the high cost of constructing and equipping a new facility, CVS Rx approached ESD in early 2008 for financial assistance to establish a new warehouse distribution location in Chemung County. In 2009, ESD awarded the company a $4,000,000 grant and the company was certified in the Elmira Empire Zone. The project will create 600 full-time permanent positions at the facility. Total project cost is $120,622,000.

JetBlue Airways
JetBlue Airways recommitted to New York in March of 2010 when the airline selected New York City as the location in which to build a consolidated headquarters. The $1,000,000 grant will be used towards collaborative marketing activities between New York State's Division of Tourism and JetBlue to grow business and promote New York State. The company will move 880 corporate jobs currently in Forest Hills, Queens and another 70 corporate jobs located in Connecticut to a single location in Long Island City, Queens by 2012. Total project cost is $19,600,000.

SCA Tissue North America MAP Capital
The company was awarded a $485,000 grant to assist with the cost of a new converting line and the construction of a new building in which the line would operate. As a result the company will increase towel production by 14%, reduce waste and retain 286 full-time jobs. Total project cost is $14,794,000.

Marquardt Switches
In March 2009, ESD awarded the company $425,000 to defray the cost of the machinery and equipment and induce the company to make the investment in New York State. The project, completed in March 2011, specifically targeted new business with Chrysler and Mercedes Benz, and involved the purchase and installation of machinery and equipment necessary to achieve significant production efficiencies. New machinery and equipment included assembly line and end-of-line test equipment for Chrysler and Mercedes programs, injection molding machines, a high speed surface mount technology equipment line and several pieces of test lab equipment. The company will retain 291 employees through January 1, 2016. Currently, the company is exceeding its employment goal employing 412 people. Total project cost is $6,150,000.

Hartford Fire Insurance Company Central New York Capital
ESDC's Directors approved a grant of up to $366,000 to be used for a portion of the cost of renovations and the purchase of machinery and equipment at their Syracuse office. The company retained 468 jobs as a result of this project. Total project cost is $12,336,000.

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