| Company | Ahava Food Corporation |
| Date Announced | 1/27/2000 (deal closed 6/7/2000) |
| Project Site | 236-280 Richards Street, 118-126 Beard Street, 744 Clinton St., Brooklyn |
| Competing sites | ? |
| Maximum City Subsidy | $2,006,095 in tax breaks plus savings from tax exempt bond financing. |
|
0 |
|
0 |
| Type(s) of City benefits |
Triple Tax Exempt
Bond Financing - $7,140,000 in industrial development revenue bonds
Payment in Lieu Of Taxes (PILOT) - $37,000/year in savings (as of FY 2002) Mortgage Recording Fee Waiver - $116,000 (as of FY 2002) Sales Tax Abatement - varies with purchases The company also applied for the New York City Energy Cost Savings Program. Ahava is located within the Southwest Brooklyn Economic Development Zone, which makes it eligible for certain additional benefits. |
| Benefits from New York State | ? |
| Total Benefits Allowed | ? |
| Benefits Distributed to Date (according to Local Law 69 Report FY 2002) | $177,000 |
| Promised Job Retention | 33 |
| Projected job growth | 67 |
| Total Promised Jobs | 99 |
| Jobs Reported in LL69 Report FY 2002 | 44 |
| Layoffs | ? |
| Length of Contract | 25 years |
| Project Purpose | Kosher dairy manufacturer and distributor Ahava received benefits to buy and renovate a 57,144 square-foot building. Ahava planned to produce mozzarella and string cheese in the facility (items it has previously imported) and said it planned to add 67 jobs over three years. |
| Clawbacks | Subsidies can be taken back if the company sells or leases "substantially all" of its operations, substantially changes the nature of its operations, or transfers all or substantially all of its employees outside the City. No specific job retention requirements are imposed. |
| Background/Since then . . . | Soon after moving to its new location in Red Hook, Ahava Dairy became embroiled in controversy with its neighbors. Residents complain of noise pollution from generators and trucks, especially at night. Groups Against Garbage Stations (GAGS) a community group successful in fighting waste transfer stations in Red Hook in the past, is working with attorneys in an effort to force Ahava to reduce its noise levels. |
| Corporate Notes | Ahava Dairy Products Corp was founded in 1984 by Moise Banayan, formerly a banker at Manufacturer's Hanover Trust. It began as a distributor of kosher dairy products in New York and now manufactures and distributes dairy products as well as orange juice for locations in the US and Canada. |
| A note on sources -- Information in this deal comes from GJNY's examination of project agreements obtained through Freedom of Information Law requests, as well as news reports, minutes and notes taken at board meetings, and communication with our allies. The entries are a work in progress. For more information about the documentation behind GJNY's database, or to let us know about any developments that are not yet reflected here, please contact us at gjny@ctj.org or (212) 414-9394. | |
| Date last updated: 7/3/03 | |