1-800-Flowers to get over $2.6M in tax breaks, grants
The 1-800-Flowers headquarters in Carle Place. The company will receive tax breaks for its move to Jericho. Credit: Newsday/J. Conrad Williams Jr.
1-800-Flowers.com Inc. has been awarded more than $2.6 million in incentives to create its new $10 million headquarters in Jericho instead of moving out of state, officials said.
The public company will receive a $1 million grant from Empire State Development, the state’s primary business-aid agency, to cover some of the costs of equipping 96,870 square feet at 2 Jericho Plaza to be a corporate office, an ESD spokeswoman said last week.
1-800-Flowers also will get $1 million in state tax credits for adding 57 jobs, bringing its local workforce to 414. The company appears to have already created 20 jobs since asking ESD for help over a year ago, the spokeswoman said.
Records show 1-800-Flowers’ HQ employees earn, on average, more than $100,000 per year.
Besides the state aid, the company received a sales-tax exemption of up to $556,312 for the purchase of construction materials, equipment and office fixtures from Nassau County.
1-800-Flowers also negotiated a 15-year deal with the county’s Industrial Development Agency that freezes property taxes at the current level of $430,782 for eight years followed by increases of 1.81% per year for seven years. The company had sought a 10-year freeze followed by 1.81% increases for five years. The deal only covers the company's portion of 2 Jericho Plaza.
IDA vice chairman Lewis M. Warren called the tax incentives “a pretty thoughtful and proactive commercial deal to keep an iconic company in Nassau County.”
1-800-Flowers, which was started in Manhattan in 1976 by the McCann family and moved to the county in 1990, reported a profit of $35 million for the year ended June 2019 on revenue of $1.2 billion.
Besides its namesake brand, the retailer owns 1-800-Baskets.com, Cheryl’s Cookies, FruitBouquets.com, Harry & David, Moose Munch, the Popcorn Factory, Wolfermann’s, Simply Chocolate, Stock Yards and Shari’s Berries, among others.
IDA chairman Richard Kessel, during last week’s virtual board meeting, said, “This is a major save. They looked at locations all over the country, but we convinced them to stay in Nassau County and to grow here.”
To retain and attract workers, 1-800-Flowers needs a headquarters with collaborative workspaces, new technology and ample parking, said senior vice president Brian McGee. That wasn't possible at 1 Old Country Rd. in Carle Place, the company’s home since 2005, he said.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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