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Hudson Valley Region, June 2015

FIRM EXPANSIONS AND CONTRACTIONS

Hudson Valley Region

June 2015

New York State Department of Labor
Division of Research and Statistics
120 Bloomingdale Road, Room 218
White Plains, NY 10605
914-997-8798

This briefing provides information on firm-specific hiring and layoff announcements in the Hudson Valley. The information in this report is derived from press releases, newspapers, business journals, newsletters and other public sources. It does not include all expansions and contractions in the region – only those for which public information has been obtained. An attempt is made to present only current information – events that have recently occurred or will occur in the near future.

BUSINESS EXPANSIONS FOR THE HUDSON VALLEY REGION

Dutchess County
Vassar Brothers Medical Center
has proposed what could be the largest construction project in the history of the city of Poughkeepsie. Vassar Brothers, the flagship hospital of Health Quest, announced plans to build a seven-level, 696,000 square-foot impatient pavilion with 264 private rooms for medical and surgical patients, 30 intensive-care rooms and a rooftop helipad for medical transport. The $466 million project will be financed with private hospital funds and hospital bonds. The hospital has filed a certificate of need with the state Department of Health and expects to gain the required approval by May 2016. The 2 ½ year construction phase of the project is expected to create about 300 to 400 jobs, with the pavilion opening by January 2019.

AmerisourceBergen, a pharmaceutical sourcing and distribution services company will invest $39.3 million to build a state-of-the-art distribution center in the Town of Newburgh. The facility will be built on Corporate Boulevard, off Route 17K, across from Stewart Airport. AmerisourceBergen will receive up to $1 million in performance –based Excelsior Jobs Program Tax Credits from the Empire State Development and in return has agreed to hire 121 new employees in the next two years and maintain those staffing levels through at least 2025. The company operates 26 distribution centers and four specialty distribution centers in the U.S.

(update) Angry Orchard, a hard cider manufacturer, broke ground on its new 60-acre facility in the Town of Montgomery. The new facility has the support of Empire State Development, which contributed $175,000 in Excelsior Tax Credits in exchange for an agreement from Angry Orchard to hire at least seven full-time employees through 2018 and invest $9.1 million in the new facility. Owned by the makers of Samuel Adams, the Boston Beer Co., Angry Orchard, which launched in 2012, has quickly expanded to gain the top-selling spot in the burgeoning hard cider industry. As part of the deal with Angry Orchard, the family will continue to cultivate the orchard and retain all jobs associated with caring for and harvesting the land.

(update) JCA Hospitality L.L.C., announced plans to build a 95-room Home2 Suites by Hilton Hotel in the Town of Wallkill. The $10 million hotel will create 24 permanent jobs with an annual salary range of $24,000 to $90,000. Owners Chat Patel and Jacob Kriney are seeking tax incentives from the Orange County Industrial Development Agency.

Nowak Properties Inc. announced plans to build a 108-room hotel off Route 6 in the Town of Wawayanda. The owners of the project are seeking a sales/use tax exemption of about $300,000 and $1,125,000 property tax abatement over 10 years. The hotel will employ about 19 people with annual salaries ranging from $20,000 to $65,000.

Orange Regional Medical Center has begun construction on a $99 million expansion in the Town of Wallkill that will include a five-story medical office building and a single-story cancer center. Both new buildings will be connected to the existing hospital. The project is expected to be completed by the fall of 2016. The hospital and state Dormitory Authority have closed on $70 million in tax-exempt bond that will finance the bulk of the project. The rest of the money will come from capital fundraising program, equity contribution from ORMC and outstanding 2008 bond proceeds from the hospital construction. The existing hospital, which cost $350 million to build, opened on August 5, 2011.

Putnam County
Nothing to report.

Rockland County
Nothing to report.

Sullivan County
Nothing to report.

Ulster County
Nothing to report.

Westchester County
The long-abandoned Boyce Thompson Institute in Yonkers, which had been abandoned for 40 years, is being redeveloped into an 85,000-square-foot mixed-use complex with office and medical space, restaurants, banking and retail stores. The original building will be restored and a new 18,000-square-foot addition will be attached to the south end of the building. A new and separate 15,000-square-foot, two-level freestanding glass and aluminum building will go up at the corner of Executive Boulevard and Executive Plaza, for either medical or business use. The $35 million project is expected to take 20 months, including renovation of the existing structure. No job numbers were announced.

BUSINESS CONTRACTIONS FOR THE HUDSON VALLEY REGION

Dutchess County
Mount Kisco Medical Group
has filed a WARN notice the NYS Department of Labor in anticipation of a mass layoff. The medical group will eliminate 109 jobs in its billing department on August 30, 2015. The layoffs will be spread out across five offices in Dutchess County (Fishkill 27; Rhinebeck 6; Poughkeepsie 1), and Westchester County (Chappaqua 71; Mount Kisco 4).

Orange County
Nothing to report.

Putnam County
Nothing to report.

Rockland County
Novartis Pharmaceuticals
indicated that the fifth phase of its planned layoff at the Suffern facility in Rockland County will involve 21 employees. No set date has been announced for the layoffs, which are now planned for some time in 2016.

Pfizer Pharmaceuticals announced that it will be laying off another 23 employees, 19 of them unionized, from its Pearl River plant. The layoffs are to occur by the end of July 2015.

Sullivan County
Nothing to report.

Ulster County
Nothing to report.

Westchester County
Gap
announced plans to close 175 stores in North America. The majority of the stores to be closed are in the United States. The company will also eliminate about 250 corporate jobs at its headquarters in San Francisco and in New York and other locations nationwide. Gap operates several stores throughout the region and no announcement has been made in regards to them.

STRIKES AND LABOR DISPUTES

A group affiliated with a labor union on the Tappan Zee Bridge project has filed a complaint against Tappan Zee Constructors, accusing it of failing to make obligated contributions to multiple worker benefits funds.

The federal complaint, filed on May 7, is the second labor-related lawsuit the bridge builder is facing. Last month, TZC prevailed in a $7.4 million wage dispute against the United Brotherhood of Carpenters and Joiners of America. In the latest civil action, officials for five funds tied to the carpenter union claim TZC owes $187,186.37, plus interest and other fees, from April 8, 2013, through August 10, 2014. The money is used to fund pensions, annuities, journeyman retraining and charitable causes, among others.

The lawsuit claims TZC was required to make contributions to the funds, even though the union couldn’t provide qualified workers for certain types of work on the project. In this case, TZC used union iron workers. TZC also would have been obligated to pay the fund if it brought in non-union workers.

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