A decade-long tax-incentives package will allow a longtime Farmingdale-based label-maker to grow its Long Island operation.
The Suffolk County Industrial Development Agency on Tuesday approved a 10-year, $332,000 package filled with tax abatements and other goodies for Precision Label Corp., a circa-1990 manufacturer and distributor of pressure-sensitive labels, printed packets and rebate cards for the pharmaceuticals, cosmetics and wine industries, among others.
The tax breaks will allow the company to relocate from its 16,500-square-foot space in Farmingdale to a 39,130-square-foot space in Hauppauge, which Precision Label Corp. plans to purchase and renovate. The company estimates a $6 million investment to complete the buy-and-build plan.
The incentives package – including state and local property tax abatements and sales tax abatements – also helps the company retain 30 Long Island jobs with an average salary of $68,000 per year. Precision Label Corp. President Brad Cohn had noted a possible out-of-state location in his IDA application.
Instead, the company will likely add seven full-time Suffolk County jobs over the next two years, according to Cohn, who said Tuesday that the development agency’s assistance is “extremely meaningful to a small company like ours.”
“Our key to success has been our commitment to reinvesting in technology and personnel each year,” Cohn added. “The assistance granted to us by the IDA will allow for our continued growth here in Suffolk.”
Suffolk IDA Executive Director Tony Catapano said his agency is always excited to offer sweeteners to manufacturing companies, which have a “multiplier” effect on economic activity.
“When you spend money on manufacturing, you effectively create a significant multiplier in money generated for the local economy,” Catapano said in a statement, adding Tuesday’s developments were another economic victory for a county that faces constant threats from outside the state.
“By offering them incentives, we make it more viable for the company to keep its operations in Suffolk County, and make it less attractive to relocate to North Carolina,” Catapano said in a statement. “These benefits create a real, positive ripple effect.”