DHCR Approves More Than $3 Million in Economic Development Grants

ALBANY, NY (09/16/2008)(readMedia)-- The Division of Housing and Community Renewal (DHCR) today approved more than $3.1 million in economic development grants from the NYS Community Development Block Grants (NYS CDBG) program. The awards will be used to create and retain more than 447 jobs and revitalize communities in Yates, Herkimer, Cattaraugus, Livingston, Cortland, Orleans, and Otsego Counties.

Governor David A. Paterson said, "The grants approved by DHCR today and funded through the Federal CDBG program will allow us to make significant investments in Upstate communities and help these businesses prosper, grow and create hundreds of jobs."

Deborah VanAmerongen, Commissioner of DHCR said, "These grants will help the awardees leverage millions of dollars in additional equity and allow for future growth. More importantly, many of the jobs being created through these grants will be targeted to low and moderate income persons."

NYS CDBG Grants approved:

• $750,000 for Herkimer County to assist in the expansion of Remington Arms Company, Inc. Ilion, NY facility. Funding will help the company create 100 full-time jobs over three years, with 51 of these jobs made available to low and moderate income persons. CDBG funds will be used towards machinery and equipment. The project is also receiving a $1.5 million grant from Empire State Development Corporation (ESDC) and a $1.5 million Legislative Grant. Grants to this project are expected to generate more than $10 million in equity.

• $750,000 for Otsego County to assist in the start up of Renewable Energy Development, Inc. The company proposes to create 124 new jobs over three years with 65% of these jobs will be made available to low- and moderate-income persons. The project is also receiving a $1 million grant from ESDC. Grants to this project are expected to generate more than $1 million in equity.

• $556,000 for Livingston County to assist Coast Professional, Inc. expand their business into New York State. NYS CDBG funds will be used toward machinery, equipment, fixtures, and working capital. The project is receiving $200,000 in ESDC grants. Grants for this project are expected to generate $725,000 in equity.

• $414,000 for the Village of Dundee for public infrastructure improvements and upgrades to support the expansion of Dundee Foods, LLC. The proposed expansion will result in the creation of 16 new jobs over three years, all of which will be available to low- and moderate-income persons. In addition, the improvements will ensure that 18 jobs are retained. Grants are expected to generate $300,000 in equity for the project.

• $225,000 for the Village of Marathon to assist in the expansion of Marathon Boat Group to expand into the pontoon boat business. CDBG funds will be used toward inventory and working capital. The proposed expansion will result in the creation of 15 new jobs over three years with 86% of these jobs available to low- and moderate-income persons. The project is also receiving a $90,000 from ESDC.

• $216,000 for the Village of Little Valley to assist in the startup of Innovative Wood Solutions, Inc. NYS CDBG funds will be used for working capital costs associated with the startup of their facility and inventory purchases. The project is also receiving a $100,000 grant from the ESDC. NYS CDBG funds will leverage over $1.3 million in private financing and owner's equity. The project will result in the creation of 54 new full-time jobs, with 40 available to low- and moderate-income persons.

• $216,000 for Orleans County to assist Hinspergers Poly Industries, Inc. expand its operations. CDBG funds will be used toward machinery, equipment, fixtures, and inventory. The proposed expansion will result in the creation of 20 new full-time jobs over three years with 80% of these jobs available to low- and moderate-income persons. The project is also receiving a $60,000 grant from ESDC. Grants are expected to generate $1.8 million in equity for the project.

DHCR administers the Community Development Block Grant (CDBG) Program for the State of New York through its Office of Community Renewal. The NYS CDBG is a federally funded program that provides financial assistance to eligible cities, towns, and villages with populations under 50,000 and counties with an area population under 200,000, in order to develop viable communities by providing decent, affordable housing, and suitable living environments, as well as expanding economic opportunities, principally for low and moderate income New Yorkers.

The NYS CDBG program objectives are achieved by supporting activities or projects that: benefit low- and moderate-income families; create job opportunities for low- and moderate income persons; prevent or eliminate slums and blight; or address a community development need that poses a serious and imminent threat to the community's health or welfare

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