Broadridge gets tax breaks, to stay on LI
Broadridge, which assembles annual reports, proxy statements, ballots and other documents for mailing to investors, has renewed leases on two cavernous factories in Edgewood and Brentwood.
The company has pledged to maintain its payroll and make improvements to the facilities, including $75 million in new equipment and $2 million in renovations.
In return, Empire State Development Corp. has recommitted to an agreement giving Broadridge $20 million in state tax credits between 2007 and 2017. In addition, the state Power Authority and Long Island Power Authority will reduce the company's $5 million-a-year utility bill by $6 million over seven years.
"The state has gone to great lengths to improve our business climate and work with leading companies like Broadridge to ensure their long-term presence and success," said Kenneth Adams, Gov. Andrew M. Cuomo's economic-development czar.
Broadridge chief executive Richard Daly credited elected officials, landlord Gerald Wolkoff and a skilled workforce for helping to keep the local factories competitive. Broadridge also has two warehouses in Islip and a headquarters in Lake Success.
"The extraordinary talents and experience of our diverse [employee] population along with the economic considerations makes remaining on Long Island the best choice," Daly said. He also singled out Sen. Charles Schumer (D-N.Y.), whose lobbying, influenced "our long-term commitment" to the Island.
Daly started Broadridge in an East Northport bedroom in 1987. The company, with sales of $2.3 billion in the fiscal year ended June 30, is the sixth-largest public company to call the Island home.
Broadridge is the third public company in about a year to agree to stay here in exchange for government aid. The others are food manufacturer The Hain Celestial Group and chemicals producer Aceto.
In November, Arrow Electronics Inc., once the Island's largest public company, transferred its headquarters from Melville to a Denver suburb without seeking help from New York State or local governments.
Broadridge executives had been wooed by Ohio, Texas and others states where the company has facilities.
The governors of Virginia and Florida visited the Edgewood/Brentwood operation in February and May, respectively, Newsday reported at the time. Broadridge's Lake Success corporate office, where about 200 people work, was never under consideration for a move.
Lowering energy and tax bills was crucial in matching the offers of other states. The Suffolk County and Islip Town industrial development agencies approved a $8.3 million cut in Broadridge's property taxes over 15 years. The Suffolk IDA also provided a $2.6 million sales-tax exemption for equipment purchases.
Broadridge recently signed leases of up to 10 years for the 1155 Long Island Ave. and 51 Mercedes Way plants. The old agreements were set to expire next year and in 2014.
Suffolk County Executive Steve Bellone said Thursday that it was critical not to lose the jobs, which pay $75,000 per year on average, to another state. He hailed Broadridge executives for "spurning offers from places like Florida and New Jersey."