A Port Washington manufacturer that received Nassau County assistance in 2013 to keep jobs on Long Island will relocate 24 positions to New Jersey.
Ivy Enterprises Inc., which makes artificial fingernails and other beauty products, plans to move the warehouse jobs on Jan. 7, according to a WARN notice posted on the Labor Department's website on Tuesday.
The company is building a warehouse in Piscataway, New Jersey, to be closer to the port where some of its imported products arrive, said David Cho, the company's legal counsel. The company will receive some tax incentives from New Jersey, but Cho said he couldn't say how much.
"Those are still being worked out," Cho said.
In a bid to keep the company from relocating to the Midwest or the South, the Nassau County Industrial Development Agency in 2013 offered Ivy a 12-year break on property taxes, $105,000 off a mortgage recording tax and a $583,000 sales tax exemption on equipment, all connected with the $13.5 million refurbishment of its current 72,500-square-foot warehouse and office in Port Washington.
In exchange, the company agreed to add 30 employees to its 80-member workforce over three years, bringing the total to 110 employees on Long Island.
The company currently has 132 employees on the Island, according to the filing. After the move to New Jersey it will have 108 employees.
Cho said the company added some new hires recently. "And it will continue to hire," he said. "It's only the warehouse function that is moving. Ivy Enterprises itself is growing on Long Island."
Joseph Kearney, the IDA's executive director, said the agency was keeping an eye on the developments.
"We are aware of the situation, and we are closely monitoring it," he said. "Remedies will be available if there is significant reduction in the [company's] workforce." Those remedies, he said, include clawback provisions.
Cho said the 24 affected employees had been offered transfers to Piscataway but declined. "Piscataway is a trek," he said.
Their warehouse jobs include picking products off the shelf, packing and driving forklifts, Cho said. The workers will be offered severance packages tied to their seniority and will receive outplacement services.
Under New York’s Worker Adjustment and Retraining Notification Act, companies with at least 50 full-time employees must file a 90-day notice of a mass layoff or closing.