221 McKibbin Street Grand Opening
May 20, 2009
City Announces Opening of Industrial Center in East Williamsburg
Ceremony Celebrates Grand Opening of 221 McKibbin Street
With the assistance of the New York City Council and the administration of Mayor Michael Bloomberg, the Greenpoint Manufacturing and Design Center (GMDC) opened its newest not-for-profit industrial center located at 221 McKibbin Street, Brooklyn, New York.
The 72,000 square-foot building was constructed at the turn of the century as a jute factory (rope used for shipping) and until recently housed a furniture manufacturer. The $17.8 million development project entailed a complete gut renovation and rehabilitation of the property to provide small and mid-sized units for light manufacturing tenants. Units ranging in size from 1,200-7,000 square feet are currently being leased to an array of artisans, light industrial users and small manufacturers. Despite a slowdown in the economy, the project is two-thirds leased. New tenants include a display manufacturer, woodworkers, a metal finisher and a print maker, all small custom manufacturers who benefit from the building’s unique character, affordable rents, long-lease terms and proximity to the New York City market.
The City Council and the Bloomberg Administration created the Greenpoint-Williamsburg Industrial Retention Fund during the re-zoning of Greenpoint-Williamsburg in May 2005. The Fund consists of $20 Million for direct business assistance and capital acquisition of buildings such as 221 McKibbin Street. With a grant of $3.5 million from the fund, which was created with the assistance of council members David Yassky and Diana Reyna, and $500,000 from Borough President Marty Markowitz, GMDC was able to locate a suitable facility for a new project.
Deputy Mayor for Economic Development Robert C. Lieber said, “Helping New York City’s industrial businesses thrive and diversifying our economy is one of the Bloomberg Administration’s central goals and a foundation of the Five Borough Economic Opportunity Plan. The Greenpoint Manufacturing and Design Center’s McKibbin Street project is an excellent example of New York City’s commitment to maintaining its exceptionally diverse workforce.”
New York City Economic Development Corp. (NYCEDC) President Seth W. Pinsky said, “In these challenging economic times, the grand opening of 221 McKibbin Street will help to ensure that New York City based industrial and artisan businesses have affordable space to practice their trade and create new, quality jobs for New York City residents. I am extremely pleased that the NYCIDA is able to provide important resources to the Greenpoint Manufacturing and Design Center that will help them fulfill their mission and ensure that small manufacturers are able to grow and thrive in New York.”
Borough President Marty Markowitz said, “I am pleased to have helped GMDC develop this manufacturing center which will provide below market rents for small manufacturers and artisans as well as jobs in the Williamsburg and Greenpoint community.”
Council member Diana Reyna said, “This is an exciting day for the Williamsburg/Greenpoint community as we witness a concrete example of the city’s commitment to protecting manufacturing in New York.”
Council member David Yassky said, “It was important when we passed legislation rezoning a portion of North Brooklyn that, along with new residential development, we make a commitment to preserve and enhance industrial development. The McKibbin Street industrial center displays how the partnership of the Mayor’s office, the Council, the Borough President and the community can achieve this goal.”
Leslie Ramos, Executive Director of the Mayor’s Office of Industrial and Manufacturing Businesses, said, “Facilities like 221 McKibbin Street will help keep manufacturing jobs in Williamsburg and contribute to New York City’s economic diversity. The Bloomberg Administration is proud to be a partner in its development.”
Chairman of the board of GMDC Mort Goldfein said,“While the national and local economic picture continues to be challenging, we have chosen to respond by investing in existing properties, planning for expansion and assisting other communities in the redevelopment of job-generating buildings on the model of our successful public/private partnerships. The McKibbin Street development is just such an example of our work.”
GMDC CEO Brian T. Coleman said, “We are here today, formally opening the McKibbin Street center because of support of the City Council, the Borough President and the Office of the Mayor, our financial partners and our incredible staff. This was a complicated project in a challenging economic environment, so we are so thrilled to have completed the project and have begun leasing space to small manufacturers and artisans, many of whom were or would have been displaced by residential development as a result of rezoning of much of Williamsburg’s and Greenpoint’s manufacturing areas.”
Developing 221 McKibbin Street required complex and creative financing utilizing a combination of New Markets Tax Credits and Historic Preservation Tax Credits. As Brooklyn’s last remaining example of a nineteenth century ropewalk and spinning house, 221 McKibbin Street was a good candidate for historic preservation. Led by Director of Planning and Development Paul Parkhill, GMDC reached out to providers for this unique form of financing including United Fund Advisors, a Portland, Oregon based tax credit provider and CDE, and two other CDEs — Citibank Community Capital and Seedco Financial. Working closely with these three important tax credit providers, as well as the New York City Investment Fund, the New York City Economic Development Corporation (NYCEDC), and the New York City Industrial Development Agency (NYCIDA), this very complex deal was completed.
The Greenpoint Manufacturing and Design Center (GMDC) is a not-for-profit real estate development organization dedicated to the preservation and creation of permanent affordable manufacturing space for small and medium-sized industrial firms. Since its incorporation in 1992, the organization has engaged in the purchase and redevelopment of vacant and dilapidated industrial properties that are converted into multi-tenant manufacturing centers that provide flexible and affordable space, shared technology and equipment, financial services, and other business development assistance.
